Kitco Metals Inc.: Terms and Conditions
Disclaimer and transaction conditions for Kitco’s online store
Updated: December 7, 2023
1. Definitions
For the purpose of these Terms and Conditions, the following terms shall have the meanings specified below, unless otherwise indicated:
“Agreement” or “Terms and Conditions” shall mean these terms and conditions that shall govern the relationship between Kitco and the Customer, except as otherwise specifically provided for, and as same may be amended from time to time, without notice;
"Authorized User" shall mean a person to whom a Card has been issued at the authorization of the Primary Cardholder;
“Business Day” shall refer to Kitco’s operational hours, between 8:30 a.m. and 4:00 p.m., Monday through Friday, excluding Saturdays, Sundays and any statutory holidays and bank holidays in the province of Quebec;
“Cleared Kitco Pool” shall mean unallocated metal deposits of gold, silver, platinum, palladium, or rhodium, or such other metals as may be amended from time to time, calculated to three decimal places, that have been acquired or purchased from Kitco and that have been paid with cleared funds;
“Cleared Kitco VaultChainTM” shall mean unallocated metal deposits of gold and silver, calculated to three decimal places, that have been acquired or purchased from Kitco and that have been paid with cleared funds;
“Customer” shall mean a customer who enters into a transaction with Kitco for the purchase or sale of Precious Metal Bullion, Kitco Pool, Kitco VaultChainTM or Scrap Metal and is in compliance with these Terms and Conditions between the Customer and Kitco;
“Customer Purchase Transaction” shall mean any sale operation whereby Kitco sells Precious Metal Bullion, Precious Metal Products, Kitco Pool or Kitco VaultChainTM to its Customer;
“Customer Sale Transaction” shall mean any sale operation whereby Kitco purchases Precious Metal Bullion, Precious Metal Products, Kitco Pool or Kitco VaultChainTM from its Customer;
“Kitco” shall mean Kitco Metals Inc.;
“Kitco Account” shall mean a Customer account maintained with Kitco under the Customer’s name or any agreement, between Customer and Kitco, for the storage or custody of Precious Metals Products on an allocated or unallocated basis. The Kitco Account allows the Customer to place a Customer Purchase Transaction, Customer Sale Transaction or Scrap Metal Transaction for Precious Metals Products. The Kitco Account also allows the Customer access through Kitco’s Online Store to a web portal for the purposes of conducting transactions, viewing Customer’s account information, purchase and sale transactions history and account balance of cleared funds, stored Precious Metal Products, Kitco Pool and Kitco VaultChainTM;
“Kitco’s Online Store” shall mean and refer to Kitco’s Precious Metal Store, available at https://online.kitco.com;
“Kitco Pool” shall mean unallocated metal deposits of gold, silver, platinum, palladium, or rhodium, or such other metals as may be amended from time to time, calculated to three decimal places, purchased through Kitco;
“Kitco VaultChainTM” shall mean metal deposits of gold and silver which are purchased through Kitco, calculated to three decimal places, securely stored by the Royal Canadian Mint and for which the chain of title is maintained and validated by TradeWind Markets, Inc. using a blockchain distributed ledger;
“Open Transactions” shall mean all contemplated and submitted Customer Purchase Transactions, Customer Sale Transactions and Scrap Metal Transactions that have not been completed. For the purposes of confirming a price for a transaction, a Customer Sale Transaction of Kitco Pool and Kitco VaultChainTM are not considered an Open Transaction;
“Precious Metal(s)” shall mean and refer to fine gold, silver, platinum, palladium, and rhodium or other such metals as may be amended from time to time;
“Precious Metal Bullion” shall mean and refer to Precious Metals in the form of bars, coins or rounds;
“Precious Metal Products” shall mean and refer to products in various forms which contain gold, silver, platinum or palladium or other such metals, including but not limited to Kitco Pool and Kitco VaultChainTM, as well as certain collectible products and accessories with varying precious metal purities, as may be amended from time to time;
“Return of Funds” shall mean and refer to a return of cleared funds held on account to the Customer;
“Scrap Metal” shall mean material containing gold, silver, platinum or palladium or other such metals as may be amended from time to time, which is suitable for melting or refining;
“Scrap Metal Transaction” shall mean any sale operation whereby Kitco purchases Scrap Metal from its Customer.
The following Terms and Conditions shall govern all transactions between the Customer and Kitco, except when purchasing and selling specialized products such as Kitco Rhodium Sponge and Royal Canadian Mint Prestige Accounts. Kitco Rhodium Sponge transactions are subject to the Kitco Rhodium Sponge Product: Terms and Conditions. Kitco Royal Canadian Mint Prestige Account transactions are subject to the RCMPA: Terms and Conditions.
It is the Customer’s responsibility to confirm that their transaction conforms to the Terms and Conditions as set out in each of the above specialized products.
2. Application
Customers wishing to purchase from or sell to Kitco must have an account. For Customers who currently have a Kitco Account, please refer to Section 3 of these Terms and Conditions.
2.1. Account Opening
Depending on the type of account to be opened, individuals, business entities or trusts can create an account with Kitco online, by telephone or in person. Additional information regarding the application forms to be completed and the documentation requirements for each type of account can be found on Kitco’s website.
Failure to provide all required documentation may delay the opening of the Kitco Account. Upon receipt and formal acceptance of the completed application form and copies of the required documentation, Kitco will send a confirmation to the Customer as to whether the application has been approved or rejected. Once the application is approved, Kitco will open an account and inform the Customer of their account details.
The Customer acknowledges that Kitco relies on the veracity of all information provided by the Customer when processing any application. By agreeing to these Terms and Conditions, the Customer represents and warrants to Kitco that all information provided by the Customer to Kitco is true and accurate.
2.2. Multiple Accounts
Unless approved in advance by Kitco, only one account may be created per Customer. Kitco will not accept transactions placed by a single Customer over multiple accounts, and the Customer may be held liable for any resulting market loss repayments and administrative fees.
3. Transactions
3.1. Transaction Restrictions
Kitco may restrict the purchase or sale of Precious Metal Bullion, Precious Metal Products or Scrap Metal, whether online or by telephone, as updated from time to time in the Schedule of Transaction Restrictions. Kitco reserves the right to unilaterally amend restrictions or implement new restrictions without notice at any time.
