Who is IB Global Investments (IBGI)?

IBGI is a wholly owned subsidiary of the IBKR Group that operates as a market maker, facilitating physical unallocated gold transactions on behalf of IBLLC for its clients. IBGI facilitates these transactions by taking delivery of gold warrants from exchange-listed futures contracts. Neither IBLLC nor IBGI engages in proprietary trading, and the inventory of warrants IBGI holds to facilitate client purchases are hedged with short futures contracts.

What does the term “unallocated” gold mean?

When you purchase unallocated gold, you own an undivided, fractional interest in the physical gold that IBGI has allocated to IBLLC. In other words, the warrants, which reference gold bars that are specifically identifiable by number, are held in the name of IBLLC who, in turn, records clients’ ownership interests on its books and records (similar to how stock is held in “street name”).

How does the gold get “allocated”?

The gold remains “unallocated” until the account holder takes physical possession of it via the delivery process.

What is the trading symbol for unallocated gold?

The symbol is USGOLD.

What is the minimum order size for unallocated gold? 

The minimum order size is 1 ounce.

What is the minimum price increment for unallocated gold?

$0.001

What is the settlement time for an unallocated gold transaction?

Transactions settle in 2 business days.

Does IBGI or IB LLC add a mark up to physical gold transactions?

No. There is no markup or hidden price spreads added by IBGI to IBLLC or IBLLC to the client. IBLLC acts as a riskless principal, transacting with the client at the same price it transacts with IBGI, and charges the client a commission for the transaction, which is disclosed on our website.

Does IBKR allow short sales of unallocated gold?

No; only purchases are allowed. Clients seeking to profit from falling gold prices may obtain this exposure via futures contracts, options on futures contracts and/or short sales of various gold ETFs.

Does IBKR provide any loan value for unallocated gold positions?

No. Unallocated gold will be subject to a 100% margin requirement. This means that IBKR will not allow you to borrow money using unallocated gold as collateral. Similarly, your fully-paid unallocated gold positions cannot be used as collateral to purchase or maintain securities positions.

Is unallocated gold SIPC protected?

No. SIPC only offers protection for securities and cash held in a securities account.

In what forms of gold is delivery offered?

Clients may convert their unallocated gold and take physical delivery of one of the following products:

• Gold Bullion Bar (.999) 1 kg
• Gold Bullion Bar ISO Accredited (.9999) - 1 oz
• Gold Bullion Bar ISO Accredited (.9999) - 10 oz
• Gold American Eagle Coin - 1 oz
• Gold American Buffalo Coin - 1 oz
• Gold Canadian Maple Leaf Coin -1 oz

Delivery will be transacted through FideliTrade Incorporated, a full-service precious metals investment company that specializes in delivery and custody services. See https://www.fidelitrade.com/

Is partial delivery offered?

Yes, you may take delivery of only a portion of your unallocated gold position.

How do I request delivery?

Clients requesting physical delivery must submit their request via the Message Center using the topic "Physical Gold Delivery". The request should include the number of ounces and the form of delivery. IBKR will then confirm the cost and fees and, once approved by the client, instruct FideliTrade to deliver. Please note that delivery is only supported to the account holder’s address of record.

What is the cost of taking delivery (and do I pay a premium)?

The cost of physical delivery of US Spot Gold is the sum of:

• The differential between the spot price of gold and the cost of the physical product.
  • Physical metals products are provided by Fidelitrade Inc. Estimated cost of the physical product can be found on their website.
  • The cost of the product is the indicative ASK price displayed by FideliTrade.
• A $25 delivery fee
• A $500 IBKR processing fee

What trading permissions are required?

The exchange and permission bundle is United States Metals.

What are the eligibility requirements for obtaining IBMETAL trading permissions?

US Spot Gold is only available to legal residents of the United States. US Spot Gold is not available to legal residents of Arizona, Montana, New Hampshire, and Rhode Island.

Clients must also meet the following requirements

• Investment Objective: Trading, or Speculation, or Hedging, or Growth (Cash account)
• Financials: Must meet Futures financial requirements
• No minimum years trading experience
• No minimum trades
• Available in all account types (CASH, MRGN, PMRGN)
• Not available for UGMA/UTMA accounts
• Not available for IRA accounts
• FA/Broker Sub accounts: master account (FA or Broker) must be approved for Commodities trading