Frequently Asked Questions
WHAT IS A BULLION ACCOUNT?
Bullion accounts (sometimes referred to as “Metal Accounts”) operate like any normal bank account, excepting that the accounts are held in, and denominated in ounces of gold and/or ounces of silver. Bullion accounts allow the account holder to purchase bullion at the metal spot price on any given day, plus a small administration and management fee. In most cases, buying gold in other forms, such as coins or bullion bars, command a much higher premium over the metal spot price than what can be achieved by buying through a bullion account.
WHAT DOES ALLOCATED MEAN?
When AFE Allocates bars to a client, this means the clients’ holdings are identified with a specific list of bars showing the unique bar number in the clients online account statement.
WHY ESTABLISH A BULLION ACCOUNT?
One of the most common reasons that clients choose AFE’s bullion accounts, is to allow for geo-political diversification in their bullion holdings. In the words of King Solomon: “Put a portion of seven and eight throughout the land, for we know not what trouble may arise”. Another important factor to consider, is ease of liquidation. For more information on geo-political diversification, ease of liquidation, and the benefits of such arrangements, please contact us to speak with one of our bullion account specialists directly.
WHO CAN APPLY FOR A BULLION ACCOUNT?
Any individual or entity may apply for client account, including natural persons, companies, corporations, natural and registered trusts, or other entities.
WHAT IS THE COST OF ESTABLISHING AN ACCOUNT, AND WHAT ARE THE FEES FOR OPERATING THE ACCOUNT?
Initial account application and establishment is free from charge. Fees are charged on a transaction basis and will vary depending on the quantity of gold or silver at the time of of transaction. For an explanation of this fee range, please contact us directly to speak with one of our specialists.
WHAT IS THE MINIMUM AMOUNT REQUIRED TO CREDIT MY BULLION ACCOUNT?
For bullion accounts, AFE has a minimum account guideline of $50,000 USD. As an alternative to traditional bullion account funding methods, AFE is pleased to offer our “Gold Savers” and “Silver Savers” programs. Many clients choose to treat this as a regular savings account, and will use a credit card or debit card to credit their bullion account with an amount of just a few hundred dollars each month.
WHEN I HAVE PRECIOUS METALS IN AN ANGLO FAR-EAST ACCOUNT, DO I ACTUALLY OWN THE METALS?
YES, when AFE credits your account with gold and/or silver, you have full outright ownership of those precious metals. The concept of this is a bit different than a traditional banking arrangement, where when you supply your funds to a bank, you are actually no longer the legal owner of that money. The bank is allowed to do what it pleases with the money such as lend it to other customers, so long as the bank returns your money to you upon request. With AFE, your gold and silver are simply held by AFE acting as your custodian – this is known as a “Bailment” agreement- and means you are the full legal owner of your metal. AFE may not lend, lease, leverage, or encumber your metal in any way.
WHERE IS GOLD AND SILVER IN THESE ACCOUNTS HELD?
Anglo Far-East uses only the most reputable, accredited private vaulting companies and is at all times managed under our strict custodial governance. The vaults are primarily located in Switzerland, and importantly, safely and securely store your precious metals outside the commercial banking system. As these vaults are not owned, managed, or controlled by banks, your precious metals completely avoids the counter-party risk that can accompany storing your metals with a traditional bank.
WHAT PERSONAL INFORMATION AND IDENTIFICATION IS REQUIRED TO ESTABLISH AN ACCOUNT?
AFE conducts routine KYC (KnowYour Client) procedures, similar to opening an account at banks you may be familiar with. This will include personal identification, beneficial interest and source of funds, etc. Disclosure of client information is subject to our strict privacy policy. Account approval is solely at the discretion of AFE.
HOW DO I FIND OUT MORE ABOUT OPENING AND OPERATING BULLION ACCOUNTS?
To apply for a bullion account follow the NEW ACCOUNTS link at the menu of any page or click HERE. You may also contact us to speak directly with a bullion account specialist for personalized assistance and answers to your important questions.