3.2. Customer Purchase Transactions
3.2.1 Confirming a Price for Customer Purchase Transactions
A price is confirmed at the time a Customer Purchase Transaction is submitted (both online as well as by telephone). Should a Customer cancel a Customer Purchase Transaction after it has been submitted, the Customer may be liable for market loss repayments and administrative fees, pursuant to Sections 5.1 and 6.1.3. Subject to the conditions set out in the Schedule of Transaction Restrictions, the price at the time a transaction is submitted will be confirmed, regardless of market fluctuations.
3.3. Customer Sale Transactions
3.3.1 Precious Metal Bullion
Any Precious Metal Bullion sent to Kitco by mail must be accompanied by a packing slip. Customers wishing to confirm a price for their Customer Sale Transaction before sending their Precious Metal Bullion to Kitco may do so online or by contacting Kitco by telephone (see Section 3.3.1.2 for more details). Once a price is confirmed, Kitco will send Customer a packing slip by email.
Customers who do not wish to confirm a price prior to sending their Precious Metal Bullion to Kitco may create a packing slip online at Kitco’s Online Store.
Kitco is not responsible for the customs clearing, duties, insurance and/or transportation costs related to any package. All costs relating to these issues remain Customer’s sole responsibility. Kitco does not provide any letters of guarantee or credit.
3.3.1.1 Testing Precious Metal Bullion
Precious Metal Bullion sent to Kitco will be inspected, weighed and tested for purity and for authenticity. Depending on the type of product sent, destruct testing may be required. Should that be the case, Precious Metal Bullion will be damaged in the process of being tested. Customers wishing to have their Precious Metal Bullion returned after testing acknowledge and agree that it may not be returned to the Customer in the same condition as it was received at Kitco. Kitco may reject a package once it’s been tested if it’s determined that the Precious Metal Bullion sent by the Customer is tampered with, stolen or counterfeit, in which case market loss repayments and fees will apply, as described in Sections 5.4 and 6.
3.3.1.2 Precious Metal Bullion that has been Tampered with or is Counterfeit
In case of products which have been tampered with or counterfeit, Kitco may remit the products to local authorities for further investigation.
3.3.1.3 Confirming a Price for a Customer Sale Transaction of Precious Metal Bullion
A price is confirmed at the time a Customer Sale Transaction for Precious Metal Bullion is submitted (online or by telephone). Should a Customer choose to send Precious Metal Bullion to Kitco along with a packing slip without confirming a price, their transaction will be completed at the market price once the package is received and processed.
Should a Customer cancel a Customer Sale Transaction after it has been submitted, the Customer may be liable for market loss repayments and administrative fees, pursuant to Sections 5 and 6.
For Customer Sale Transactions where the Customer has chosen to confirm a price prior to sending Kitco the Precious Metal Bullion, Kitco guarantees the confirmed price on the packing slip created only when the Customer package is postmarked within one (1) Business Day of the date the order is submitted, and must be received within ten (10) Business Days.
In the event the amount or type of Precious Metal Bullion received by Kitco differ from what was originally submitted by the Customer, the quoted price may be revised and any deficit amount will be treated as a cancellation. Market loss repayments and administrative fees will apply, as described in Sections 5 and 6. Should the Customer send other products in addition to those initially submitted, Customer will be contacted by Kitco in order to confirm a price for the additional products.
Subject to the conditions set out in the Schedule of Transaction Restrictions, the price at the time a transaction is submitted will be confirmed, regardless of market fluctuations.
3.3.2 Kitco Pool and Kitco VaultChainTM
A price is confirmed at the time a Customer Sale Transaction for either Kitco Pool or VaultChainTM is submitted (both online as well as by telephone). Should a Customer cancel a Customer Sale Transaction after it has been transmitted, the Customer may be liable for market loss repayments and administrative fees, pursuant to Sections 5 and 6.
Customers must provide a valid Visa or Mastercard credit card in order to submit a transaction. The price at the time a transaction is submitted will be confirmed, regardless of market fluctuations.
3.4. Scrap Metal Transactions
Customers may send or bring their Scrap Metal to Kitco to be tested, following which Customers may choose to sell said Scrap Metal to Kitco.
3.4.1 Sending Scrap Metal to Kitco
Any Scrap Metal sent to Kitco by mail for testing or for a Scrap Metal Transaction must be accompanied by a packing slip. Customers wishing to confirm a price for their Scrap Metal Transaction before sending their Scrap Metal to Kitco may do so by contacting Kitco by telephone (see Section 3.4.3 for more details). Once a price is confirmed, Kitco will send Customer a packing slip by email. Customers who do not wish to confirm a price prior to sending their Scrap Metal to Kitco may create a packing slip online at Kitco’s Online Store. Customers must have a valid Kitco Refining Business account in order to create a packing slip.
Kitco is not responsible for the customs clearing, duties, insurance and/or transportation costs related to any package. All costs relating to these issues remain Customer’s sole responsibility. Kitco does not provide any letters of guarantee or credit.
3.4.2 Testing Scrap Metal
Scrap Metal sent to Kitco will be scratch tested using a touch stone and acid. Should it be impossible to determine the Precious Metal content of Customer’s Scrap Metal by this method, Customer will be contacted and may choose whether or not to proceed with testing using melt and/or assay services, subject to the applicable fees described in Section 6.
Scrap Metal will be damaged in the process of being tested/assayed. As a result, should Customer request that Scrap Metal be returned after testing, it may not be returned in the same condition as it was received at Kitco.
Kitco's tests can accurately determine purity only up to 18 Karats. Scrap Metal believed to be higher than 18 Karats must test as well as 18 Karats and have a recognized hallmark stamp. If the Scrap Metal scratch test at 18 Karats, but bears no stamp or an indistinct stamp, Kitco will purchase said Scrap Metal at the price applicable to 18 Karat products. Customers may request an assay of their Scrap Metal at any time.
Once Customer’s Scrap Metal has been tested, Customer will be contacted to proceed with completing the Scrap Metal Transaction. Customers having had their Scrap Metal tested by Kitco may request that it be returned at any time before the transaction has been completed. Scrap Metal will be returned upon payment of relevant return shipping costs and any applicable market loss repayments and fees, as described in Sections 5 and 6.
