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Post by zzr600 on Apr 9, 2015 18:14:17 GMT
The recent listing Managed Portfolio (CSP175) contains many gold items (bracelets, rings etc) identified as gold but with no hallmark. How does MoneyThing ensure these items are genuine and that the carat value is accurate?
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Bagman
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Post by Bagman on Apr 9, 2015 18:34:00 GMT
Ed gave us this answer back in Feb..
Feb 13, 2015 at 10:56am
Post by MoneyThing on Feb 13, 2015 at 10:56am
Morning,
Just following up from my first post in reference to the query regarding Hallmarking.
I have just received a response back from our Partner:
"In the event of default, any non-hallmarked items would be taken to the assay office for hallmarking before being disposed/retailed."
Hope this answers your question.
Kind regards,
Ed
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 9, 2015 19:14:42 GMT
He is relying on the expertise of his partners & they are putting their money where their mouth is, so to speak, by guarenteeing to redeem all loans on term. Do MT actually have sight of the items (photo excepted)?
As a result, IMHO, it would only become relevant if the partner went bust & MT had to realize the assets themselves
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manue
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Post by manue on Apr 9, 2015 19:41:02 GMT
Talking of having site of all the items and in light of the recent diamond heist in Hatton Garden, are all the gold/jewellery items secured in secure vaults and insured against fire, theft, act of god etc..
There are now quite a lot of items to keep track of and more coming day after day. How do MT keep track of it all ?
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Post by zzr600 on Apr 9, 2015 20:12:53 GMT
Ed gave us this answer back in Feb..
Feb 13, 2015 at 10:56am
I have just received a response back from our Partner:
"In the event of default, any non-hallmarked items would be taken to the assay office for hallmarking before being disposed/retailed."
Hope this answers your question.
Kind regards,
Ed
Not really. This is saying that non-hallmarked items may be of any value or gold purity, down to negligible gold content, so valuations for non-hallmarked items may be widely off the mark. In which case, why accept them for loans?
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Investor
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Post by Investor on Apr 9, 2015 23:05:27 GMT
Talking of having site of all the items and in light of the recent diamond heist in Hatton Garden, are all the gold/jewellery items secured in secure vaults and insured against fire, theft, act of god etc..
There are now quite a lot of items to keep track of and more coming day after day. How do MT keep track of it all ? There is a line in all the loan agreements that states something along the lines of "your article will not be insured by the pawnbroker whilst it is in pawn.......you may wish to sort out your own insurance". I believe the item only becomes owned by the broker if the terms of repayment are not met, effectively a default.
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Bagman
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Post by Bagman on Apr 10, 2015 1:41:42 GMT
Ed gave us this answer back in Feb..
Feb 13, 2015 at 10:56am
I have just received a response back from our Partner:
"In the event of default, any non-hallmarked items would be taken to the assay office for hallmarking before being disposed/retailed."
Hope this answers your question.
Kind regards,
Ed
Not really. This is saying that non-hallmarked items may be of any value or gold purity, down to negligible gold content, so valuations for non-hallmarked items may be widely off the mark. In which case, why accept them for loans?
I am sure that the pawn brokers that take this stuff in for loan security are not mugs, and would test any unmarked gold with a simple touchstone test. www.gia.edu/gia-news-research-bench-tips-09
A few years ago a customer at one of my pubs told me that he had taken an unmarked Turkish gold necklace in to be pawned and they tested the purity with this rub on the stone and acid method, he got more than he expected as it was 22ct instead of the 18 he ct thought it was.
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manue
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Post by manue on Apr 10, 2015 19:20:04 GMT
Talking of having site of all the items and in light of the recent diamond heist in Hatton Garden, are all the gold/jewellery items secured in secure vaults and insured against fire, theft, act of god etc..
