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Jan 31st 2007
Following up with the blog entry yesterday on E-gold Debit Cards to weigh the pros and cons of using plastics, we’re gonna touch on the E-gold exchangers that out exchanges your gold and wires directly the money into your bank account.
Pros
- Exchanger on the market usually charges an out exchange fee of usually 2% of the dealt amount. (So you pay about additional 4 - 5% on getting the gold, and now you have to still pay for switching back to your cash huh! hmm ). It’s still cheaper than using a debit card in anyway.
- There are more choices on exchanges as compared to debit cards at this point.
Cons
- The feds might keep tab on your account if there are big wires coming in. These wires will be reflected on your bank statements, and so if you’re sensitive to such stuff, this is a bad option.
- To trust an exchanger with your money might be a problem, no matter how reputable they are (look at GoldAge, and I’m not sure did customers get refunded when the feds actually raided their office). A good bet is on the list at GDCA, but there will always be still cases that an accredited exchanger might fail you.
- You’ll have to wait for a few days normally for the wire to hit your bank account. Unless you’re urgently need your funds (which might reach you in 24-48 hours), a premium of about $50 must be paid either to the bank on your own or deducted from your gold.
- Rates on your local bank when out exchanging to a local currency (if your account is not dollar based) usually aren’t attractive.
Summary:
There’s lesser anonymity when you’re using any exchangers to get your funds in your bank account but bank wire options via exchangers are definitely more economical when it comes to exchange rate.
My personal choice will be using exchangers to debit cards anytime. A few good choices of reliable exchangers: IceGold, TheGoldshop, LondonGoldExchange
Popularity: 2% [?]
So how do you deal with the bank trails, and the documentation of your transactions ?
I mean how do you report it ?
Hi Gaby, the amounts which i transfer are usually negligible. Have a few accounts to spread around the transfers if they’re big. But if you’re the type that feels this is important, a debit card would be better.
I request a check from my exchanger TBE if I need the money to pay bills, doesnt matter how much. I am not happy with bank wires. No need to worry about reporting, but thats another topic