HOW CAN I BE SURE THAT THERE IS GOLD IN THE VAULT TO COVER THE GOLD THAT I OWN?
Anglo Far-East operates under strict internal and external governance. At all times there is a minimum of 100% gold and silver in the vaults to cover all client claims. Full details on AFBC’s corporate governance is available by following our GOVERNANCE link or click HERE
GOVERNANCE IN BRIEF
AFE retains the services of an independent 3rd party Trust Company. There is no cross-ownership or cross-directorship between AFBC and the Trust Company. The Trust Company provides several important functions in AFE’s bullion custodial governance. The Trust Company is counter-signatory over bullion vaults. No access can be made to bullion vaults without the authorisation and signatures of both AFBC and the Trust Company. This is important to your safety, as it prevents any single party, including AFE itself, to remove metal from the vaults without a signature of the Trust Company. AFE utilizes the vaults of accredited members of the London Bullion Market Association, and all bullion is insured to a full 100% of its current market value.
HOW CAN I KNOW MY PERSONAL RECORDS AND DEALINGS WILL BE KEPT PRIVATE?
Information security and client privacy is one of the highest priorities of AFE. We maintain strict corporate policy and procedures to insure the privacy and security of our client records. These practices ensure that your records will not at any time fall into the hands of unauthorised third parties, and include;
1) Strict non-disclosure, non-information sharing policy. At no time will your identification or account records by made available to non-affiliated third parties.
2) A blend of international jurisdictions that strictly protect client privacy by law – See INTERNATIONALLY BASED
3) Leading edge technology and encryption systems – See SYSTEM AND INFORMATION SECURITY
Management and Staff: Our thoroughly screened staff understand the responsibility that comes with managing client’s personal information, and are committed to protecting and upholding our client’s complete right to full privacy.
HOW MUCH SHOULD WE OWN IN PRECIOUS METALS?
It is generally our recommendation that you should own somewhere in the vicinity of 5% to 20% of your total net worth in precious metals. By net worth we mean your unencumbered, freehold, net worth.Everybody’s situation is a little different. That percentage should also depend on factors such as your personal short-to-medium term outlook for the future, your perceived future earning capacity, your age and other factors.
IS IT BETTER TO OWN GOLD AND SILVER IN THE FORM OF COINS OR A BULLION ACCOUNT?
Either method of ownership has advantages over the other.
COINS
Bullion coins allow you to own gold and silver in a defined, small form. Coins are instantly accessible and tradable should the immediate need arise, making them the ultimate financial catastrophe insurance. However, due to the manufacturing (minting and fabrication) and shipping costs, purchasing gold and silver in the form of coins is considerably more expensive than bullion accounts. This added margin is usually lost should you decide to resell those coins ahead of a financial catastrophe. As with any valuable, there are safety and storage issues to be considered.
BULLION ACCOUNTS
The primary reasons to use bullion accounts is to achieve geo-political diversification in your holdings, as well as ensure you have easy access to markets when you are ready exit your metals positions. One thing that some fail to think through, is how, where, and when they will sell their metal if they take physical delivery, and the discounts that may have to be taken on value to do so. AFE clients are able to liquidate some or all of their holdings at will, with a simple encrypted message from anywhere in the world. AFE will take sell orders, liquidate metal into cash using AFE’s institutional access to global markets, and wire the funds to your choice of bank account. This flexibility and ease of liquidation provides a sense of security, being able to access emergency capital from anywhere in the world. Bullion accounts still provide the account holder with full outright gold and silver ownership, and also provide several advantages over owning precious metals in other forms. Due to the lower initial fees involved, owning precious metals in your bullion account means that you can buy and own more gold and silver for your investment. Your bullion is professionally managed by security vault specialists and fully insured to its current market value.
