Above certain value, storing precious metals at home is not optimal solution due to security, cost and liquidity reasons. Many people find it more secure, liquid and cost effective (in terms of premiums and insurance) to store them at specialized firms who have agreements with major vault operators in most secure and stable locations in the world.
GOLD STORAGE
The table below compares the cost of storing physical GOLD at leading precious
metals companies:
GOLD STORAGE
The table below compares the cost of storing physical GOLD at leading precious
metals companies:
Company |
Storage Fee |
Minimum fee per year |
Sprott Physical Gold Trust |
0.45% |
- |
BullionVault |
0.12% |
48 USD |
GoldMoney |
from 0.12% |
120 USD |
OneGold |
0.12% |
20 USD |
BullionStar |
0.39% / 0.09% BSP |
69 SGD |
Austrian Mint |
0.48% to 0.36% |
- |
GoldAvenue (MKS PAMP) |
FREE up to 10kg |
0.3% >10kg (50CHF) |
SilverBullion PTE Ltd |
~0.35% |
- |
DIGITAL, GOLD-BACKED TOKENS
In 2020, we saw a rise in Gold-backed tokens / cryptocurrencies.
The table below presents some of them, together with the yearly storage fee
and minimum redemption size, in case you want to exchange these tokens
for physical gold bars or coins.
In 2020, we saw a rise in Gold-backed tokens / cryptocurrencies.
The table below presents some of them, together with the yearly storage fee
and minimum redemption size, in case you want to exchange these tokens
for physical gold bars or coins.
Token Name/Company |
FEE |
MIN. REDEMPTION SIZE |
PAXOS GOLD - PAXG |
0% |
430 oz |
CACHE.GOLD - CGT |
0.25% |
100 grams |
PERTH MINT - PMGT |
0% |
1 oz |
DGLD.CH |
1% |
1 gram |
KINESIS.MONEY - KAU |
0% |
100 grams |
AURUS.IO |
0.4% / 2% |
Any size - 500 EUR fee |
Here is the summary what companies are involved in each Gold Digital Token design, trading and storage:
- DGLD: MKS PAMP, Blockchain.com , Coinshares
- PMGT: The Perth Mint - Vault Custodian & InfiniGOLD - PMGT issuer
- CACHE.GOLD: The SafeHouse (Singapore), Brink's, Loomis, Dillon Gage IDS, OnChain Custodian
- PAXG: Paxos Trust Company, LLC, Brinks
- KINESIS: Kinesis Cayman, Kinesis AG Liechtenstein, Allocated Bullion Exchange, Brink's
How much physical gold is tokenized by these tokens?*
- PAXG: 39392 oz
- DGLD: 14509 oz LINK: https://explorer.dgld.ch/assets
- PMGT: 615 oz LINK: https://etherscan.io/token/0xaffcdd96531bcd66faed95fc61e443d08f79efef
- CGT (CACHE): 1418 oz / 44100 grams LINK: https://explorer.cache.gold
- KAU / KINESIS: 9601 oz / 298600 grams / LINK: explorer.kinesis.money
BENEFITS OF GOLD-BACKED DIGITAL TOKENS
Gold-backed digital tokens enable investors to avoid high premiums associated
with buying physical coins and bars, so they are much better suited for short term trading.
The storage fee varies, but generally for small transactions is below the minimum
storage fee at most bullion dealers or mints.
SILVER STORAGE
The table below presents for list of some companies offering silver storage solutions, which are economical for both large and small (below $500,000) investors:
To store small amounts of silver 100 - 500 oz, the most cost-effective are:
- OneGold,
- Sprott Silver Trust PSLV,
- ZKB ZSIL ETF
- BullionStar BSP program,
- Kinesis.money,
- GoldAvenue (they charge VAT for silver products of 7.7%).
EXAMPLE: STORING $10,000 worth of precious metals in 4 different forms and in many vault locations.
Let's assume you want to allocate 50% to gold and 50% to silver and pay the lowest storage fees possible, spreading your metals in 4 different forms of owning it.
- $2500 in CACHE.GOLD (CGT) Token,
- $2500 in Perth Mint Gold Token,
- $2500 in KAG Kinesis silver cryptocurrency,
- $2500 in OneGold allocated silver program.
Total per annum costs will be:
0.25% x 2.5k USD for CGT +
$20 for OneGold storage program =
26.2USD.... or 0.262% per year.
OneGold offers storage in Canada, Switzerland, USA or UK.
Kinesis stores metals in 7 different countries, PMGT stores in Australia and CGT mostly in Singapore.
You can own precious metals in various forms, pay very little costs and have them stored in many countries.
CGT, KAG, PAXG and PMGT allow you to trade them Peer-to-peer for cryptocurrencies or for fiat currencies.
All four forms of PMs ownership allow you to convert them to physical bullion.
Additionally, you can spend your bullion with a Debit Card with Kinesis.