I am considering a long-term investment in MMTC-PAMP digital gold, potentially for more than 5 years. Is my gold still safe after the initial free storage period ends, and what happens?
Yes, your MMTC-PAMP digital gold remains completely safe and secure even after the initial 5-year period. The safety of the underlying physical gold does not change. The only change is that the free storage offer expires, and you will be required to choose from a few options, including paying a small fee for continued storage.
The Safety of Your Gold Remains Unchanged
My financial advisor was very clear on this point. He explained that the high-security, fully insured vaulting of your physical gold and the oversight by the independent security trustee are permanent features of the product. These safety measures continue to protect your investment for as long as you hold it, well beyond the initial five years.
The Introduction of a Small Storage Fee
I was discussing this with a friend who had just crossed his 5-year investment mark. He confirmed that he received a formal notification from MMTC-PAMP well in advance. One of the options presented to him was to continue storing his gold digitally, just as before, by agreeing to pay a small annual storage fee. He found the fee to be a very small percentage of his total gold’s value.
Your Other Options: Selling or Taking Delivery
The notification my friend received also clearly reminded him of his other choices. If he did not want to pay the storage fee, he could choose to sell his digital gold at the live market price and get the cash credited to his bank account. Alternatively, he could opt to request physical delivery of his gold in the form of coins or bars by paying the standard making charges.
What Happens If You Don’t Choose an Option
The terms and conditions state what happens if a user is unresponsive to these notifications. If the free period expires and the user does not select an option or pay the storage fee, MMTC-PAMP has the right to sell the gold on the user’s behalf. They will then transfer the proceeds from the sale to the user’s registered bank account.
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