Alan"s Money Blog

May 16, 2007

GoldMoney: Important new feature introduced!

This is a long read, but definitely worth it if you are or intend to become a GoldMoney account holder.


Dear GoldMoney Customer,

We are pleased to inform you of an exciting new
development. Beginning Sunday, 20 May 2007, it will be even
more convenient to buy and sell gold and silver through


We have opened Customer Segregated Funds Accounts for four
different currencies with our banks. Thus, you will be able
to deposit money into these segregated customer accounts in
US dollars, British pounds, euros or Canadian dollars, and
use this money to purchase gold and silver from GoldMoney.
When you decide to sell metal, the proceeds can be
deposited into these same bank accounts. Importantly, you
will earn interest on your deposit at very competitive
rates, and have 24/7 access to your deposit and your metal
through the Balances page in your Holding.


A new feature allows you to Add or Remove Funds from your
Holding, to easily facilitate the transfer of money between
GoldMoney and your bank account. Also, you can now save the
details of your bank account(s). So simply select the
account you want to use, rather than typing your bank
details each time you initiate a transaction.

GoldMoney accepts money transfers by electronic check (if
you have a bank account in the US) or bank wire. Once your
funds are received, the currency balance recorded in your
Holding is increased, enabling you to earn interest on your
money until you are ready to buy gold and silver.


1) A new way to use our electronic check feature

As before, you can use electronic checks to debit your bank
account in the US to pay for your metal purchases, or to
automatically receive your sale proceeds. But now you can
also write and receive electronic checks from the US dollar
Customer Segregated Funds account. So rather than leaving
money in your bank account while you wait to purchase gold
or silver, use electronic checks to deposit your money in
our segregated funds account and earn interest. Then buy
when the market price is right for you.

2) Purchases paid by bank wire

Presently when purchasing by bank wire, we need to receive
the funds within 2 business days for customers to 'lock-in'
the buying rate. Bank wire fees are costly and often
delayed, with the consequence that late orders would need
to be completed at a price different than what the customer
had expected to receive because the 2-day deadline was
missed, through no fault of the customer or GoldMoney. Our
new feature eliminates these problems.

Now, prior to placing a Buy order you simply wire funds for
deposit into the segregated funds accounts, and earn
interest on that money while you wait to purchase metal.

Similarly, you will now be able to sell your goldgrams and
silver ounces and receive the proceeds in US dollars,
British pounds, euros or Canadian dollars, which is
automatically deposited for you into the Customer
Segregated Funds account. The proceeds will be shown as an
increase to the currency balance in your Holding once the
Sell order is completed. But if you instead want to receive
the proceeds from your sale right away, simply 'click' the
appropriate instruction, and the money will be immediately
sent to the bank account you choose.

3) Earn interest on your currency deposit

You will earn interest on your currency balances in the
Customer Segregated Funds Account. There is no minimum or
maximum deposit. Interest based on your average monthly
balance will be paid monthly, regardless of the size of
your deposit.

The fee GoldMoney charges for this new service will reduce
the interest income you receive by 1/4th of 1% per annum.
Thus if the interest rate paid by our banks is 5%, the
interest income you earn on your deposit is 4.75% after
deducting the administrative fee. Interest rates are of
course subject to change, but the present interest rates
per annum after deducting the administrative fee are:
US dollar 4.18%
British pound 5.00%
euro 3.14%
Canadian dollar 2.75%


Our new segregated funds feature will save you both time
and money. Buying and selling will be easier and faster,
and you will not have to incur the costs of funds transfers
every time you place an order. And you can earn interest on
your currency deposit at competitive rates."

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