WHAT IS THE MAIN DIFFERENCE BETWEEN PRIVATELY ISSUED AND GOVERNMENT ISSUED BULLION COINAGE?
Under the currency or coinage Acts of almost all nations, the government (and/or central bank) at all times directly owns the coins and notes issued in that country. This means that if you purchase a bullion (gold or silver) coin issued by government, you are only the BEARER of the coin, and never the outright owner. The issuing government owns the coin. Should the government decide to recall that coin, which they can do at any time they wish, they will pay you for the face value of the coin, and not its true metal value. Governments have a long history of recalling bullion coinage when their economies head into rough times, a recent example in the western world being 1933 in the US.
When you purchase non-legal-tender, privately issued coinage, you are the outright owner, not just the bearer. You now have outright ownership of bullion coins of a fixed and defined weight and purity, which are freely exchangeable for other goods or services in the free-market, and cannot be recalled by an issuing government.
WHAT ARE THE ADVANTAGES OF AFE OVER THE BIG BANKS THAT OFFER GOLD ACCOUNTS AND STORAGE?
INDEPENDENT VAULT STORAGE AND GOVERNANCE: Increasingly, research and analysis now in the public domain, indicate large short positions and highly fractionalised bullion holdings on the books of large bullion banks. Many market analysts and commentators fear future systemic failure in the bullion industry, putting at risk bullion holdings of bullion service providers utilizing the bullion banking industry for the storage of their clients bullion holdings. AFE’s independent vaulting and strict governance fully protect and insulate its client’s from this type of market failure. By using private vaults that have no association to banks, AFE is able to offer its clients a means of privately, safely, and securely storing wealth that is not at risk should there be some form of disruption in the banking or financial markets. The peace of mind that comes from knowing this is perhaps one of the top benefits of being an AFE client.
100% BULLION BACKING & GOVERNANCE: Client Bullion Accounts are at all times backed by a minimum of 100% gold or silver bullion. Bullion holdings held on behalf of bullion account holders are independently audited and verified to confirm an a minimum of 100% bullion backing, and are further protected by an Independent Third Party Custodian.
OUTRIGHT OWNERSHIP: AFE bullion account holders have OUTRIGHT and COMPLETE ownership of an unecumbered, actual and defined amount of physical bullion.
With many bullion equity and investment schemes, the shareholder owns a beneficial interest (or shares) in a company, investment trust or equity, which inturns owns physical bullion (most times this bullion is stored by institutional bullion banks – see Independent Vault Storage above). The value of the shareholder/investor’s shares is determined by the value and security of the company’s bullion holdings. Owning shares or a beneficial interest in a company is not the same as OUTRIGHT ownership of physical gold and/or silver.
SECURITY & SAFETY: The operation of Bullion Accounts is designed to fully protect the account holder and their bullion holdings. Safety features have been designed to provide the greatest level of security, while maintaining the individual account holder’s privacy, and ease of account dealings.
IS IT POSSIBLE TO TAKE PHYSICAL DELIVERY?
Yes. AFE offers clients the option to take delivery of your serialized gold or silver bars. Clients are responsible for all costs of delivery, including any applicable taxes, transport, security, insurance, and customs duty. Once a clients bars are transferred into the custody of the clients designated agent, AFE disclaims all liability for the bars being delivered.
ACCESS TO THE PROFESSIONAL MARKET
Bullion Account clients are part of a large group of precious metals investors and owners managed by AFE, and are therefore able to take full advantage of “large scale” cost savings associated with buying, vaulting, insuring and reselling of their gold and silver bullion in large quantities. AFE deals only in LBMA “Good Delivery Bars” of 400 troy oz. fine weight for gold, and 1000 troy oz. for silver. These bars are the defacto standard for gold settlement amongst nations of the world, central banks, and large institutions.
SECURE ONLINE BUY OR SELL
Bullion accounts allow the client to securely, rapidly and privately transact physical gold or silver through the security of online encrypted electronic lodgment of instructions.
