On Friday 20th September, it was revealed that Glint, the gold trading app, had fallen into administration on the 18th September. In spite of the fact Goldex has a radically different business model and a much wider vision, we have always been aware that we share the same space; one where retail investors buy physical gold through an app – and whilst it is always sad to see such events unfold, we feel obliged to highlight in what ways we are different and why our users should never worry about the safety of their assets, both cash and gold, held at Goldex.
As such, we would like to address any potential concerns.
One of the first things we looked at when we were setting up Goldex was to make sure we could bulletproof our customers’ assets. It’s not a coincidence that one of our original co-founders is a senior lawyer at a top UK firm and that as CEO and co-founder, I have been a registered individual with the FCA for nearly 15 years. This is what we put in place to make Goldex customers’ assets safe from any potential creditors:
How does Goldex protect my money?
As per the Terms and Conditions when opening an account with us, we make it clear that every single penny deposited with Goldex is held in Trust by us. We are not the legal owners, we are the “trustees” of client funds. This means that in the event of insolvency, your money is safe from creditors.
Furthermore, we have a scrupulous and methodical approach to never mix customers’ money with that of the company’s. As a result, we operate with two separate UK banks: one bank for our customers funds’ and another one for the company’s monies. Simple and transparent.
Operationally, any client funds are deposited into accounts that are specifically and uniquely created for each one of our customers. These are their own “customer accounts” which nobody else can access to either deposit or withdraw funds.
How does Goldex protect my gold?
A requisite to the gold dealers that are part of the Goldex marketplace is to hold all Goldex gold in Trust for the company, too. All legal agreements signed with gold providers must clearly specify that they act as custodians of the assets. Should any of those gold providers file for liquidation, the Goldex assets (which are in effect those of its customers since Goldex does not own a single gram of gold) are fully protected against creditors.
In practical terms, this means all gold purchased on Customers’ instructions is held in trust on behalf of our clients, in secure vaults at each of the available market locations until our clients instruct us to sell. The firms providing the vaulting services act as safe custodians and include globally reputed names such as Brinks, Loomis International and MalcaAmit.
At the same time, all gold held by clients is insured up to 50% in excess of its market value as per the terms of the global insurance policies entered into with our Bullion Suppliers.
Why is this important?
The security and safety of our clients’ assets – meaning both their funds and their gold investments – has always been at the very core of our values as a company. That is why by openly declaring in our T&Cs that all client assets are held in trust we ensure their protection from creditors in any insolvency event.
Our approach to Compliance, AML and KYC procedures is strictly in line with our overall practice: we manage risk carefully and closely monitor any potential signs of fraud. We have always striven to apply high standards of corporate governance to ourselves and will never compromise when it comes to the basics of operating an investment business.
What if I have further questions?
We have a very capable Support team that will be more than happy to supply additional information or address any concerns you may have. As the CEO and co-founder, I am also always open to have a chat and hear directly from your personal experiences, frustrations, or fears around this latest event. Our door is open and as ever we will be fully transparent.
Please feel free to contact firstname.lastname@example.org – I will be personally watching the inbox closely together with our Head of Client Relations during the next few days.
A final word to assure you that no matter what, the whole Goldex team remains fully focussed on our vision to deliver the easiest, fairest and smartest way to invest in physical gold.
CEO & co-founder
Goldex Technologies Ltd.