Kitco may reject a package once it has been tested if it has determined that the Scrap Metals sent by the Customer contains metal contaminants beyond certain acceptable limits. This Scrap Metal may be impossible to refine. In these cases, Kitco will return the Scrap Metal to the Customer, at the Customer’s expense.
Kitco will also reject a package once it has been tested if it is suspected that the Scrap Metal sent by the Customer is fraudulent, counterfeit or has been stolen. Market loss repayments and fees will apply, as described in Sections 5.4 and 6. In these cases, Kitco may remit the products to local authorities for further
3.4.3 Confirming a Price for Scrap Metal Transactions
A settlement price is confirmed at the time a Scrap Metal Transaction is submitted by telephone. This results in a binding agreement between Kitco and Customer relative to that transaction. Customers who choose to send Scrap Metal to Kitco along with a packing slip without confirming a price for the Scrap Metal Transaction beforehand will be contacted by Kitco once their package is received and tested in order to have their transaction completed.
For Scrap Metal Transactions where the Customer has chosen to confirm a price for the transaction prior to sending Kitco their Scrap Metal, Kitco guarantees the price only when the Customer package is postmarked within two (2) Business Days of the date the order is submitted, when Customer provides Kitco with a tracking number for the package sent within two (2) Business Days of the date the order is submitted, and when the package is received within ten (10) Business Days. In the event the amount, karat weight or purity of the Scrap Metal received by Kitco differ from what was submitted by Customer, the quoted price may be revised and any deficit amount will be treated as a cancellation. Market loss repayments and administrative fees will apply, as described in Sections 5 and 6.
Should a Customer cancel a Scrap Metal Transaction after a price has been confirmed, or should Kitco reject a Customer package after a Scrap Metal Transaction has been submitted, the Customer may be liable for market loss repayments and administrative fees, pursuant to Sections 5 and 6.
Subject to the conditions set out in the Transaction Restrictions Schedule, the price at the time a transaction is submitted will be confirmed, regardless of market fluctuations.
3.5. Credit Cards
As described in Sections 3.2 and 3.3, Customers may be required to provide a valid Visa or Mastercard credit card when purchasing or confirming a price for a transaction.
Credit card is an acceptable form of payment for products purchased from Kitco (as outlined in Section 3.2) for market loss repayments (as outlined in Section 5) or other fees (as outlined in Section 6) that become payable and remain unpaid.
By providing a valid credit card to Kitco, the Customer confirms that:
• The Customer is the named credit card holder or Authorized User to use the credit card;
• The credit card may be used to confirm a price for a transaction (if applicable);
• The credit card may be used to pay for the Customer Purchase Transaction (as outlined in Section 3.2);
• Kitco can pre-authorized a nominal amount on the credit card; and
• Kitco may charge unpaid outstanding market loss repayments or other fees to the credit card.
4. Payment and Funds on Account
4.1. Funds on a Kitco Account
Customers may add funds to their Kitco Account (also referred to as “funds on account”). Cleared funds on a Kitco Account shall be used towards payment for Customer Purchase Transactions, as described in Section 4.2, and may be used to confirm a price for both Customer Purchase Transactions and Customer Sale Transactions, as described in Sections 3.2 and 3.3. In order for funds on account to be considered cleared, there must be no hold placed on the funds, and applicable holding periods must have elapsed.
Funds on a Customer’s Kitco Account belong to the Customer until they are applied to a specific transaction or used as payment for any amount due to Kitco. These funds shall be specifically identified and segregated at all times from funds belonging to Kitco.
4.2. Acceptable Methods of Payment and Adding Funds to a Kitco Account
At any one time, payment can be made and funds can be added to an account using only one method in addition to funds on account. Multiple payments or funds sent at the same time will not be accepted. The methods of payment or adding funds to a Kitco Account, along with their corresponding transaction limits and fees, are defined in the Schedule of Accepted Payment Methods.
Kitco may refuse payments or funds (in any form whatsoever, including, and without limitation, credit card, checks, bank drafts, money orders or bank wires) received from an individual or from an entity that is not the named account owner. Furthermore, Kitco may request additional documentation before such payment or funds are applied to Customer’s Kitco Account or delivery of Customer's Purchase Transaction.
4.3. Payment Deadlines - Customer Purchase Transactions
Payment must be sent to Kitco within one (1) Business Day from the date on which a transaction is submitted. Payments made by bank wire must be received by Kitco no later than three (3) Business Days from the date on which a transaction is submitted.
Should a Customer fail to send payment within one (1) Business Day from the date on which a transaction is submitted, or if Kitco does not receive payment within the deadline specified above, Kitco reserves the right to cancel the transaction and the Customer will be liable for market loss repayments and other fees, as described in Sections 5 and 6.
4.4. Credit Cards
A valid Visa or Mastercard credit card is an acceptable method of payment for Customers residing or having their principal place of business in Canada or the United States (subject to applicable restrictions as described in Section 4.2). If paying by credit card, Customer confirms that shipping address must match billing address associated with said card.
Kitco may also refuse a payment by credit card without notice at any time and may request additional documentation and information before such payment is applied to Customer’s Purchase Transaction or delivery of the Customer's Purchase Transaction.
Kitco does not accept any pre-paid credit cards or gift cards for a Customer’s Purchase Transaction.
4.5. Checks
Checks are an acceptable method of payment or for adding funds to a Kitco Account for Customers residing or having their principal place of business in Canada or the United States (subject to applicable restrictions and holding periods as described in Section 4.2).
Checks should be made payable to Kitco Metals Inc. Checks must always reference Customer’s Kitco Account in order for funds to be properly applied to said account.
Checks will be returned to the Customer by Kitco if they are incorrectly written (for reasons which include, without limitation, incorrect or missing date, dollar amount discrepancies, incorrect spelling of payee or missing signature). Incorrectly written checks will be returned to the Customer via regular mail once the Customer has been notified by Kitco of the returned check. Customers may choose to have their check returned via courier upon payment of a fee as defined in the Schedule of Accepted Payment Methods, including applicable taxes. Said fee can either be added to the amount of the replacement payment, or can be paid by credit card.
