Bullion Funder and Knox Nuggets
When can I convert Knox Nuggets into a physical Krugerrand?
The short answer
Once your account reaches the full purchase price of your chosen bullion, which is 100 Knox Nuggets. Under the Bullion Funder terms the coin may only be checked out at that point; Knox then holds it in its insured vault for up to three months while you collect it in person by appointment, with your ID, proof of residence and a signed Bill of Sale. No conversion charge is set in the terms, but storage beyond three months is charged at 1% of the coin's value per month.
What conversion means
Conversion is exchanging a balance of nuggets for a physical coin. A 1 oz gold Krugerrand is struck from 22-carat gold and contains one troy ounce of fine gold. Once the coin is handed to you, you hold a specific physical asset rather than an account balance. 100 Knox Nuggets make up the full price of one 1 oz gold Krugerrand, or of any other bullion product you choose from Knox's range.
How conversion generally works
- Your account reaches the full purchase price of the coin, 100 nuggets (clause 8.1).
- You make an appointment to collect, and confirm your identity with your ID and proof of residence.
- No conversion charge is set in the terms. If you leave the coin with Knox for more than three months, storage at 1% of its value per month applies (clause 7.1.2).
- You sign the Bill of Sale and collect the coin in person; from that point the coin is yours and at your own risk (clause 11).
- Your nugget balance is reduced by the number converted.
What depends on Knox policy
Under the terms, collection is by appointment during office hours and by you personally, with a valid ID or passport, proof of residence and a signed Bill of Sale (clause 8.3.2). A representative may also collect the coin on your behalf if they bring your written instruction, a power of attorney and their own ID. The coins are tested in front of you and you sign a collection form. The terms do not say whether a coin is set aside for you before you convert, which coin you receive or what happens to any nuggets left over, so ask before your balance reaches the full price. You can collect the coin or have it delivered. Once your balance reaches 100 Knox Nuggets, Knox notifies you. You then confirm when you would like to collect the coin or how you would like it stored, and whether you will be continuing your Knox Nugget account.
What to consider and what to do next
- Ask whether the coin will be a current-year or mixed-year Krugerrand, and in what condition.
- Decide where you will keep the coin once it is yours, and check your insurance.
- Keep a record of the conversion for tax and estate purposes.
- Confirm the current conversion process with Knox before your balance reaches the required number.
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.
