Why should I buy precious metals through Bullion Custodial Services Inc. instead of going to the bank?
Bullion Custodial Services Inc. offers you the simplest, most convenient and cost efficient way to purchase, store and sell your investment grade Good Delivery Standards bullion bars of gold, silver and platinum. Banks typically do not offer storage facilities for your bullion. This would require that you then store your bullion at home or in a safety deposit box. Either way your bullion is at risk and usually uninsurable. Once taken out of the bank, your bullion may require re-assay in order for you to be able to sell it. Because Bullion Custodial Services Inc. stores your bullion in a certified LBMA vault thus guaranteeing that the Chain of Integrity is not broken, the provenance of BMG BullionBars is assured and your bullion is completely liquid meaning it can be instantly sold without the need to re-assay.

Should I be purchasing coins, certificates or bullion bars?
That depends on how much bullion you need. Coins are appropriate for small levels of protection whereas Good Delivery Standards bullion bars are traditionally held to preserve significant amounts of wealth. Traditionally precious metals coins are more expensive per ounce to purchase than the larger bullion bars. They usually measure one ounce or less in weight and significant premiums or bar charges may be incurred. You may also be required to pay a Sales Tax for your coin purchase depending on your jurisdiction.

Bullion certificates are very common today however most people don't realize that the certificate is not actual bullion but a proxy for bullion. All you own is someone else's promise to pay the value of the bullion to you. This is the basic nature of a certificate. You cannot convert certificates directly into bullion without first paying bar charges or fees, and most certificates allow the issuing bank to pay you the cash value of the bullion certificate instead of issuing actual bullion. Paper certificates defeat the purpose of owning the actual bullion as there is no guarantee that there will be bullion available when you want it most.

In order for bullion to work as an effective hedge for you, it must be allocated ownership of the physical bullion in your name. BMG BullionBars offers you direct ownership of fully allocated "Good Delivery Standards" bars of bullion.

Are ETFs or Central Fund of Canada a better way to own bullion than actually purchasing the physical bullion?
Both the precious metals ETFs and the Central fund of Canada (CEF) can be viewed as exchange traded vehicles that track the price of bullion. They are useful for speculation. You are not actually purchasing the bullion nor can you ever redeem your shares for physical bullion. In times of economic stress both the CEF and ETFs will behave in the same manner as stocks or equities and will trade at a discount to the spot price of the underlying metal as was demonstrated by Central Fund of Canada during the October 1987 market plunge.

There are other risks involved with ETFs that include lack of transparency, lack of answerability and possible asset exposure due to the fact that the bullion may not be fully insured. It is highly recommended that, prior to investing, you become familiar with the risks involved with these trading vehicles by reading the risk disclosure statements contained in their prospectus. These problems, amongst others, would put your assets at risk when you need them most and would invalidate the very reasons for owning bullion as a hedge in the first place.

Are there risks involved in purchasing bullion?
All investments involve an element of risk - bullion is no exception. The value of bullion is affected by many economic factors, including the current market price and the perceived scarcity of the precious metal, the current demand and general market sentiment. Other factors such as the bullion futures market can affect the price of physical bullion, sometimes significantly. Because bullion can reduce as well as increase in value, an investment in bullion may not be suitable for everyone. Since all investments, including bullion can decline in value, you should have a good understanding of the precious metals markets, and have adequate cash reserves before considering an investment in physical bullion.

What are "Good Delivery Standards" bullion bars?
Good Delivery Standards bullion bars are cast by a small group of metals refiners accredited by the professional bullion dealing communities in London (London Bullion Marketing Association or LBMA), New York Commodities Exchange (COMEX) and London Platinum Palladium (LPPM). They are accurately assayed and guaranteed always 99.5% pure gold or better, 99.9% pure silver or better and 99.95% pure platinum or better. In the case of gold and platinum, the market trades the bar's pure metal content, known as fine ounces, so you don't pay for the impurities whereas silver includes impurities in the weight of the bar.

From the day they are manufactured, Good Delivery Standards bars are kept in bullion vaults recognized and monitored by the gold dealing community. The same standard applies for silver and platinum. Whenever the bullion bars are moved, a record is maintained showing continuous storage through trusted hands. This audit trail or chain of integrity, guarantees the bar's authenticity and becomes key to assuring the liquidity of the precious metal. Taking delivery of the bullion and storing it at home, or even storing in a safety deposit box, does not confirm the provenance of the bar. This could then require re-assaying the bar prior to selling it back into the gold dealing community.

Because the provenance of the bullion is verified when it remains in the certified vault facility, you can sell your BMG BullionBars without the need to re-confirm their purity - this greatly reduces the time required to sell the bullion and reduces the costs related to a sale.

Good Delivery Standards bullion bars tend to be large and can vary in weight within a specified range. Bullion Custodial Services Inc. LBMA Good Delivery Standards gold bars usually weigh roughly 400 ounces troy (12.44kg), and the COMEX "Good Delivery Standards" gold bars weigh roughly 100 ounces troy. Whereas (LPPM) Good Deliver Standards platinum bars can range from a low of 1 Kilogram (32.151 troy ounces) to a high of 6 Kilograms (192.904) troy ounces of platinum.