Checks that are returned by the bank in cases of fraud, counterfeiting, NSF (Non-Sufficient Funds) in Customer’s account, ACL (Account Closed) or CNT (Cannot Trace) will be subject to the administrative fee described in Section 6.1.2.
4.6. Bank Wires
Kitco’s bank wire information is made available to the Customer at the end of the online ordering process, through the Customer’s online account transaction details. This information is also made available to the Customer by e-mail, once a transaction is submitted.
Bank wire transfers must respect the payment deadlines described in Section 4.3. Bank wire transfers must always reference the Customer’s Kitco Account number and name in order for funds to be properly applied to said account.
4.6.1 International Bank Wires
International bank wires may be subject to correspondent bank fees that are deducted while a wire is in transit. As Kitco’s bank is simply the recipient bank, it is impossible to determine the fees that may be deducted by any correspondent banks. Kitco highly recommends that all Customers sending funds from a bank outside the United States and Canada include an additional amount on their bank wire to accommodate for any fees that may be deducted by a correspondent bank. The Customer should confirm with their banking institution the exact amount that may need to be included in the wire to cover all fees that may be deducted. Kitco will always credit the entire amount it receives to the Customer’s account. Should no fees be deducted, the entire bank wire amount will be credited to the Customer’s account.
4.7. Proceeds from Customer Sale Transactions, Scrap Metal Transactions and Return of Funds
Settlement options, along with the corresponding fees and transaction limits, for Customer Sale Transactions, Scrap Metal Transactions and Return of Funds are defined in the Schedule of Accepted Payment Methods and are subject to change from time to time.
Once a payment option has been selected or if the option to convert to Kitco Pool or VaultChainTM has been chosen, it cannot be altered for any reason.
Processing and settlement for Customer Sale Transactions and Scrap Metal Transactions may take two (2) Business Days from receipt of Precious Metal Bullion or Precious Metal Products by Kitco. Return of funds may take two (2) Business Days from receipt of request to Kitco.
However, note that settlement time may be delayed due to statutory and bank holidays in Canada and in the US, increased market activity, capacity limitations of Kitco or size of the transaction.
Due to anti-money laundering legislation in both the United States and Canada, Kitco cannot forward the proceeds from any Customer Sale Transaction or Scrap Metal Transaction to an individual or entity who is not a designated account owner. Any payment from a Customer Sale Transaction or a Scrap Metal Transaction in a Business Account can be made in the business name only. For Sole Proprietorships, payment can be made in the business name or the sole proprietor’s name, provided proper authorization documentation has been received by Kitco.
Note that for any single transaction, payment can be made by only one method in addition to funds on account.
4.8. Completing a Transaction
4.8.1 Customer Purchase Transactions
A Customer Purchase Transaction is completed when payment is received in full within the payment deadlines described in Section 4.2, provided that no hold is placed on payment, and Kitco performs its principal obligation.
For Customer Purchase Transactions of Precious Metal Bullion, Kitco's principal obligation is presumed to have been performed if Kitco attempted to deliver the Precious Metal Bullion but was prevented from doing so by the actions or negligence of the Customer, or when Kitco consents to the Customer taking possession of the Precious Metal Bullion.
Legal ownership of the Precious Metal Bullion or Kitco Pool will be considered transferred from Kitco to the Customer once the transaction is completed.
4.8.2 Customer Sale Transactions and Scrap Metal Transactions
A Customer Sale Transaction or a Scrap Metal Transaction is completed when Kitco has received the Customer package within the deadlines specified in Section 3 and Kitco performs its principal obligation.
Legal ownership of the Customer package will be considered transferred from the Customer to Kitco once the transaction is completed.
All Customer Sale Transactions and Scrap Metal Transactions are final. Once a transaction is complete and ownership has been transferred to Kitco, Precious Metal Bullion or Scrap Metal cannot be returned to Customer.
5. Transaction Cancellations
When cancelling a transaction, market loss repayments may apply as a submitted transaction constitutes a binding agreement between Kitco and the Customer. Applicable market loss repayments will be determined based on the following:
5.1. Customer Purchase Transactions
In the event a Customer Purchase Transaction is cancelled (whether by the Customer or by Kitco for failure to receive payment in full within payment deadlines, as stipulated above), market loss repayments may be applicable. This fee is calculated based on whether there has been a decrease in the price of the Precious Metals (market loss) from the time the price is confirmed for a submitted transaction to the time a transaction is cancelled.
For Customer Purchase Transactions cancelled by Kitco due to non-payment, market loss repayments will be calculated using the LBMA PM gold price, LBMA PM platinum price, LBMA PM palladium price or the LBMA silver price on the day that the payment deadline expires. For transactions involving rhodium, market loss repayments will be calculated using Kitco’s live spot price (plus applicable premiums) for rhodium on the day that the payment deadline expires.
For Customer Purchase Transactions which are cancelled by the Customer, market loss repayments will be calculated using Kitco’s live spot price at the time a cancellation request is submitted.
Decrease in Price of Precious Metals
In the event of a decrease in the price of Precious Metals, the market loss repayment will be equivalent to the difference between the original value of the Customer Purchase Transaction and its value at the time of cancellation.
Increase in Price of Precious Metals
In the event of an increase in the price of Precious Metals, no market loss repayment will be applicable.
5.2. Customer Sale Transactions and Scrap Metal Transactions
In the event a Customer Sale Transaction or a Scrap Metal Transaction is cancelled, whether by the Customer or by Kitco, market loss repayments may be applicable. This fee is calculated based on whether there has been an increase in the price of Precious Metals from the time a transaction is submitted and the price confirmed to the time a transaction is cancelled.
Customer Sale Transactions for Precious Metal Bullion or Scrap Metal Transactions will be cancelled in ten (10) Business Days, if product is not received by one of our depositories. Customer must expedite shipment of any product included in their Customer Sale Transaction or their Scrap Metal Transaction within one (1) Business Day of the date the price is confirmed.
