Updated on 1 February 2019
The Kitco Allocated Storage programme is a service offered by Kitco that allows you to purchase precious metals from Kitco and have them stored on a segregated and allocated basis (i.e. where you have title to specific coins/bars) in highly secure storage facilities in Hong Kong. Allocated Storage account holders can add to their precious metal holdings, sell off all or part of the holding or withdraw their holdings at any time.
Back to topWith the Kitco Allocated Storage programme, you can have segregated precious metal holdings stored securely on your behalf in Hong Kong. The programme offers the following specific advantages:
To open a Kitco Allocated Storage account, you must first open a regular Kitco account. You will have to sign our Precious Metals Storage Agreement, retain a copy for your records and return the original to us for processing. Our customer service representatives will guide you through the process.
Please call (852) 2827 7800 to open an account and join the Kitco Allocated Storage programme.
Back to topCurrently, the Kitco Allocated Storage programme is limited to precious metal products purchased directly from Kitco. You can divert all or part of any precious metal purchase that you make at Kitco to your Kitco Allocated Storage account. However, we cannot accept into the programme any product that you have purchased and that has already been shipped to you. The programme also does not accept precious metal products purchased from any other bullion dealer/supplier.
Back to topPrecious metals held in Kitco Allocated Storage accounts are stored in highly secure storage facilities located in Hong Kong. All precious metals held in your Kitco Allocated Storage account remain your property at all times. Kitco will ensure that your precious metals are specifically identified (allocated) and physically separated (segregated) at all times from coins, bars and metals in any form that belong to any other person or entity, including Kitco.
Back to topA secure storage facility that is located in Hong Kong will be chosen for you by Kitco. You cannot specify or choose an exact location for having your precious metals stored.
Back to topFor security purposes, we do not allow anyone to visit any storage facility to view their Kitco Allocated Storage account holdings without an appointment. An administrative fee of US$ 100 per hour will be charged.
Back to topThe following costs are associated with the Kitco Allocated Storage programme:
1. Storage fees
The storage fee structure for the Kitco Allocated Storage programme is as follows:
| Metal | Quantity of metal stored |
|---|---|
| Gold, Platinum, Palladium, Rhodium | US$ 0.3 (or in the equivalent amount HKD) x (metal oz holding in inventory at each month end plus the withdrawn metal oz in that month) |
| Silver | US$ 0.01 (or in the equivalent amount HKD x (metal oz holding in inventory at each month end plus the withdrawn metal oz in that month) |
| * | minimum storage fee per month: US$ 25 (or in the equivalent amount HKD) |
Storage fees are calculated at the end of each month or at the time of account closing.
2. Administration fee
A non-refundable annual administration fee of U.S. $200 (or the equivalent amount in HKD) will apply to each account upon its opening and thereafter upon the commencement of each subsequent year of storage.
3. Transfer fee
A transfer fee of U.S. $15 (or the equivalent amount in HKD) will apply to each transfer into or out of Kitco Allocated Storage Account.
4. Transportation and pick-up fees
You can choose to either have your products delivered or picked up. If you opt for delivery, transportation fees shall be charged. Transportation fees will be quoted on a case-by-case basis. If you opt for self pick-up, a fee of U.S. $30 (or the equivalent amount in HKD) will be charged for every visit you make to pick up your products.
All fees and charges must be paid within 30 days of invoicing.
Back to topKitco will provide you with a detailed monthly statement and an invoice that will include a breakdown of all the fees and charges owed for the previous month.
Fees and charges owed can be paid by the following methods:
| Hong Kong customers | Customers from all other countries |
|---|---|
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If the funds on your account are insufficient to cover your dues, you will have to pay us by another method. All invoiced amounts must be paid in full within thirty (30) days of the invoice date, after which interest will be charged on them at the rate of eighteen per cent (18%) per annum, until they are paid in full.
| * | Call (852) 2827 7800 for our bank wire information. Please note that intermediary administrative fees are often deducted from the amount you transfer by bank wire. To ensure that Kitco receives the expected amount in full, please send enough additional funds to cover such deductions (your bank should be able to advise you on how much this amount might be). |
To purchase any eligible precious metal products and have them transferred to your Kitco Allocated Storage account, call (852) 2827 7800.
Back to topTo sell any or all of the precious metals held in your Kitco Allocated Storage account, call (852) 2827 7800.
Back to topYou can withdraw precious metals from your Kitco Allocated Storage account and have them delivered to you by a Kitco-recognized secure transport provider. You can also pick them up yourself.
To arrange a delivery or pick-up, you must give five days’ prior notice to Kitco. Each shipment is fully insured and requires a signature upon delivery. Delivery can be expected within two to 10 business days of shipping. Tracking numbers for shipments are available upon request.
Service fees are applicable for each shipment and pick-ups are charged per visit. Please call (852) 2827 7800 for further information or to request a withdrawal.
Back to topYou can track your holding in several different ways:
1. Every month
2. Every year
3. Anytime
Your Kitco Allocated Storage account is internally audited several times a year by Kitco. Once a year, an external audit is also conducted by independent third party auditors. You will receive a free written report of this independent external audit. Your report will confirm the amount of precious metals held in your Kitco Allocated Storage account.
Back to topYes, you can request to receive more than one independent third party audit report per year. However you will have to bear the cost of the additional audits as they are not included in your storage fee.
Back to topYes, all precious metals held in Kitco Allocated Storage accounts are fully insured by Kitco. You do not have to pay any additional insurance charges. The cost of insurance is included in your storage fees.
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