What size of bullion products can be purchased from Bullion Custodial Services Inc.?
We offer five products in total. We have gold bars in three sizes: one kilogram, 100 ounces, and 400 ounces. We also offer 1000-ounce silver bars and 50-ounce platinum bars. All the bars are Good Delivery Standards bars.

How are these bars priced?
BMG BullionBars are priced at roughly 2% above spot price, which can be described as the price of the most recent trade on the New York Mercantile Exchange, plus a dealer sales charge. (Includes bar charges and delivery to the vault)

How do I purchase BMG BullionBars?
BCS Authorized Dealers purchase BMG BullionBars on behalf of their clients through our on-line bullion ordering processing website. BCS Authorized Dealers submit an order on behalf of their client in a manner very similar to a broker purchasing stock for a client… they submit a limit order by price-per-ounce for the metal. BCS then obtains the most current price from its bullion vendor in New York, places the order and informs the advisor if their limit order was met. Individual investors cannot purchase BMG BullionBars directly, but can either encourage their own financial advisor to register with BCS to become a BCS Authorized Dealer or simply contact BCS directly to locate the nearest BCS Authorized Dealer.

How does my advisor determine the price?
Your advisor does not determine the price. He obtains the current market price by consulting the on-line order processing form where updated bullion prices are posted. He then recommends a reasonable limit price to you which is typically 4% above the current market price.

Are there any sales or VAT taxes payable when I buy or sell the bullion?
In Canada there are no taxes payable on the purchase of bullion. The GST does apply to the ongoing storage fee. You may have to pay a sales tax if you take delivery or transport the bullion to a jurisdiction that requires such tax to be paid. You will be responsible to pay for any sales or Value Added Tax (VAT) tax payable in your jurisdiction. You should consult with your tax advisor for definitive answers in the area of taxes.

Where is the bullion stored?
We offer insured storage services for BMG BullionBars at The Bank of Nova Scotia in Toronto, Canada, a Canadian chartered bank and member of the London Bullion Marketing Association through its Scotia Mocatta division.

How can I be assured that my precious metals are really in the vault?
Your metals are always stored in the LBMA certified vault owned and operated by the Bank of Nova Scotia. The bank issues a monthly report to Bullion Custodial Services Inc. that records bars added or removed from the vault and details a complete audit trail of the bar inventory. Bullion Custodial Services Inc.'s auditors,  review all bar lists and annually reconcile the vault holdings.

How can I prove that I own the BMG BullionBar I just purchased?
As soon as you have transacted your purchase, you will receive an email reconciliation from your BCS Authorized Dealer giving you details of the cost of the bar purchased and the balance (if any) in your BCS account.

Within a week after your purchase has been transacted, Bullion Custodial Services Inc. will issue your bullion deed that will identify your specific BMG BullionBar by weight, purity, refiner and serial number. Each BMG BullionBar has its own unique deed that serves to prove ownership of your allocated bar(s).

Does my BMG BullionBar depend on the solvency of Bullion Custodial Services Inc, The Bank of Nova Scotia, or the dealer from which I bought the BMG BullionBar?
Absolutely not! You have clear title to your BMG BullionBar as evidenced your the bullion deed and you have the unfettered right to take delivery of your bar at any time.

Would a creditor of BCS or the bank have any hold on my gold, silver or platinum?
No. Your BullionBar is your property and is allocated to you only and without any lien. It is not the property of BCS or the Bank of Nova Scotia, nor is it vulnerable to creditors of either.

What are the charges associated with a BMG BullionBarsTM purchase?
BMG BullionBars purchasers should expect to pay roughly 2% above the current market price plus dealer sales charge as indicated on the Client Application Form. In addition, purchasers who opt for storage services must prepay storage fees for one year, which are calculated at 1% plus dealer service charge (also shown on the Client Application Form) based on the Net Asset Value of the bar.

Where can I buy BMG BullionBars?
BMG BullionBarsTM are available from participating BCS Authorized Dealers. Your own financial advisor can apply to become an BCS Authorized Dealer. You can also contact us for a referral to an approved dealer in your area.

How do I sell my BMG BullionBars and what does it cost?
Simply contact your BCS Approved Dealer and identify the BMG BullionBars you want to sell then send in the corresponding bullion deeds to Bullion Custodial Services Inc. Once your bars have been confirmed your dealer will contact you and execute the sale transaction based on your limit price. Because your BMG BullionBars are stored within the vault and ensures the Chain of Integrity, your sale is transacted immediately. You will be charged a transaction fee of 1% of the sales price of you bar.

Where do you keep the personal information I send to you?
Your information is kept at our administrative office in Markham Ontario, Canada and BCS will endeavor to keep all of your personal identity information completely confidential. We will not release this information for marketing purposes. An electronic copy of your documents is made and held encrypted on our secure servers. These servers are physically isolated and cannot be accessed over the Internet by anyone. Redundant backups are store offsite in a secure facility.

Who can be given access to my personal information?
Your personal information will be kept strictly confidential and will not be disclosed without your express consent except for when Bullion Custodial Services is required to provide information pertaining to you in order to ensure compliance with any form of legal process. For more information, please see the BCS Privacy Policy.