For Customer Sale Transactions or Scrap Metal Transactions cancelled by Kitco, market loss repayments will be calculated using the LBMA PM gold price, LBMA PM platinum price, LBMA PM palladium price or the LBMA silver price on the day that the deadline for receiving Precious Metal Bullion or Scrap Metal expires. For transactions involving rhodium, market loss repayments will be calculated using Kitco’s live spot price for rhodium on the day the deadline for receiving Precious Metal Bullion or Scrap Metal expires.
Increase in Price of Precious Metals
In the event of an increase in the price of Precious Metals, the market loss repayment will be equivalent to the difference between the original value of the Customer Sale Transaction or Scrap Metal Transaction and its value at the time of cancellation.
Decrease in Price of Precious Metals
In the event of a decrease in the price of Precious Metals, no market loss repayment will be applicable.
5.3. Cancellation at the Customer's Request
Transactions may be cancelled at the Customer’s request, provided payment has not been received or settlement has not been issued in full. Should the Customer request a cancellation, the above cancellation policy will be considered in effect. Fees will be calculated based on Kitco’s live spot price for the product being cancelled at the time a cancellation request is submitted. Customers must submit all requests for cancellation by telephone only.
5.4. Materials Sent Different from Those for Which Prices were Confirmed
Should the amount or product received by Kitco differ from that for which prices were confirmed by Customer, any deficit amount will be treated as a cancellation and the above cancellation policy will be considered in effect. Market loss repayments will be calculated using the LBMA PM gold price, LBMA PM platinum price, LBMA PM palladium price or the LBMA silver price on the day the deficit is discovered. For transactions involving rhodium, market loss repayments will be calculated using Kitco’s live spot price for rhodium on the day the deficit is discovered.
Increase in Price of Precious Metals
In the event of an increase in the price of Precious Metals, the market loss repayment will be equivalent to the difference between the original confirmed price of the Customer Sale Transaction or the Scrap Metal Transaction and the price on the date the deficit is discovered by Kitco, multiplied by the number of pure ounces of which the Customer’s package was deficient.
Decrease in Price of Precious Metals
In the event of a decrease in the price of Precious Metals, no market loss repayment will be applicable.
5.5. Unauthorized Sale Transaction Request
In the event that a Customer Sale Transaction is initiated when the Customer did not request the transaction, the Customer must notify Kitco immediately upon being made aware of the request so that Kitco may begin examination of the claim without delay. In the event that Kitco determines that the Customer Sale Transaction was unauthorized, the market loss repayments will be waived.
6. Fees
Kitco may charge the fees and premiums to the Customer in relation, but not limited to, Precious Metal Bullion, Precious Metal Products, Scrap Metal Transactions and other services. Such fees, which are subject to change from time to time, are set out in the Schedule of Fees and the amounts are posted on the Kitco Online Store (which fees shall be subject to change from time to time). Unless otherwise specified, all fees stated are in both US and Canadian Dollars. A transaction placed in British Pounds or Euros will be converted based on the US Dollar exchange rate at the time the transaction is submitted.
6.1. Administrative and Storage Fees
6.1.1 Kitco Pool
An administrative fee in the amounts posted on the Kitco Online Store from time to time (which fees shall be subject to change) will be charged to Customers for all purchase and/or sale transactions that involve Kitco Pool. This includes transactions in which Kitco Pool is purchased or sold in combination with Precious Metal Bullion. The administrative fee is calculated/quoted in USD for U.S. dollar transactions, in CAD for Canadian dollar transactions and in USD equivalents for transactions in all other currencies.
6.1.2 Kitco VaultChainTM
Kitco VaultChainTM accounts may be subject to an applicable account opening fee, administrative fees and annual storage fees in the amounts posted on the Kitco Online Store from time to time (which fees shall be subject to change). Applicable Kitco VaultChainTM account fees will be charged to Customers upon the opening of a Kitco VaultChainTM account and annually thereafter. Kitco VaultChainTM account annual storage fees will be pro-rated on a quarterly basis based on the number of quarters having elapsed in a given calendar year at the time of initial Kitco VaultChainTM purchase and annually thereafter. The account opening fee, administrative fees and storage fees are calculated/quoted in USD for U.S. dollar transactions, in CAD for Canadian dollar transactions and in USD equivalents for transactions in all other currencies.
6.1.3 Returned Check
An administrative fee will be charged to Customer if a check (of any kind), bank draft or money order that Customer has sent to Kitco has been returned. This includes, but is not limited to, checks returned due to fraud, NSF (Non-Sufficient Funds) in Customer’s account, ACL (Account Closed) or CNT (Cannot Trace).
6.1.4 Transaction Cancellations
In addition to applicable market loss repayments, transactions cancelled pursuant to Section 5 will be subject to an administrative fee in the amounts posted on the Kitco Online Store from time to time (which fees shall be subject to change).
6.1.5 Changes to Delivery Address
An administrative fee in the amounts posted on the Kitco Online Store from time to time (which fees shall be subject to change), will be charged in the event the Customer wishes to make any changes to the delivery address for the Purchase Transaction. Any request for change is subject to Kitco's approval and Kitco reserves the right to refuse the Customer's request for any reason.
6.1.6 Undeliverable Packages
An administrative fee in the amounts posted on the Kitco Online Store from time to time (which fees shall be subject to change), will be charged to Customer in the event that Customer’s Precious Metal Bullion is bought back by Kitco as a result of said Precious Metal Bullion being returned as undeliverable, further to Section 7 herein.
6.2. Fabrication Fees
The Customer may request a conversion from Cleared Kitco Pool or Cleared Kitco VaultChainTM to any corresponding Precious Metal Bullion product. In these cases, a fabrication fee may be applicable. Said fee may vary, depending on the physical product the Customer requests. Shipping and insurance fees (as outlined in sub-section 6.3), or pick-up fees (as outlined in sub-section 6.4), may be incurred.
6.3. Shipping and Insurance Fees
Should the Customer request that Kitco arrange for shipping or delivery of Precious Metal Bullion, or should the Customer request or Kitco be required to return any Precious Metal Bullion or Scrap Metal back to the Customer, shipping and insurance fees will be applicable. Quotes for shipping and insurance fees will be provided during the transaction process based on the value of the shipment, the type of products being shipped, the shipping method and the shipping destination. Taxes may apply to shipping and insurance fees. For Shipments outside of continental United States and Canada, standard shipping rates may not apply.
