frequently asked questions
What forms do precious metal bullion products come in?
Precious metal bullion products are available in various forms, which carry premium costs.
This premium is called a “Bullion Premium” or “Fabrication Cost” or “Bar Charge”. These charges are in addition to the ask price charged, and will vary depending on market conditions and the quantity being purchased.
These products previously received a premium above the “Bid” when being sold, but this is now dependent on market conditions and the quantity being sold.
All products are of Hallmark refineries such as Johnson Matthey, Handy Harman, Credit Suisse, Engelhard, or Government Mints – such as US Mint, Royal Canadian Mint (RCM), etc.
All products other than industrial bars are subject to availability.
If I take “Home Delivery”, what additional costs are involved?
- “Bullion Premium” or “Bar Charges”
- Shipping – Register Post or Bonded Courier
- Insurance, applicable local taxes of your home country, state, or province
- Customs Duties (if applicable)
How do I store my product that I have in my possession?
This is an individual preference:
- Safety Deposit Box
- Bonded Insured Warehouse (If available in your area)
- Home Safe, etc.
How do I go about selling my product that I have in my possession?
Depending on the type of product you have, you may sell it to:
- Global Vault Group
- Local Coin Dealers
- Your Original Dealer
- Some Banks may be willing to buy it from you
Note: Once you have product in your possession and you wish to sell it, you may be asked to have the product re-assayed (at your expense) prior to being given a sale price. Generally, assay costs are charged as a percentage of product or product value. This will ultimately reduce the amount you receive.
There are also security risks involved in handling the product, such as theft or loss. Once you have decided to sell your product, it may take some time to safely deliver it to a buyer and lock in a sale price. During this time the price may go down and it may be significantly lower than when you made your decision to sell. Finally, depending on the size of bars, you may be limited to selling the entire bar as opposed to only selling a portion of that bar.
Example: 1000 oz. Bar must be sold as a 1000 oz. Bar.
You cannot sell a portion of it and keep the balance.
What flexibility do I have with the product in my account with GVG?
GVG provides you with the ability to buy or sell in increments of 1 oz. – Gold, Silver, Platinum, and Palladium – without the premium costs related to “Bullion Premium or Bar Charges” and eliminating the difficulties or risks described in the answer to the question above.
If I have product at home, can I place it in my account with GVG?
Yes, Discuss your objectives with your Retail Dealer. Remember, your product will likely have to be assayed at your expense, prior to the final credit to your account.
Can I use paid for product in my account with GVG as collateral to purchase product or receive funds?
Yes, Subject to the Terms & Conditions of your account, GVG will advance up to 70% of the value of product in your account in order to meet your personal needs.
When I have product in my account with GVG - where is it stored?
GVG maintains omnibus storage accounts with internationally-recognized depositories specializing in precious metals products.
This enables GVG to:
- Provide home delivery from your account, at your request
- Provide you with credit facilities
- Provide you with competitive prices whenever you wish to buy or sell product from your account
- Provide you with the ability to buy or sell in 1oz increments without the high costs related to premium charged for “Bullion Premium” or “Bar Charges”
All products held by GVG for the accounts of GVG are segregated from all other assets and inventory owned by GVG. In order to ensure this segregation, GVG employs an outside accounting service which monitors the daily transactions and inventories of all GVG accounts.
What about certificates issued by banks?
Certificates for Gold or Silver issued by banks will vary in terms of quantity and price. They are subject to the Terms & Conditions printed on the face and back of the certificate. Generally they are transferable to third parties but must be sold to the bank of issue, or to other banks willing to recognize them. There are very few banks which deal in certificates, therefore resulting in an increasingly shrinking market. Bank-issued certificates for precious metals are not FDIC or CDIC insured. For these reasons GVG does not deal in precious metals certificates.
Why is there a difference between the “Ask” Price (price I pay when purchasing) and the “Bid” Price (price I get when I am selling)?
The spread between Ask and Bid on precious metals products is comprised of two components:
- Wholesale dealer revenue margins
- Market conditions relative to supply/demand
Note: When you purchase precious metals bullion products, you will pay a premium over the “Spot” market. In general, as it is the “Bid” price you will receive, when you sell it is the “Bid” price that must increase to the level of your “Original Ask” price in order for you to be at Break Even. (This is exclusive of any commissions you pay your Retail Dealer).
How does the Retail Dealer’s commission charge affect my break even?
In general, all charges you pay including commissions should be added to arrive at your final cost, which can then be divided by the quantity of product you have purchased. The resulting figure is equal to your break even at the time of your purchase (exclusive of ongoing finance and storage/service charges, if applicable).