I don't see anything posted about this, Kitco (Hong Kong) sent me an email to inform me that bullion I have in their "Pools" holdings service has been stopped with effect a 1 November. I called them and they allowed me to sell it on the spot back to them. The alternative was to either convert it to bullion and they would store it for me with a service charge, or I could take physical delivery. I don't want the bullion in my house, so I sold on the spot over the phone. I profited just over 10% from when I purchased it, but no more Kitco pools! In fact, no more Kitco anything for me if they can change their policies with back date effective timing. That is just plain reckless playing around with clients money! Does anyone know of any other reliable bullion pools investment company? Prefer outside of the US.
To clarify, the "pools" account is not physical bullion which is convenient if you want the investment, but not the metal in your grimy hands. The "pools" service has been discontinued.
Fortunately "my grimy hands" continue to provide excellent and accurate service. And I've never once seen any issue with my allocation pool not being backed 100% by physical metal. My new arrivals!
Anyone even contemplating a "pool" or a "Gold IRA" should first request a prospectus and read every line before doing so. Some of them set specific instructions and methods for eventual physical delivery, the bonded delivery can get very expensive. Also almost all of them have clauses where they can pay in cash instead of the bullion if they wish. Lastly , more than 1 such company offering these have simply disappeared.
Thanks, I am specifically looking for a "pool" like kitco had up until earlier this month. They have paid me back in full, minus the wire transfer cost. I do not want physical bullion in any case with my residency status. It would be difficult and more expensive for me to take possession of it.
I am missing something on your website: http://www.republicmetalscorp.com/all-products/ I don't see a "pool" product service?
That isn't my site. I'm a buyer / customer. I took physical delivery into my grimy hands. I don't trust or use pool/IRA services from those places.
Understood! Kitco was good while they lasted! Would expect this would have a client base but then I am too practical!
I would implore any and all people not to buy into a pool. If you want to lose your money that is the way to do it. Buy actual bullion and hold it yourself. A small safety deposit box is a good write off and a safe place to keep it. If you had a proper holding company for your gold, they would charge about 1% of the value yearly anyway. Since I mentioned 1% that is also approximately the percentage of all gold trade that is actual bullion out of all daily transactions for gold. So for every 1 million ounces of gold bought and sold, only 10,000 ounces would be actual physical gold. It really is sad situation. Our Canadian government sold off all our gold. We had around 46 tonnes in 2000 and now we sit at 0. Then the public wonders why our dollar has taken such a beating? It's not rocket science but the politics suck and nobody is ever held accountable. Sorry for the rant, but feels better. lol
"Since I mentioned 1% that is also approximately the percentage of all gold trade that is actual bullion out of all daily transactions for gold. So for every 1 million ounces of gold bought and sold, only 10,000 ounces would be actual physical gold." Not exactly, although it is a common 'scare' tactic. "So for every 1 million ounces of gold bought and sold, only 10,000 ounces would be actual physical gold." I do believe you are talking about the difference between paper contracts for gold as compared to delivery contracts for gold. The delivery contracts are for a certain quantity of gold @ then current prices to be delivered at a certain specified date. The date may be within a week or as much as years down the road. This works for bullion dealers, manufacturers such as jewelers, etc. If the price goes down by delivery, they lose on their contract play. If it is higher, it pays off as the price they paid was cheaper. Of course the middle men ask a fee for handling the process, but once the contract is purchased , they will get their gold except for delivery fees ( transportation) added. The other are contracts on the price of gold at a specific date. Option players buy long ( expecting it go up at that end date) or short ( expecting it to go down at that end date). The Trading House balances one side against the other, and take their cut ( fee). If it is a perfect balance, there would be same value losing as winning, and the house gets it's share no matter what. Since they get their fee on the quantity bet , they allow margin accounts so the players are encouraged to buy/sell more contracts, and the house can change the margin at any time, and the player has to come up with it. So no gold is exchanged by this game, only currency for paper. Almost 100% done by computers at high speed. It is not a game for the faint heart. And remember, this was construed by big banks that had a lot of access to gold to tempt those CONVINCED ( possibly by others) that gold was going sky high due to ____fill in the blank_____ or that the USD was going to crash. or conversely convince them to SELL their physical and hold higher risk bets to end up with more cash. Often the # of paper contracts exceed a million. Your mileage may vary.
"A small safety deposit box is a good write off and a safe place to keep it." I write off the cost one SDBX for tax purposes I did not know I could write off the cost of SDBXs used for storage of coins, bullion & currency.