All shipments prepared by Customer for delivery to Kitco must be properly packaged and labeled in order to accelerate processing times and ensure the safe arrival of Customer packages. Detailed shipping and packaging instructions can be found on Kitco’s Online Store. Failure to properly package and label shipments sent to Kitco may result in the insurer rendering insurance coverage void.
6.3.1 Large Shipments
For certain large shipments, standard shipping and insurance rates may not apply. Large shipments may include (without limitation) orders over $100,000.00 in value, order containing 100 oz / 400 oz gold bars, monster boxes or orders over 700 oz in total weight. For large shipments, a quote for shipping and insurance fees will be provided by Kitco on a case-by-case basis.
Furthermore, Kitco may recommend or require shipment via armored vehicle, which will require delivery to a business, bank, or depository service. If applicable, the Customer is responsible for all shipping and insurance costs for armored vehicle service.
6.4. Pick-up and Drop-off Fees
Should the Customer submit a Purchase Transaction or convert to Precious Metal Bullion and pick-up at one of Kitco’s depositories, a pick-up fee may be applicable, dependent on location. Furthermore, a fee may be charged to Customers who drop off items at one of Kitco’s depositories in relation to a Customer Sale Transaction, dependent on location. Such fees will be charged based on the amounts posted on the Kitco Online Store from time to time (which fees shall be subject to change)
6.5. Melt & Assay Fees
If a Kitco representative can test Customer’s Scrap Metal with a scratch test, there will be no processing fees. However, if determined that a melt and/ or assay are required, Kitco will contact Customer before proceeding to advise the Customer of fees and processing times.
6.6. Handling Fees for Testing Scrap Metal
In addition to applicable market loss repayments and the administrative fee described in Section 6.1.3, Customers who confirm a price with Kitco and then decide to not sell the Scrap Metal after it has been tested, will be charged a handling fee of $70 (USD for U.S. dollar transactions, in CAD for Canadian dollar transactions and in USD equivalents for transactions in all other currencies). Said handling fee shall also apply should Customer simply send Scrap Metal to Kitco for testing without completing a Scrap Metal Transaction.
6.7. Taxes and Duties
Should the Customer request delivery of Precious Metal Bullion or should any package be returned to a location outside the United States or Canada, taxes and duties, including Value Added Taxes (VATs), may be applicable, depending on the country of import. The Customer, in agreeing to these Terms and Conditions, acknowledges that any taxes or duties, including VATs, will be the sole responsibility of the Customer and Kitco will not be held liable for any fees.
6.8. Sales Tax
Unless otherwise indicated in this Agreement, all fees quoted herein and on Kitco's Online Store are exclusive of sales tax. Applicable sales tax will be added to Customer's Purchase Transaction depending on Customer's delivery address. For more information, please contact Kitco.
6.9. Undeliverable or Refused Packages
In the event that a Customer has asked Kitco to arrange for delivery of Precious Metal Bullion or Precious Metal Products and that said Precious Metal Bullion or Precious Metal Products returned to Kitco for any reason, including, without limitation that the package has been deemed by the carrier to be undeliverable or are refused by the recipient, Kitco will promptly notify the Customer in order to obtain further shipping instructions. Once instructions have been received from the Customer, Kitco will arrange for the Customer’s Precious Metal Bullion or Precious Metal Products to be re-shipped and shipping and insurance fees will be applicable as described in Section 6.3.
Instructions regarding the re-shipment of returned Precious Metal Bullion or Precious Metal Products must be received from the Customer no later than ten (10) Business Days from the date on which the Customer was notified by Kitco of the return.
Should the Customer fail to contact Kitco regarding re-shipment of the Precious Metal Bullion or Precious Metal Products, or if Kitco is unable to arrange for re-shipment of the returned Precious Metal Bullion or Precious Metal Products within the deadline specified herein, Kitco will proceed to buy back said Precious Metal Bullion or Precious Metal Products. In these cases, an administrative fee will apply, as described in Section 6.1.
Precious Metal Bullion will be bought back by Kitco using the LBMA PM gold price, LBMA PM platinum price, LBMA PM palladium price or the LBMA silver price on the date that the deadline for receiving shipping instructions from the Customer expires, plus applicable premiums. For transactions involving rhodium, the price used will be Kitco’s live spot price for rhodium on the day the deadline for receiving shipping instructions from the Customer expires, plus applicable premiums.
Proceeds from the sale of returned Precious Metal Bullion or Precious Metal Products will be deposited as funds on Customer’s Kitco Account, less any applicable fees.
7. Exchange Policy
Customer may ask for the exchange of any Precious Metal Bullion or Precious Metal Products purchased from Kitco in the event that the Customer is unsatisfied with said products. Customer must notify Kitco by telephone of their desire to exchange their product(s) within three (3) Business Days of having received said product(s) from Kitco. Products must be returned in their original packaging and all shipping and insurance costs for incoming and outgoing shipments shall be at the expense of the Customer.
All requests for exchange are subject to Kitco’s approval and Kitco reserves the right to reject a Customer's request for exchange for any reason including, without limitation, lack of availability of the Precious Metal Bullion or Precious Metal Products in question. Additional costs may be applicable in case of an exchange for a product with a higher premium.
8. Return Policy
Customer may ask to return any Precious Metal Bullion or Precious Metal Products purchased from Kitco in the event that the Customer is unsatisfied with said products. All returns will be purchased from Customer as a Sale Transaction as outlined in Section 3.3 less any applicable market loss repayment.
9. Right to Withholding and Compensation (Set-off)
To secure the payment or repayment of any sums payable by Customer to Kitco, including, without limitation, for transactions, market loss repayments, account opening fees, administrative fees, storage fees, or any other account or transaction-related fees, Customer undertakes to maintain and consents that Kitco withholds cleared funds on Customer’s Kitco Account, Precious Metal Products, Cleared Kitco Pool or Cleared Kitco VaultChainTM, in an amount corresponding to those funds needed to confirm a price for Customer transactions, as described in Section 3. Kitco may withhold said funds on Customer’s Kitco Account, Cleared Kitco Pool or Cleared Kitco VaultChainTM until full payment has been received.
