Metal Accounts - Unallocated or Segregated and Allocated

Author: Ian Davis - Bullion Manager

Published: 14 Aug 2020

Last Updated: 4 Nov 2020

What Is A Metal Account?

There are two types of metal accounts with Chards:

  • Digital gold and silver - "unallocated metal accounts"
  • Vaulted gold and silver - "allocated and segregated metal accounts"

The only requirement is that you open an account with us and pass our due diligence checks that we are legally obliged to carry out. You can then access the website and your online account to top up products or digital balances with all your balances visible in your account area.

If you wish to purchase allocated and segregated metals, please follow this link to our vaulted storage page. If you wish to learn more about the various options please read on below.

Buy Digital Gold and Silver on Account

You can use the following widget to buy digital gold and silver on account right now at 1% premium over spot. Payment options include bank transfer, debit card, cheque and cash depending on the transaction value.

Metal Account Purchase

  Buy In Troy Ounces Buy In GBP
Digital Gold
Digital Silver
Prices based on the live metal price may fluctuate until your purchase is complete.

Digital Gold and Silver

A digital gold or silver account is commonly referred to as "unallocated silver account". This means you are purchasing a number of troy ounces of silver without specifying the design, form, manufacturer etc therefore paying low premiums, avoiding storage costs and any delivery charges for the time you hold the metal.

Digital gold and silver can be offered to customers wishing to pre-fund larger purchases or to invest in gold and silver before making a decision on what coin or bar to buy. Customers can even sell back to us and never take physical delivery.

Vaulted Gold and Silver

Vaulted gold and silver is offered to customers who wish to have specific products allocated to them and stored in their own secure box in our strongrooms. This option is preferred by many of our physical bullion customers as we can take the hassle and cost out of home storage and cover all items on our insurance which is via Lloyds of London.

This type of account is often referred to as "allocated and segregated gold and silver".

There is another variation on allocated gold and silver accounts and you can read more on our page on "paper gold". This option allows you to buy shares within a larger pool of physical gold - currently Chards do not offer this service as we believe the 2 options cover our investor need. If you do see value in this option please let us know! 

Benefits of Using Metal Accounts With Chards

Customer may find various uses for opening a metal account with us:

  • Pre-funding a larger future deal by making multiple smaller payments which is often referred to as dollar-cost averaging*
  • Treating the accounts as a savings account by making frequent deposits from surplus wages, savings or investments.
  • Gaining exposure to the metal market without incurring the costs associated with the purchase of a specific item, postage or storage. We will always recommend transacting into physical bullion as we believe this to be the superior choice when investing in metals.
  • Very low premiums - our digital gold and silver come in at a 1% buy premium and you can sell back to us at 100% of spot making the buy-sell spread a narrow 1%. For vaulted gold and silver, you pay the live premium on the day with 1 ounce gold coins prices starting from 1.8% and 1 ounce silver coins starting from 17.5%
  • We manage our whole inventory and storage facilities which are insured by Lloyds of London. There are no further third-party risks and the arrangement is a simple two-party agreement between you and a bullion dealer with over 55 years experience.

*According to Investopedia:

"Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals; in effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices. Dollar-cost averaging is also known as the constant dollar plan."

How Much Does It Cost?

We are very competitive on pricing and regularly carry out price comparisons of our services so if you do find cheaper options please let us know! Here is a summary of the various types of metal accounts and associated pricing:

Vaulted Gold

Live Buy and Sell Premiums

0% VAT

 

Storage Fees: 0.5% + VAT per annum

No minimum order 

Vaulted Silver

Live Buy and Sell Premiums

20% VAT on new

Low VAT on pre-owned

Storage Fees: 0.65% + VAT per annum

No minimum order

Digital Gold

Live 1% Buy and 0% Sell Premium

0% VAT

 

No storage fees

£10 / €10 / US$10 minimum order

Digital Silver

Live 1% Buy and 0% Sell Premium

20% VAT

 

No storage fees

£10 / €10 / US$10 minimum order

Using Your Metal Account Balance

You can use the balance of one or multiple accounts to transact into physical bullion and/or buy other services from Chards. In due course online customers will be able to use the balance as a payment option at checkout and in the short term we ask you call our team on 01253 343081 to arrange a deal.

At checkout your balances will be converted into a live monetary amount and you can use part or all of the balance as discount against a purchase. Please note the live value will be re-calculated at the final step of checkout and deducted from the total cost of the transaction and confirmed by a receipt and then an acceptance email once our team check the order.

Physical metal can then be shipped to your preferred delivery address or once again stored on site here in Blackpool and added top your account.

Can I sell My Metal Account Balance?

You can sell any metal you have on account back to Chards. Please review the table in "How Much Does It Cost" for more information and selling premiums. Alternatively, please call 01253 343081 and one of our team can provide more information.

Taking Delivery of Digital Gold and Silver

You can opt to take delivery of digital gold and silver by providing 30 days notice by email, telephone call or in person. If you require Chards to decide on a physical product, a delivery premium of 5% will apply as we spend time and resource arranging this. We would recommend you transact into lower premium secondary market bullion items as when these are in stock the premiums tend to be lower. Postage prices are applied on top of the delivery premium and you can follow this link to our delivery charges page. Again, please get in touch on 01253 343081 if you wish to discuss options prior to making a purchase.

Click the links to buy your digital gold and digital silver from Chards

Full Terms and Conditions

Full Terms of Sale for Physical Bullion - https://www.chards.co.uk/info/terms-of-sale

Full Terms of Storage - https://www.chards.co.uk/info/storage-terms-of-sale

Full Terms of Purchase (selling to Chards) - https://www.chards.co.uk/info/terms-of-purchase

Full Terms for Digital (unallocated) Gold and Silver - https://www.chards.co.uk/info/metal-account-terms

This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2020. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited.

We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.

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