Opened an account at Monetary Metals (gold leasing)

[Bottom Feeder]

Ownership doesn't imply possession

Heh, yah, that was Ponce's point.

 

[Peter89]

My understanding is it's difficult but not impossible to withdraw gold thats in a lease. When your leases are finished your funds/metal go into a lease yield account where they still earn a yield (flat 4%) while waiting to join the next lease. If you notify them you don't want a portion of your funds available to join the next lease, the funds are put into a 'storage account' which earns no interest. That's where you'd leave your money if you were prepping to cash out. A portion of my account remains in active leases.
If you want to liquidate into cash, thats done without any fees and happens faster of course. But thats a taxable event while receiving metal isn't. However, you do get 1009'd annually for the lease interest you earn.

So, if I get it right

a) client withdraws metal during lease or while metal is in the yield account --> 0.75% transaction fee + 1-4% above wholesale price (wholesale price > spot). (No shipping fee?)

b) client withdraws metal while metal lies in storage account --> lower fees than a). (How low?)

c) client let them sell his metal and withdraws cash --> no fees. (Metal gets sold at spot?)

Thanks again HC

 

[hernancortes]

So, if I get it right

a) client withdraws metal during lease or while metal is in the yield account --> 0.75% transaction fee + 1-4% above wholesale price (wholesale price > spot). (No shipping fee?)

b) client withdraws metal while metal lies in storage account --> lower fees than a). (How low?)

c) client let them sell his metal and withdraws cash --> no fees. (Metal gets sold at spot?)

Thanks again HC

A) Yes, .75% plus 1 to 4% over 'wholesale' (I dont know exactly what wholesale means) plus shipping. I forgot to include that. MM does pay for shipping if you send them metal, but they charge you shipping when it's sent to you. I have to go back and check what they charged me for shipping.
B) I believe the fees are the same no matter what account type you're drawing from.
C) Yes

 

[nickndfl]

So many fees make it almost cost prohibitive to ever get your metal back?

 

[hernancortes]

So many fees make it almost cost prohibitive to ever get your metal back?

Like I said somewhere above, the only way you'll clear the fees to collect more oz than you started with is to lease for an extended period. I think maybe 1.5 years minimum. Minor point I neglected to mention is the 0.75% withdrawal fee is a maximum. The more you withdraw in dollar value of metal the less you'll pay with 0.55% the minimum.

 

[Peter89]

A) Yes, .75% plus 1 to 4% over 'wholesale' (I dont know exactly what wholesale means)

Wholesale is the price within the wholesale market.

"Bullion wholesalers are companies that act as middle-market distributors in the precious metals industry. They buy large quantities of gold & silver directly from mints, refiners, or producers, then sell them to retail bullion dealers, coin shops, jewelers, manufacturers, financial institutions, and sometimes high-volume buyers."

Sometimes the wholesale price is lower than the spot price, sometimes higher. For wholesalers, the spot price (the official price) works just as a reference price, the starting point for negotiations.
You can look at the wholesale market as the black market for standard size bars, so to speak, in the sense that there is no official wholesale price, it is the price wholesalers settle each transaction at.
The so-called bullion banks are wholesalers that have enough leverage to set the international spot price.

The website of the Allocated Bullion Exchange offers a real time overview of the wholesale price within the major trading hubs

Allocated Bullion Exchange | ABX

Allocated Bullion Exchange is the first electronic exchange for physical precious metals trading. Trade gold bullion with improved efficiency and pricing.

abx.com