This was the brainchild of highly-respected gold watcher James Turk. Goldmoney was structured with a cast iron guarantee that there will always be 100% gold backing of every unit of currency (called “goldgrams” in this case) in circulation, and they claim that some others do not have the same cast-iron guarantees in their small print. Whether this is true or not is hard to say, as for an ordinary investor the small-print is difficult to understand, but the discussions and articles available make interesting reading when deciding on the safety of providers you are considering.
Goldmoney, like e-Gold did, also tries to offer the use of Goldmoney as a medium of payment. This however is not very heavily used right now, and the majority of investors are gold bugs simply buying gold and silver and holding it.
What could appeal to British or EU citizens about Goldmoney is that it is Jersey-based. You may trust and understand the rules of Jersey more than those of the Caribbean or Panama. This is not to say that other organisations are unsafe. A US-citizen may just as easily understand Panama and believe it to be much safer than Jersey.
As time went by, Goldmoney has opened a variety of vaults to cater for the requirements of international buyers, including London, New York, Zurich, Singapore and Hong Kong.
GoldMoney also has a Silver option, and this represents an excellent opportunity for European Union buyers to buy Silver bullion without legally paying any VAT. More latterly they also introduced the ability to hold the national currencies of Dollars, Pounds or Euros in your Goldmoney account and receive interest on it. You can then switch your holding between any of the five denominations (including the two metals), as you see fit.
Knowing that it’s the fees that make investors poor and brokers rich, you are probably best off not utilising this feature. The fees will quickly eat into your returns, and a buy-and-hold strategy is probably best.
Payment into GoldMoney is by bank transfer. Payment out can be made by direct bank transfer.
One other aspect of GoldMoney worthy of mention is that at one point the terms and conditions said that if your account is not logged into for 12 years the ownership of your gold reverted to Goldmoney. Okay, it sounds unlikely, but consider what would happen if you died and never told anybody about your holding or even if you were unable to use the internet for 12 years due to some kind of accident or national crisis.
Overall, a highly respected organisation with the reputation of a known “gold-watcher” behind it. Even if you don’t buy Goldmoney then there are articles available for free on the website that make interesting reading.