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mark_rog

Goldmoney Warning

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Hi all,

be gentle with a lurker's first post ...

I was going through the options for buying silver, and saw that Goldmoney have silver as well now. Their website http://goldmoney.com/en/buy-silver.php seems to indicate that the silver held is allocated.

However I was a little suspicious, as there was no mention of VAT, which is payable on Silver bullion. The reply I received went as follows:

A GoldMoney Administrator wrote on 2006-Jul-24 17:31:56
GMT:
While we always advise that you additionally confirm any
tax code information directly with your financial advisor,
according to UK customs, one does not have to pay VAT on
unallocated silver holdings.
Per UK customs regulations, the sale of UNALLOCATED
precious metals are not subject to VAT. Please note the
definition of UNALLOCATED: Goods are unallocated if they
remain an unidentifiable part of a larger stock of goods
held by the supplier.
Because our users do not have his/her silver allocated to a
specific 1,000 oz bar(s) of silver makes it a "financial
service" and not a delivery of goods. However, the moment a
customer asks for specific delivery in the EU, VAT will be
payable. For more information, please see: hmrc.gov.uk

I'm probably missing a legal nicety or 3, but I found this at the least misleading. Any thoughts whether this is a safe way of holding silver or not anyone?

Mark

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Hello Mark,

When I looked at this, the Silver is indeed unallocated (to avoid VAT), but it is 100% backed. So they hold enough silver to back all the digital receipts they hand out.

That's my take on it anyway. Maybe it's worth going back and asking what backing they have. If it's not 100%, and they don't state that it will always will be 100%, i'd start to worry.

Edited by Jason

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Thanks Jason,

I was also worried about Sh1t-hitting-fans type scenarios and the legal ownership of the silver. I won't bother writing to them about this, as they'll probably take me for the doomsaying hpc crazy I am! Generally bullionvault seems to have better transparency, so i'll stick to gold, and start re-enforcing the loft beams for silver.

Anyone got thoughts on the different internet gold storage providers?

Mark

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I would write to them, it would be nice to know if you get the same answer as me. Don't worry about being perceived as a doom merchant, they probably get it alot (the questions that is). After all, that's what golds all about.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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