GoldMoney.com

[murphy_p_t]

fnord -

regards ownership, from their owner agreement (which is a legal document, as best i can tell):

"It is recorded that:

  1. Subject to clause 8.F.ii, title to the Metal in allocated storage at the Vault shall at all times vest in the relevant Customers. GoldMoney arranges storage of all such Metal as Your agent and not for its own account;
  2. GoldMoney has no proprietary interest in Metal in storage, except where such claim arises from fees owing to Us and/or the Vault..."


from http://www.goldmoney.com/customer-agreement.html


from http://www.tech-faq.com/sas-70.shtml  , the SAS70 doesn't seem to address the question of ownership

[fnord123]

The customer agreement is definitely reassuring - I'd probably consider it a good diversifier for a reasonable amount of gold (let's say up to $20K), assuming the fees are competitive (I don't know if they are or are not, I have not yet diversified internationally).

Before going any higher I'd want a lawyer familiar with Jersey bankruptcy law to opine on it.  The difference I see is that there are long established precedents around the contents of safe deposit boxes in most countries, including the USA and Switzerland.  All we have about goldmoney.com is their own website - which says good things, but doesn't carry the same level of legal strength as an honest-to-god precedent.  Also, I don't think SIPC protects goldmoney.com accounts in case of failure.

This isn't meant to bash GoldMoney.com - it is just an opinion on the level of safety using it versus other options.

[murphy_p_t]

unfortunately, the precedent in the USA is ominous, considering FDR seizing gold back in the 1930s...hence the need for geographic diversification.

also, speaking with an attorney, when asked, he mentioned a bank safe deposit robbery (inside job) in the midwest. he stated that the bank worked hard to keep this hush-hush, for obvious reasons.

[fnord123]

unfortunately, the precedent in the USA is ominous, considering FDR seizing gold back in the 1930s...hence the need for geographic diversification.

also, speaking with an attorney, when asked, he mentioned a bank safe deposit robbery (inside job) in the midwest. he stated that the bank worked hard to keep this hush-hush, for obvious reasons.

Yep, legal changes, robbery, acts of god, etc., all can affect safe deposit boxes. They can also all affect goldmoney.com - the following is from their customer agreement:

We shall be relieved from Our obligations under this Agreement if and to the extent that We are unable to carry out all or any of Our obligations hereunder owing to:
Wars, civil commotion, vis major, acts of God, strikes, riots, lockouts, governmental controls or restrictions, non-availability of any equipment or telecommunications or computer systems or any other causes beyond the reasonable control of GoldMoney and Net-Gold; and/or