Profit margins for banks providing vault services for storage of precious metals have fallen dramatically for two reasons: firstly, there is burden of compliance paperwork, and secondly, retail customers have reduced their holdings discouraged by a seemingly entrenched bear market in gold and silver. Put another way, costs have risen and income has fallen.
The latest bank speculated by the media to withdraw from this market is HSBC, which has given sixty days' notice to its retail customers that it will cease offering vault storage facilities. Given that all banks face the same squeeze between rising costs and falling income, it may prove difficult for these customers to make alternative arrangements within the banking system.
This is where GoldMoney can help. GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.
Through GoldMoney's non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada. GoldMoney partners with Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.
GoldMoney currently has over 20,000 customers worldwide and holds over $1 billion of precious metals in its partner vaults.
GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every three months by two leading audit firms.
GoldMoney nor its representatives provide financial, legal, tax, investment, or other advice. Advice should be sought from an independent regulated person who is qualified to do so. Any information provided is solely as general market commentary and is not advice.