Precious metals from the Royal Mint using DigiGold ?

[BillabongDom]

Does anyone have any experience buying precious metals from the Royal Mint using DigiGold or any other similar service where it is kept in their vault ?

I am from the UK but living at the moment in Spain and looking into the best way to buy some Gold or Silver. I'm new to the precious metals world.

What do you think ?

Thanks !!

 

[TutoredSoup232]

Haven't used digigold myself but I wouldn't do it. You're investing in big gold bars of which you are allocated a percentage along with whoever else has invested. You don't technically own any gold and I don't believe the RM ever allows physical delivery. Your money is also not protected by FCSC, if the worst were to happen you'd lose it all. The only way of getting out of the scheme is selling it back to the mint. Essentially you're at their mercy and can't shop around for the best prices. Their Little Treasures scheme is a bit better as you can take physical delivery but personally I still wouldn't do it. 

You're basically paying for the illusion of gold that "belongs" to loads of different people which you're also forced to pay storage fees for and will never see it or be able to take it anywhere with you 

[Cogload]

I have some digigold as it was an easier way to get myself into the market as a complete novice on a very limited budget. Thew drawback is that you are tied to the Mint which acts in it's own mysterious ways and the trading platform is more than a bit clunky. 

It is expensive - however it is relatively quick to liquidate when required. 

You do own title to the gold but it is part of a bar and others also own part of that bar. And it is non convertible of course. 

As the above writer as pointed out there is no recourse to the FCSC (as is made clear in the tiny smallprint) however the sole shareholder is Her Majesty's Treasury although that is not a guarantee they won't pull a fast one.