In case of cancellation of a transaction or non-payment by Customer of any amounts due and payable to Kitco pursuant to the terms of this Agreement, Kitco may, subject to applicable laws and the terms of this Agreement (including in the case of overdue amounts as described in Section 13.1), in its discretion and without notice to Customer, set-off or compensate any amounts that Customer owes to Kitco against any of the cleared funds or other assets in Customer’s Kitco Account including but not limited to cleared funds, Precious Metal Products, Cleared Kitco Pool and/or Cleared Kitco VaultChainTM.
To the extent allowable by applicable law, Kitco may enforce its rights under this Section 9 by: (a) using any cleared funds in a Kitco Account to satisfy such outstanding amounts; or (b) disposing of any assets held in a Kitco Account including but not limited to balances of Precious Metal Products, Cleared Kitco Pool or Cleared Kitco VaultChainTM to satisfy such outstanding amounts. In the event that Kitco disposes of any of the assets held in the Customer’s Kitco Account in accordance with its rights under this Section 9, then, after deducting all unpaid amounts due and owing to Kitco plus any and all costs of administration, including any costs associated with storing, disposing and reselling the assets, and any other charges, fees and expenses Kitco may incur in disposing of the assets and enforcing its rights hereunder. Kitco shall remit the remaining balance, if any, of the proceeds of such disposition to the Customer.
Customer acknowledges and agrees that it will reimburse Kitco for all reasonable costs incurred by Kitco (including legal fees) in connection with the collection of any amounts owed by Customer to Kitco.
10. Kitco Pool
As defined in the present Agreement, Kitco Pool is comprised of unallocated precious metal deposits purchased through Kitco. Kitco Pool may consist of precious metals in any form whatsoever, including, without limitation, bars, coins, and scrap metal. Precious metal deposits which form Kitco Pool shall remain the property of Customers holding Kitco Pool at all times and Kitco shall cause such precious metal deposits to be specifically identified and segregated at all times from coin, bullion and metal in any form whatsoever which belong to any other person or entity, including Kitco. These precious metal deposits belong to Customers who hold Kitco Pool and are available to said Customers at any time, subject to payment of related fees and the time necessary for fabrication and delivery. Kitco Pool is stored in secured depositories in various locations. Said depositories are chosen by Kitco at its sole discretion.
Customers holding Kitco Pool hereby authorize Kitco to perform any and all acts necessary for the administration of Kitco Pool on their behalf, including, without limitation, arranging for the insurance of Kitco Pool, storing and transferring unallocated metals from one depository to another and having scrap metal deposits refined.
A Customer owning Cleared Kitco Pool may request a conversion from Kitco Pool to the corresponding Precious Metal Bullion product. For conversions from Precious Metal Bullion to Kitco Pool, the Customer will be credited with the exact ounce amount of the product converted.
11. Kitco VaultChainTM
As defined in the present Agreement, Kitco VaultChainTM is comprised of unallocated gold and silver deposits purchased through Kitco for which the chain of title is recorded in a blockchain distributed ledger maintained by TradeWind Markets, Inc. Kitco VaultChainTM may consist of precious metals in any form whatsoever, including, without limitation, bars, coins, and scrap metal. Precious metal deposits that form Kitco VaultChainTM shall remain the property of Customer holding Kitco VaultChainTM at all times. These precious metal deposits belong to Customers who hold Kitco VaultChainTM and are available to said Customers at any time, subject to payment of related fees and the time necessary for fabrication and delivery. The Royal Canadian Mint securely stores Kitco VaultChainTM.
Customers holding Kitco VaultChainTM hereby authorize Kitco to perform any and all acts necessary for the administration of Kitco VaultChainTM on their behalf, including, without limitation, arranging for the insurance of Kitco VaultChainTM.
A Customer owning Cleared Kitco VaultChainTM may request a conversion from Kitco VaultChainTM to the corresponding Precious Metal Bullion product. For conversions from Precious Metal Bullion to Kitco VaultChainTM, the Customer will be credited with the exact ounce amount of the product converted, in accordance with Section 6.2 of this present Agreement.
12. Melt Loss of Scrap Metal
Testing and refining Scrap Metal will result in a decrease in the gross weight of said materials due to the burning process in which impurities such as alloys are eliminated. A decrease in weight may also occur as gemstones, enamel or other imbedded metals are separated and retained in borax. While the average loss in purely metallic material (without gemstones) is approximately 1%, this will increase if Customer’s Scrap Metal includes gemstones or other non-precious metal content. Dental Scrap Metal such as gold filings may lose up to 30% of their weight, depending on the amount of contamination present in said materials. To aid in melting of substances containing palladium or platinum, copper may need to be added to melts. In such cases, the melt loss is difficult to estimate and will vary from cases to case.
13. Remedies
In the event that Customer is in default of any of its obligations under this Agreement, Kitco shall immediately have the option, in its sole discretion, in addition to any other rights which it may have at law or in equity and without any further notice to the Customer, to exercise any of the remedies specified under this Agreement.
13.1. Overdue Amounts
In the event that Customer fails to pay any amount due and owing at any time to Kitco in accordance with the terms of this Agreement, Kitco may provide Customer with written notice detailing the failure to pay and Kitco’s intention to dispose of the Customer’s Precious Metal Products (including Cleared Kitco Pool and/or Cleared Kitco VaultChainTM balances) if the failure is not remedied within sixty (60) days following the delivery of such notice. In the event that Customer fails to remedy its failure pay such outstanding amounts in full within said sixty (60) day period, Kitco shall be entitled to dispose of the Precious Metal Products (including Cleared Kitco Pool and/or Cleared Kitco VaultChainTM balances) in its sole and entire discretion, without further notice or delay. In the event that Kitco sells the Customer’s Precious Metal Products (including Cleared Kitco Pool and/or Cleared Kitco VaultChainTM balances) in accordance with its rights hereunder, as are more specifically set out in Section 9 above.
