What is a Gold Certificate
Gold certificates are issued as proof of gold ownership. They have been used since the 17th century and continue to exist today; however, not all contemporary gold certificate programs are reputable.
Gold certificates could be considered the world's first paper currency. Goldsmiths in London and Amsterdam originally used them to verify customers' gold bullion deposits. It then became increasingly common for the certificates to be handled in lieu of cash and without the hassle of physically moving the gold units themselves.
In the United States, gold certificates circulated as money until 1933, when the federal government banned private gold ownership to prevent hoarding during lean times. Currently, gold certificates can be obtained from banks or pool programs in Germany, Switzerland, Australia, and the United States.
These certificates are attractive to investors because they save owners money on trading, transporting, storing, and insuring tangible gold.
The Reconciliation Issue
The intricate appearance and expertly detailed nature of gold certificates lend themselves an air of great value. But don't be duped by a beautiful appearance alone. It's difficult to substantiate the precise worth of the stock behind a certificate without confirming the actual amount of gold in the vault.
Unfortunately, deliberate and accidental reproduction of certificates occurs, reducing their worth and credibility.
OneGold promises regular, accurate data for every investor via cryptographically secure blockchain technology or via a 3rd party verification. At any time you can log into your account and view your account holdings and review your portfolio's value.
Gold Certificates and Unallocated Gold
OneGold doesn't endorse unallocated gold because that places the risk of, as well as the responsibility for, allocation costs squarely on the investor.
Be aware that gold is usually unallocated in a certificate program. If the program allows for the conversion of unallocated to allocated gold, it's often at considerable expense to cover inflated fabrication and storage fees. Unallocated gold is a liability on your balance sheet and leaves you vulnerable to the suppliers' insolvency.
How to Start Gold Investing with OneGold
With a deep understanding of precious metals unmatched in any competing partnership, APMEX and Sprott came together with a shared vision for the evolution of precious metals ownership. OneGold is the result of the knowledge, experience, and resources of these two globally recognized partners.
- Create a Free Account at OneGold.com
- Choose between our selection of investment-grade precious metals.
- Low premiums & tight spreads.
- Purchase using Bitcoin, Check, Credit Card or connect your Bank Account.
- No need to wait on funds clearing, you can “Buy Now, Pay Later”.
- Fully allocated and segregated investment grade precious metals.
- Annual storage fees are Silver .30% & Gold .12%
A guide to investing in gold.
A guide to investing in silver.