Bullion Funder and Knox Nuggets
What fees apply to Knox Nuggets or Bullion Funder?
The short answer
The Bullion Funder terms set three charges: a 2% administration fee on any amount cashed out, a 2% cash-handling fee if you pay in cash, and storage at 1% of the coin's value per month if you leave a paid-up coin with Knox for more than three months. No account, conversion or delivery fee is set in the terms. The other costs sit in the price: the difference between the buying price (1% of the website bullion price per nugget) and the cash-out price (the gold spot price plus 4.5%), and any premium in the website price. Ask Knox for a worked example before you buy.
Where costs can arise
- Premium in the price: each nugget is 1% of the bullion price on Knox's website (clause 2.12), and that price may include more than the value of the gold.
- Spread: the cash-out price is a separate figure, the gold spot price plus 4.5% (clause 9.1), which may be lower than the price you paid.
- Administration fee: 2% of the total amount cashed out (clause 9.1). No periodic account fee is set in the terms.
- Storage: free for three months after the coin is paid for, then 1% of its value per month (clause 7.1.2). Insurance while the coin is in Knox's vault is under Knox's own policy, limited to R1 million (clause 12).
- Conversion: no charge is set in the terms; the coin is collected in person (clause 8.3.2).
- Cash payments: a 2% cash-handling fee applies if you pay in cash rather than by EFT or debit order (clause 5.3).
Why the total cost matters
A product with low headline fees can still be costly if the premium or spread is wide, and the reverse is also true. A practical way to compare is to work out how much you would pay for a full coin's worth of nuggets, and how much you would receive if you cashed out straight away.
What depends on Knox policy
Knox may change the terms, including the charges, by email notice to the address on your registration form; changes apply to future purchases (clause 23.8).
What to do next
Ask Knox for the current fee schedule and the Bullion Funder terms, read them before your first purchase and keep a copy. Compare the total cost with other ways of buying gold, such as buying a coin outright, bearing in mind that the right choice depends on your own circumstances.
How Knox handles this
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
