Bailment premiums

[Last updated February 2014]

Bailment service providers will store and transport – and often buy and sell – precious metals in ways that are tax-efficient and secure for their clients. We go into detail about bailment and other options in our Storage section.

In this section we look specifically at the buy/sell premiums that bailment providers charge. This is an area of potentially high costs for physical precious metal investors and one that is often over-looked.

Online bailment premiums

BullionVault, Euro Pacific, EverBank, GoldMoney, Gold Republic, and the Hard Asset Alliance are six companies that have brought the concept of precious metal bailment into the Internet age. Each of these has an elaborate online platform allowing for convenient online trading in physical precious metals. (Also, see our section on Storage costs for a comparison of safe deposit boxes and online bailment.)

The table below highlights the buy/sell premiums these services charge.

Company Gold Silver Notes
BUY/ASK PREMIUMS SELL/BID PREMIUMS BUY/ASK PREMIUMS SELL/BID PREMIUMS
BullionVault

(UK)

Order dependent. Max 0.7% Order dependent. Max 0.7% Premiums comprise markup to spot (0.2%) plus a trading commission (0.5%).
Euro Pacific

(St. Vincent and the Grenadines)

Order dependent. Max of 4.00% Order dependent. Max of 4.00%
EverBank

(USA)

+1% on cost to acquire for customer Not published +1% on cost to acquire for customer Not published
GoldMoney

(Jersey, UK Channel Islands)

Order dependent. Max of 2.74% (2.49% for USD purchases) 0% Order dependent. Max of 4.24% (3.99% for USD purchases) 0%
Gold Republic

(Netherlands)

Order dependent. Max 1.8% Order dependent. Max 1.8% Order dependent. Max of 1.8% plus VAT or 1.8% plus USD12/kg handling fee Order dependent. Max of 1.8% or 1.8% plus VAT Premiums comprise markup to spot (0.8%) plus a transaction fee (1.0%). Applicable VAT rate is 21%
Hard Asset Alliance

(USA)

1.5 to 2.29% for gold bars Not published As high as 23% for 1oz coins Not published

 

 

Full service bailment premiums

Full-service bailment fees structures can be complicated and unfortunately they are often quite opaque. The table below isolates the buy/sells premiums that are openly published by some full-service bailment providers. These fees are only part of the overall fee structure and service package. Investors wishing to frequently buy/sell should consider the online bailment services where these fees are significantly lower. See our section on Storage costs for further details on bailment costs.

Company Gold Silver Notes
BUY/ASK PREMIUMS SELL/BID PREMIUMS BUY/ASK PREMIUMS SELL/BID PREMIUMS
Amsterdam Safe

(Netherlands)

Transaction fee of 1.5 to 9.0% plus undisclosed markup on spot Will buy back at up to 100% of spot Transaction fee of 1.5 to 9.0% plus undisclosed markup on spot Not published Trading through either Amsterdam Safe or online dealer The Silver Mountain (both companies subsidiaries of Value8 NV).
BullionRock

(Guernsey, UK Channel Islands)

From 4% Will buy back own products for max 98% of spot From 16% on coins Will buy back own product for max of 98% of spot Zero VAT on silver stored in Guernsey
GoldCore

(Ireland)

3 to 4.5% Not published Not offered for bailment
Gold Made Simple

(UK)

Max 10%, but wide variation Will buy back undelivered items at guaranteed 98% of spot Not offered for bailment
Kitco Canadian Allocated Storage Program

(Canada)

From 2.5% Not published From 12% Not published
Miles Franklin Precious Metal Storage Program

(USA)

From 3.0% for coins, lower for bars Not published, but are willing buyers and “active market makers” From 9.0% for coins, lower for bars Not published, but are willing buyers and “active market makers”
Perth Mint Allocated Depository Program

(Australia)

2% plus A$1.00/oz 1% plus A$1.00/oz 2% plus A$0.10/oz  1% plus A$0.10/oz