When you're investing for your future, there's a lot to consider. Not only do you need to decide where to allocate different assets, but you also need to determine which investment brokers and companies you work with. You want to make sure that you work with a trustworthy dealer.
Goldmoney is popular because of its convenience and versatility. But the company's reputation has been plagued by poor reviews across a host of different websites. Customers have a lot to complain about, it seems.
We've taken a deeper look at what exactly Goldmoney offers, along with what specific complaints customers have lodged against them.
Important! Before we go on with this review...
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About the Company
Goldmoney has been in business for two decades. They merged with a company called BitGold in 2015, allowing them to offer payments for transactions in gold. The founders of the company are Joshua Crumb and Roy Sebag.
When you invest, you get to own a portion of the company's precious metals holdings. You can also use the technology to convert gold into currency and vice versa. This allows you to complete transactions like online shopping or bill payment.
In addition, jumping between different currencies is a good way to take advantage of changing exchange rates. If you pay attention to how the markets shift on a daily basis, you can maximize your returns.
The company's Holding system is a unique feature in the precious metals industry. It helps to simplify the process of owning precious metals. You don't have to worry about storage or maintenance, which makes it ideal for new investors who are just getting used to the game.
Depending on the type of account you have, you might also be able to pay for business transactions in gold. This includes sending invoices to clients, making purchases from vendors, and receiving payments from customers.
To open an account, you must purchase at least one gram of gold. You can choose to own a portion of the gold in one of six different vaults, strategically located all over the world. If you end up investing a lot with the company, you can also invest in metals like silver and platinum.
The website is clean and easy to navigate. There's a Goldmoney Kids program that teaches children how to invest.
Fees and Services
There are a variety of fees that you can expect to pay with your transactions.
If you buy or sell precious metals on the market, you will need to pay 0.5 percent of the transaction's value, regardless of whether you're the buyer or seller. With the limited selling option, the fee goes up to 1 percent.
If you want to exchange your precious metals, you'll have to pay a fee of 0.75 percent. So if you bounce between different currencies to maximize returns, make sure you take this extra cost into account.
If you want to exchange the vault your gold is stored in, you have to pay 0.5 percent of the exchanged holdings. In addition, you'll pay a monthly fee for your storage, no matter whether you have any transactions or not.
The precious metals themselves are marked up past market value, but not very much. In fact, all of the markup ratings are less than one-tenth of one percent. So you can expect to pay the highest fees on transactions, not on your initial purchases.
If you refer people to Goldmoney, you can earn commissions on their future purchases. Commission rates vary, but some people receive payments as high as 25 percent.
Goldmoney is a legitimate company that works with accredited custodians. You can be confident that your holdings are secure. But they also have customer service issues and business practices that give us pause.
The biggest problems seem to have occurred when the company changed ownership.
The original owner of the company sold it to new management. Unfortunately, everything seems to have gone downhill from there. The company had many glowing customer reviews when it first began, but since the change of management, there's been a deluge of negative feedback.
There's a lot more customer feedback available for this company than for many others. They have an international reach, and thousands of investors have used them to get started with their portfolios. They're one of the main go-to companies for people just starting out.
That means that there are thousands of reviews across websites like Trustpilot, the Better Business Bureau, and Sitejabber. And unfortunately, a huge chunk of them are deeply negative.
Seven Ripoff Reports have been filed against the company. That's an absurd number for a business to have.
One report says that the company had no problem taking their money during the initial investment process. But then they locked the person out of their account without warning. There had been no change to the person's login info. Without any phone support available, the person had to email, and their response was not adequate.
The person finally managed to get in touch with a representative over the phone to try to get back into their account. The company rep asked them for a huge amount of personal information to confirm their identity. Once the person answered all the questions, they were told they needed to provide a phone bill as proof of ID.
This unnecessary process frustrated the customer so much that they chose to close their account. But they weren't allowed to do that without having their login. The company wouldn't give them the login without their phone bill.
The second report comes from someone whose account was opened in 2016. They linked their checking account and allowed for regular deposits. After their account had accrued quite a bit of money, the company told the customer that they needed new ID verification. The customer had already provided this.
Despite this, the company insisted, so the customer sent the information. But they were told that the information wasn't sufficient because the quality of the pictures wasn't good enough.
Frustrated, the customer told the company to stop the automatic payments. They were told to use the website's Customer Service tab. But the company had locked the customer out of their account due to "insufficient credentials," even though they had previously verified their identity.
