Updated on February 17, 2014

 

Kitco Pool Accounts

 

·           What is a Kitco Pool Account?

·           Is there a minimum amount of Pool that I must buy or sell?

·           Why am I being charged an administrative fee to buy or sell Pool?

·           When is a deposit of funds required to purchase Pool? Do I need to pay to confirm a price?

·           Are my Pool holdings insured?

·           How can I exchange my Pool ounces for precious metal bullion products?

·           What are fabrication fees?

·           Can I request that my Pool holdings be held as a specific product?

·           When could my Pool holding or the proceeds from my Pool sale be withheld?

 

What is a Kitco Pool Account?

 

Kitco Pool Accounts, or unallocated accounts, are precious metal deposits in which you do not have the title to specific (allocated) bars or coins. Instead, as a Pool Account holder, you own a share of a pool of precious metals held by Kitco on your behalf. In exchange for your Pool holding, you can request and receive any precious metal bullion product available in our online store, upon the payment of the applicable fabrication, shipping and insurance charges.

 

Pool may consist of precious metals in any form whatsoever, including but not limited to bars, coins, and scrap metal. Precious metal deposits which form Pool holdings are specifically identified and kept physically separate at all times from precious metal deposits belonging to Kitco. They are not part of Kitco’s assets. These precious metal deposits, while not segregated by individual ownership, belong entirely to Kitco’s customers who are Pool holders and are available to these customers at any time. Pool is stored by Kitco in secured depositories in various locations.

 

Back to top

 

Is there a minimum amount of Pool that I must buy or sell?

 

No, there is no minimum amount of Pool that can be bought from or sold to Kitco.

 

Back to top

 

Why am I being charged an administrative fee to buy or sell Pool?

 

Kitco Pool Accounts represent the most cost-effective way to hold precious metals. To offset a part of the administrative costs we bear to offer this service, we apply an administrative fee to all purchases and sales that involve Pool (including the purchase or sale of Pool in combination with physical precious metals). This fee is:

 

·           $14.99 for purchases or sales conducted over the telephone or in person

·           $8.98 for purchases or sales conducted online

·           Charged in USD for U.S. dollar purchases and sales

·           Charged in CAD for Canadian dollar purchases and sales

·           Charged in the EUR or GBP equivalent of the applicable U.S. dollar amount for Euro or British pound purchases and sales

 

Back to top

 

When is a deposit of funds required to purchase Pool? Do I need to pay to confirm a price?

 

Under certain conditions, you need to deposit funds to purchase Pool and confirm a price. The deposit requirements depend on your country of residence (or the location of your principal place of business) and the total value of your open transactions*, as follows:

 

Within the United States or Canada

 

Total value of all open transactions*

Price confirmation requirements

Up to $20,000

No deposit required, but a valid Visa or MasterCard credit card number must be submitted

Over $20,000 and up to $100,000

You may be required to provide a valid Visa or MasterCard credit card number and are required to have 15% of the total value of all open transactions in cleared funds on your account or in cleared Kitco Pool holding

Over $100,000

You may be required to provide a valid Visa or MasterCard credit card number and are required to have 25% of the total value of all open transactions in cleared funds on your account or in cleared Kitco Pool holding

 

All other countries

 

Total value of all open transactions*

Price confirmation requirements

Up to $100,000

You may be required to provide a valid Visa or MasterCard credit card number and are required to have 15% of the total value of all open transactions in cleared funds on your account or in cleared Kitco Pool holding

Over $100,000

You may be required to provide a valid Visa or MasterCard credit card number and are required to have 25% of the total value of all open transactions in cleared funds on your account or in cleared Kitco Pool holding

 

*

For the determination of collateral requirements, the value of all open transactions (outstanding/incomplete purchases and sales) is considered in addition to the value of the current purchase. Sales of Kitco Pool are not included in open transactions. The value of your open transactions is considered in U.S. dollars if your current purchase is in U.S. dollars. For purchases in other currencies, your open transaction values are considered in the equivalents of U.S. dollars, rounded up to the nearest $1,000.

 

A credit card cannot be used to pay for a purchase. Your credit card will only be used to confirm your price and, at Kitco’s discretion, to recoup any market loss charges and other fees that may become payable.

 

Funds on account are considered cleared when there are no holds placed on the funds. A cleared Kitco Pool holding is one that is fully paid for and against which no claims are outstanding.

 

Back to top

 

Are my Pool holdings insured?

 

Precious metals held as Kitco Pool are stored by Kitco in secured depositories in various locations and are insured under specific insurance policies provided by each secured depository against loss, damage and destruction.

 

Back to top

 

How can I exchange my Pool ounces for precious metal bullion products?

 

To exchange your Pool ounces for precious metal bullion products, call 1 877 775-4826. Note that you will be charged fabrication, shipping and insurance costs when you exchange Pool holdings for precious metal bullion products.

 

Back to top

 

What are fabrication fees?

 

Fabrication fees represent the costs associated with manufacturing precious metal coins and bars. When you buy Kitco Pool, fabrication fees are not levied, since the holdings are purchased as unallocated units. Fabrication fees are only levied (along with shipping and insurance charges) when you convert your Pool holdings into precious metal bullion products.

 

Back to top

 

Can I request that my Pool holdings be held as a specific product?

 

No, you cannot request to have Pool holdings in specific products. However, you can opt to convert your Pool holdings into any specific precious metal bullion product of your choice normally carried by Kitco, upon the payment of applicable fabrication, shipping and insurance charges.

 

Back to top

 

When could my Pool holding or the proceeds from my Pool sale be withheld?

 

If a portion of your Pool holding is being used as collateral for any purchase or sale, it will be withheld until Kitco receives the full payment for anything you buy or until we physically receive any metal that you undertake to sell. If you cancel your purchase or sale and, as a result, owe Kitco any recompense for market loss, we may set off the sums owed against the cleared funds on your Kitco account.

 

If all or part of the Kitco Pool that you are selling is already held as collateral for an outstanding purchase or sale, you can:

 

·          Receive the entire proceeds of your Kitco Pool sale if you maintain the required collateral amount as funds on your account, OR

·          Have the amount required as collateral deducted from the proceeds of your Kitco Pool sale and transferred to the funds on your account and receive the remainder.

 

Whichever option you choose, the withholding of your Pool deposit and/or the funds on your account will cease as soon as Kitco is paid in full for the purchase or receives the metal for the sale for which the collateral was being held.

 

Example transaction

 

For example, you may make a purchase/sale worth $200,000 and use $50,000 in cleared Kitco Pool to confirm your price. If you then wish to sell this Pool holding before Kitco receives payment/shipment for the original $200,000 purchase/sale, you may do so only if you maintain at least $50,000 in cleared funds in your account or cleared Kitco Pool until payment/shipment is received by Kitco for your initial purchase/sale. To do so, you may sell your Kitco Pool and leave the funds in your Kitco account.

 

Back to top