Bullion Funder and Knox Nuggets
Do I own physical gold when I buy Knox Nuggets?
The short answer
No, not while you are still funding the coin. Under the Bullion Funder terms, each nugget is a part payment towards the purchase of a specific coin, and ownership passes to you only once the full price has been paid and you have signed a Bill of Sale. Until then you hold a contractual right against Knox, not a share of specific or pooled gold.
Three ways a gold product can be structured
- Allocated: specific, identified gold is set aside in your name. You own it, and the custodian holds it for you.
- Pooled or unallocated: gold is held in a general pool for many customers. Depending on the terms, you may have a share of the pool or only a claim against the provider for a quantity of gold.
- A promise to deliver: you pay towards a future purchase, and ownership passes only when a coin is delivered or allocated to you.
Why the structure matters
With allocated gold, the metal generally remains yours even if the provider gets into financial difficulty. With an unallocated holding or a promise to deliver, you may rank as a creditor of the provider, with no direct claim to specific metal. The structure also affects insurance, audits and what happens to your holding when you die.
What the Bullion Funder terms say
The terms describe a payment into the account as the intangible representation of a part payment for the purchase of a coin (clause 2.12) and provide that ownership of goods remains with Knox until all sums owing have been paid in full (clause 10.1), with risk passing when you sign the Bill of Sale and take ownership (clause 11.1). They make no provision for gold to be bought, allocated or pooled against a part-funded account, and the insurance in the terms applies to bullion held in Knox's vault after it has been paid for, not to a part-funded balance (clause 12.1.1). Of the three structures above, this is a promise to deliver.
When you hold a coin outright
Once the full price has been paid, you are entitled to the coin: Knox holds it in its insured vault for up to three months, and you collect it in person by appointment with your ID, proof of residence and a signed Bill of Sale (clause 8.3). From the Bill of Sale, you hold a specific coin at your own risk (clause 11.1). Until then, your rights are those set out in the terms. Consider asking an attorney to review the terms if the amount involved is significant to you.
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.