There are now quite a lot of items to keep track of and more coming day after day. How do MT keep track of it all ? There is a line in all the loan agreements that states something along the lines of "your article will not be insured by the pawnbroker whilst it is in pawn.......you may wish to sort out your own insurance". I believe the item only becomes owned by the broker if the terms of repayment are not met, effectively a default. So effectively we're investing in tangible asset loans which we can't touch, see or feel with no insurance against fraud or theft, all based on trust with people we don't know.
I don't think any investors will have taken out insurance for the loan parts they have invested in. (why would we)
I really did think that this type of asset based investment was relatively low risk with LTV's @ 50% the only real risk was weather the platform went bust, I now think the real risk is in the asset as it can disappear quite easily. Surely the pawn brokers must insure the items for the owners or do they pawn at their own risk? Seems to be a lot of loop holes for parties to shirk their responsibilities.
I'm thinking now we really do risk our hard earned cash, no doubt one day a fraud or theft will happen, we'll just have to see how we deal with it.
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oldgrumpy
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Post by oldgrumpy on Apr 10, 2015 19:54:17 GMT
So, Ed! What if the Hatton Garden Crew comes and filches all the jewellery pawned in exchange for MT(and/or our) money. Where is the loot kept, and is it insured? And have the local rozzas been given their "encouragement" to respond if the alarm goes off? Who loses out if it is nicked?
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Post by MoneyThing on Apr 11, 2015 8:25:56 GMT
Morning,
My apologies for not getting a chance to jump on here sooner.
I can confirm that all assets that are with the Cash Shop are securely stored and insured at the valuation figure as well as all assets that MoneyThing lend on directly are also securely stored and insured.
The facility that I manage has a 6 minute armed response time, all staff (including myself), have been trained by ex Flying Squad with respect to an armed attack and tiger kidnap.
(Also no false alarms recorded to mitigate the armed response.)
Kind regards,
Ed
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manue
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Post by manue on Apr 11, 2015 8:42:05 GMT
Morning, My apologies for not getting a chance to jump on here sooner. I can confirm that all assets that are with the Cash Shop are securely stored and insured at the valuation figure as well as all assets that MoneyThing lend on directly are also securely stored and insured. The facility that I manage has a 6 minute armed response time, all staff (including myself), have been trained by ex Flying Squad with respect to an armed attack and tiger kidnap. (Also no false alarms recorded to mitigate the armed response.) Kind regards, Ed Morning Ed,
Reading between the lines can you tell us what's not insured?
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Post by MoneyThing on Apr 11, 2015 9:12:06 GMT
Morning, My apologies for not getting a chance to jump on here sooner. I can confirm that all assets that are with the Cash Shop are securely stored and insured at the valuation figure as well as all assets that MoneyThing lend on directly are also securely stored and insured. The facility that I manage has a 6 minute armed response time, all staff (including myself), have been trained by ex Flying Squad with respect to an armed attack and tiger kidnap. (Also no false alarms recorded to mitigate the armed response.) Kind regards, Ed Morning Ed,
Reading between the lines can you tell us what's not insured?
Hi. To be clear, all the assets that are on the MoneyThing platform are securely stored & insured. Regards, Ed.
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manue
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Post by manue on Apr 11, 2015 9:40:54 GMT
Morning Ed,
Reading between the lines can you tell us what's not insured?
Hi. To be clear, all the assets that are on the MoneyThing platform are securely stored & insured. Regards, Ed. Can't be more clear than that Ed,
I can now revert back to my original stance that the measured risk on the MT platform is relatively low.
Carry on the good work.
From a happier manue.
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SteveT
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Post by SteveT on Apr 11, 2015 9:59:34 GMT
Ed, just to close this out, are there any circumstances in which Cash Shop's insurance would NOT pay out if items were stolen (eg. if caused by fraud on the part of a Cash Shop employee / director?) and does MoneyThing have any separate insurance cover that would kick in under such circumstances? My thinking is that MT investors' contractual relationship is (I believe) solely with MT rather than with Cash Shop. Thanks.
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Post by Deleted on Apr 11, 2015 12:25:39 GMT
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