These governance procedures are disclosed on the website. One the most important of these is the regular audits by one of the Big-4 auditing firms, which establishes that the weight of gold and silver in the vault is exactly the amount recorded in customers' accounts and that there is always this one-for-one relationship.
It means that we're actually storing gold and silver that you own. This audit report is available to our customers upon request.
And regarding your question about the difference between buying gold bullion and GoldMoney, there is no difference. When you buy gold bullion, there are two ways of doing it.
You can buy gold in bars and coins and store them yourself, or you can buy them in GoldMoney and have the gold stored for you in vaults in Zurich and London. It's just a question of diversification, convenience, and economics.
Because of our economies of scale, you get more gold for your money when you're actually buying it in GoldMoney, plus you have the opportunity to store it in countries where you don't live. And I do recommend that geographic diversification. However, I also recommend that people consider having some gold where they live, too, because a little bit of gold on hand never hurts just in case.
I do not recommend putting your gold or silver in a bank, however, because you want to keep it some place safe. Banks are not a safe place to store gold and silver, because when gold was confiscated in 1933, the federal government went right to the banks and took all the gold and silver that was stored there.
With GoldMoney, is there a 1099?
No, because we're not a U.S. company; we operate in the British Channel Islands, and there's no reporting outside of the British Channel Islands. In our User Agreement, we say that our user is responsible for complying with any rules or regulations from wherever he accesses GoldMoney.
We have customers in over 100 different countries around the world. We couldn't possibly comply with reporting requirements in all those different countries. So, what we do is comply with the laws in Jersey, Channel Islands, where we operate.
Jersey is a major financial centre. It is located in the English Channel, so it's located in a politically safe jurisdiction. It's a sovereign country, and we comply with the laws of that country.
Image: Banks are not a safe place to store gold and silver.
Also read: How much should you invest in gold now
Advertisement
