Thursday, June 18, 2009

My Swiss Gold

It is a good idea to read this write up about My Swiss Gold and what they do prior to any dealings with them.

It is prudent to do your own due diligence and find out as much about any gold dealer as possible before committing to any transactions with them.

Who are My Swiss Gold
My Swiss Gold is a registered website owned by NMG International Financial Services (NMG IFS), in Zurich, Switzerland. It is relatively new having been online only since the end of January 2009.

NMG international Financial Services was founded in 2000 as subsidiary of the NMG Group a financial Consulting firm with over 600 employees

Like any Swiss company, the NMG IFS is regulated according to Swiss law for financial intermediaries and audited regularly by the SRO VQ Funder supervision of the Swiss financial market authority.

How Does My Swiss Gold Work

Basically the NMG IFS is a gold dealer and gold storage custodian.

There are no certificates or etfs. It is a case of, ‘let’s get physical’ and all client holdings are stored in physical gold bullion. A client can come in anytime and take delivery of all or part of their gold holdings or even have it delivered to the location of their choice. There are no ‘borrowings’ on the gold so no delays in retrieving it if required. Each gold bar has a certified number recorded and it is stored in a private Swiss bank vault.

The storage includes insurance from a Swiss insurance company against such things as theft and natural disasters like fire and water for example.

Importantly it is regulated. According to Swiss law, e.g., bullion production and quality, customer identification and the confirmation of beneficial owner in accordance with anti-money laundering regulations audited from SRO VQF under supervision of the Swiss Financial Market authority FINMA. Customer identification and application processes with NMG International Financial Services in Z├╝rich according to Swiss law is required of course.

Also any gold trading and storage is done by selected Swiss private banks. There is no physical take out from vault without an identified beneficial owner being present with the certificate of ownership

The gold storage and financial records are also audited by Swiss auditors.

How to Buy Gold from My Swiss Gold
Online there is an application form which would need to be completed. This form is a pdf document and includes the usual information required to open any financial account including notarized identity instruments, such as passport, drivers licence etc.

Once My Swiss Gold has verified the information satisfactorily they then email you the instructions for funding. They only accept traditional bank wire, no checks.

After the funds have arrived they deduct any commission and fees and purchase with the balance, gold on your behalf and store it in the vault. They then confirm with you the fact of purchase and storage so you know your gold is deposited in the bank vault.

Sometimes there are remaining funds after the transaction is completed (due to variations in the gold price and purchase price etc) and so these funds are credited back to your bank account.

My Swiss Gold offer one kilo and twelve and a half kilo gold bullion bars. The price varies from day to day of course but is fixed by the bank the day of the transaction.

Selling gold is a simple matter of completing a liquidation form and sending it to NMG International Financial Services, Zurich, Switzerland.

International Financial Services then sell the gold on your behalf, deduct any fees and transfer the balance to your nominated bank account.

You can also pick up gold personally from the bank containing the vault of gold by making the appropriate arrangements .

How Much Does it Cost
The commissions and fees break down as follows:

Set-up and purchasing commission: prices vary depending on the investment amount but will range between 1.5-2.5 percent The annual storage fee is a flat 0.75 percent per year and is paid for 2 years in advance. If you take out or sell your gold prior to that time you will get a pro rata refund.

In case you sell your gold or pick it up physically at the bank, they will also charge you a 1.5 percent commission on the asset value when it’s sold. In case of physical delivery they will arrange delivery for you anywhere possible at your cost.

So the costs are fairly modest, especially compared to buying gold coins or bullion from a mint or traditional gold dealer. The additional cost is storage but in view of the security and insurance this is also fairly cheap.

Last Word on My Swiss Gold

Gold is usually quoted and traded in troy ounces. This is different to the imperial or avoirdupois ounces used for most other products. In view of this potential confusion My Swiss Gold quotes and trades gold bullion in kilograms only.

This is an easy way to buy gold and have it kept securely for a modest sum. There are no security, shipping or storage issues to be concerned with and one can remove or on sell the gold at any time. It does not state specifically the minimum purchase of gold bullion on the website but it does seem likely that one kilogram would be the minimum given that My Swiss Gold only deals in one and twelve and a half kilogram bars.