The customer tried several more times to verify their identity with clearer photos and documentation. The company refused each one. They filed a complaint. No one responded. They talked to a reporter. Mysteriously, one of the company managers paid attention then.
But the ordeal wasn't over. The customer had had to close the checking account to prevent the automatic payments. Without banking information, the company said they didn't know how to get the money back to them. A wire transfer was refused by the customer's bank. A check finally had to be sent by mail. By that time, six months had gone by.
The third report was also related to account access. The individual had set up two-factor authentication that required a cell phone login. But when they changed cell numbers, they lost the ability to log in to their account.
When the customer reached out for help, the customer service team gave them an exceedingly long list of documentation they needed to "prove" their identity. There was no way for them to provide it. They had no way of accessing their money, and the company did not seem interested in helping.
The fourth report alleges that the company blatantly stole 17,000 dollars from them for a predatory fee. The original account had 43,000 dollars in it. After moving 20,000 dollars out of the account, the customer was told that the company didn't know where the rest of the funds were.
The company then told the customer that their money had been taken due to fees. With the current fee structure, it makes no sense that the total would come out to 17,000 dollars.
The fifth report states that the company makes false claims about their investment capabilities. They say they have the expertise to pick stocks that win 80 to 90 percent of the time. This consumer found that only 20 to 30 percent of their stocks rose.
The sixth report says that the customer was returning after several years away. Unfortunately, they seem to have come back to the new management. They made a request to have more than 1,000 dollars in gold paid out through a bank wire transfer. In addition, they provided multiple different forms of identification.
The company blocked their request because they said there was an issue with one of the customer's old accounts. However, that account was not related to the current transaction at all. It didn't hold any of the existing funds. The person gave the company their login info for the blocked account, but never heard anything back.
The seventh report appears to be related to a situation unrelated to Goldmoney. It comes up in the Goldmoney search because the author mentioned the company's name.
Better Business Bureau
The company is not accredited with the BBB. And their average customer review is 1.33 stars out of 5. Almost everyone has given the lowest possible rating for their service. In addition, thirty-one complaints have been filed in just three years.
Of the complaints, 24 were related to issues with a service or product. Five were related to billing and collections. One was related to delivery problems, and one had to do with advertising.
One of the most recent complaints states that the person tried to transfer their funds out of their account, but the transfer was paused. Goldmoney representatives refused to respond to questions. After several days, the person called the company. They were told it was an issue with the wire transfer.
The person clarified their bank details and thought their transfer would be processed. Two weeks later, the transaction was still processing. Representatives from the company would not respond to the customer's messages.
After the customer filed this report, Goldmoney reached out to make sure the transfer went through. But it is disheartening that the person had to file a public complaint for anything to happen.
Another complaint states that the person tried to transfer their gold into Australian currency for an Australian bank account. But the company wouldn't let them. The customer couldn't reach any customer service reps. They had wanted to remove their funds before the new storage fees took effect.
Goldmoney did reach out and resolve this complaint, similarly to how they resolved the previous one.
A third complaint was filed by another person who wanted to withdraw their funds prior to the new storage fees. They sold their assets at a loss and asked to have their money transferred. The company said the wire transfer had been completed, but the customer's bank had never received the funds. However, the customer updated later to say the money did arrive.
Another customer had yet another problem with transferring funds out of their account. They liquidated their gold and transferred the currency to their bank through a wire transfer. Their account said the transfer had been confirmed. But weeks went by without the money appearing in the bank.
Goldmoney responded to say that because of an increase in the number of transfers overall, their system was bogged down. Many customers were experiencing transfer delays because of this. They stated that the money had been sent and that the customer needed to be patient.
At first, the customer was displeased with this response. But they came back a few days later to report that the money had indeed reached their bank account.
The same seems to have happened to another person filing a complaint. A wire transfer took a long time to clear, leading the person to believe it had never been made. Goldmoney responded with the same information. There has not been any response from the customer to indicate whether they ever received their money.
Goldmoney is an interesting company that provides a service no one ever has before. They make it easy to pay for things with gold, transfer assets between different currencies, and make investments.
However, ever since the company was sold to new owners, the management has gotten much worse. People have repeatedly stated that the company stalls when they want to cash out their accounts, asking for unnecessary ID and sometimes locking people out of their accounts entirely.
Though this could have been a great service, we can't currently recommend it. There are just too many negative reviews, and the process seems like too big a hassle.
Although we do think that Goldmoney is a solid company, we believe that there are better companies out there to make your investment with.
Or, continue with Goldmoney...