Direct Bailment
- What is Direct Bailment?
- How do I bail metal over to G&SR?
- What coins are acceptable?
- What about coin premiums?
- I just want to sell some coins I've been holding -
will G&SR buy them?
- What is Direct Bailment?
- Direct Bailment is the most direct method of adding to your e-metal
balance. It simply means sending precious metal coins to G&SR for credit to
your e-metal Account.
Important note...all the metal backing e-metal in circulation is held
fungibly. e-metal is accounted only by weight. This means that regardless of the
type of coin(s) sent to G&SR, only the precious metal content determines
credit to your account. If, for example, you send 10 1-oz gold Eagles, your
account is credited 10 oz, just as if you had sent 10 oz of bullion, or 10 1-oz
Krugerrands.
The type of coins sent is relevant only for determining cost basis - for
use in eventual capital gains calculations. See discussion of
cost basis
- How do I bail metal over to G&SR?
- You must first have an e-metal Account.
- Contact us, either by:
- e-mail to cashier@gold-reserve.com
. Send a PGP-encrypted message (using Chief
Cashier's public key) specifying the type and quantity of specie you wish to
send. (Please remember to send your public key as well). Alternatively, (if for
some reason you do not have PGP), send plaintext e-mail with your phone number.
- leave a voicemail message at (800) 909-6590.
We will contact you
with detailed delivery instructions.
It is adviseable to ship registered mail, return receipt requested. We can
not be held liable for any metal which we have not signed for.
- What coins are acceptable?
- Type
Examiner
screen lists all specie types (and quantities) in current inventory. These
types are definitely acceptable. If the type of specie you have does not appear
on our list we'll be glad to discuss it on a case-by-case basis. We are not
knowledgeable in rare coins or other specie types which command a high market
valuation due to numismatic considerations.
Condition
We do not
formally grade condition. We will make a subjective judgment regarding
condition.
G&SR reserves the right to reject all or part of a shipment for any
reason or without cause. You are responsible for the costs of shipping metal to
G&SR. If we refuse your metal, we will pay the cost of returning it to you.
- What about coin premiums?
- G&SR automatically records a cost basis for every increment to your
e-metal Account balance. This cost basis is subsequently used in capital
gain(loss) calculations for transactions which draw down (decrement) your e-metal
balance. The cost basis for e-metal issued as a result of direct
bailment = metal content per coin × number of coins × MTC Exchange
rate × factor for
coin premium. If you send
coins which command a high premium, your cost basis for that increment will be
higher, which will reduce the capital gain (or increase the capital loss) you
eventually realize.
- I just want to sell some coins
I've been holding - will G&SR buy them?
- We are always in the market for specie. Contact us as
for Direct Bailment. If we are interested, we will offer a bid at the time of
initial contact. This bid is conditional upon our inspection and acceptance.
If we decline your specie, based on unacceptable condition or any other reason
we will return it and reimburse your shipping costs.
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