13.2. Inability to Perform
In the event that:
(i) either Kitco or Customer fails to perform any material obligation pursuant to the terms of this Agreement and does not cure such failure within thirty (30) days after the receipt of written notice thereof from the other party,
(ii) either Kitco or Customer shall be dissolved or adjudged bankrupt, or a trustee, receiver or conservator of such party or its property shall be appointed, or an application for any of the foregoing is filed,
(iii) control of either Kitco or Customer is taken over by any government or other public authority, or
(iv) any government or governmental agency shall have taken any action which has materially adversely affected or will materially adversely affect a party’s ability to perform any of its obligations hereunder, and such action shall not have been rescinded or modified, and the adverse effects thereof shall not have been eliminated, within thirty (30) days after written notice of such action shall have been given to the other party,
then this Agreement may be terminated at any time thereafter by Kitco or Customer upon written notice to the other party.
In the event of termination of this Agreement in accordance herewith, provided that there are no unpaid fess, charges or other amounts due to Kitco, Kitco shall promptly arrange for the delivery of all Precious Metal held for Customer in accordance with Customer’s instructions.
14. Risk
14.1. Advice
Kitco has not offered or given and will not provide any investment advice in connection with any transaction and has not offered or given any opinion with respect to the suitability of any transaction made or which might be made by the Customer.
The Customer acknowledges, represents and warrants that Kitco has not offered or given any investment advice to Customer in connection with the products and services offered by Kitco. In addition, Kitco has not given Customer any opinion with respect to the suitability of any of its products or services for Customer.
14.2. Market Risk
Customers should carefully consider the suitability of Precious Metals as an investment choice before taking any decisions that may affect their financial situation. Precious Metal products and accounts are not insured by the Canadian Deposit Insurance Corporation, Canadian Investor Protection Fund or other similar program and may lose value.
The purchase and sale of Precious Metals involves a high degree of risk and is not suitable for all persons. The purchase and sale of Precious Metals provides no guarantee of interest, yield or return. Losses may be incurred both as a result of price devaluation and if price gains do not exceed applicable fees, including those charged herein. The Customer has read and understands these Terms and Conditions and acknowledges that all risk of decline in the market value of any Precious Metals is the Customer’s risk and not that of Kitco. If the Customer has any doubt as to the suitability of Precious Metals as an investment, the Customer should contact an independent legal or financial advisor.
15. Kitco’s Rights
Kitco hereby reserves the following rights and the Customer acknowledges and agrees to the following:
• Kitco may adjust ASK and BID prices at any time without prior notice.
• Kitco may withdraw or limit the products or services provided by telephone, in person and on Kitco’s Online Store, or may suspend the availability of Kitco’s Online Store, or suspend the completion of transactions submitted to Kitco, without notice at any time.
• Kitco may cancel or reject any order at any time.
• Kitco may place limits on the amounts that may be offered for sale or the amounts that may be bought back by Kitco in any twenty-four (24) hour period.
• Kitco may terminate this Agreement at its sole discretion and may freeze an account or liquidate and close an account at any time for any reason including but not limited to the abuse of policy, criminal activity, circumvention of Kitco’s web security services, and any other violation of these Terms and Conditions. If the Customer has Kitco Pool, Kitco will close the Customer’s Kitco Account and liquidate any Kitco Pool holdings and send the Customer a check or bank wire as explained in sub-section 4.6 herein.
16. Limitation of Liability
Kitco hereby reserves the following rights and the Customer acknowledges and agrees to the following:
16.1. Capital Gains/Income Taxes
Kitco does not report any Customer transactions to the Internal Revenue Service or the Canada Revenue Agency; however, the purchase or sale of Precious Metals may be considered reportable as taxable income. It is the Customer’s responsibility to contact a financial advisor for further information. Kitco will not be held liable for any capital gains or tax implications due to the purchase or sale of precious metals by the Customer.
16.2. Technical Issues
16.2.1 Electronic Order Entry Risk Disclosure and Disclaimer
Kitco specifically disclaims any liability or responsibility for orders placed via the Kitco online order entry system, for any losses, or direct, indirect, consequential or incidental damages, which the Customer may recognize or incur as a result of the use of the Kitco online order entry system. Further, Kitco specifically disclaims any liability for the interruption, cancellation or other termination of the Kitco online order entry system.
16.2.2 Negligence
All orders placed through the order entry system are taken on a best efforts basis. Kitco shall not be responsible for errors, negligence or inability to execute orders. Nor shall Kitco be responsible for any delays in the transmission, delivery or execution of Customer's order due to breakdown or failure of transmission or communication facilities, or to any other cause or causes beyond Kitco's reasonable control or anticipation.
16.2.3 Possible System Failure
Order entry systems have been designed to provide an efficient and dependable method for entering orders. Commercial internet service providers are not 100% reliable and a failure by one or more of these providers may affect internet based order entry. The Customer acknowledges that the order entry system is a mechanical system and as such may be subject to failure beyond the control of Kitco.
16.3. Internet Security
Kitco adheres to the highest security measures to ensure Customer data is protected against theft, loss, and corruption, and against the misuse and alteration of any Customer data stored on our servers. However, when a Customer accesses their account via a public or unsecured computer terminal or if a Customer chooses to share their account username and password (“Electronic Identification Information”), Kitco cannot guarantee the security of account data.
Sensitive communication between the Customer and Kitco’s online store is always protected via encryption while in transit, using the SSL encryption standard. However, the Customer should be aware that Kitco has no control over the privacy of Customer e-mail communications with us. We highly recommend that Customers not include private and sensitive information in e-mails to Kitco, including, but not limited to, account numbers, balances, passwords, Electronic Identification Information, etc. Kitco will not be held liable for any damages suffered by Customers should they transmit confidential or sensitive information to us through e-mail.
Information provided on Kitco’s website is not intended to provide legal, accounting, or tax advice, and should not be relied upon in that regard. Kitco is not responsible in any manner for direct, indirect, special or consequential damages howsoever caused, arising out of the use of its website.
16.4. Indemnification
Except as otherwise expressly provided, Kitco shall not be liable for any loss or damage, whether direct or indirect, resulting from the transactions contemplated by these Terms and Conditions.
Kitco shall not be liable under any circumstances whatsoever for special, incidental, consequential, indirect or punitive losses or damages (including lost profits or lost savings), whether or not caused by the fault or neglect of Kitco and whether or not Kitco had knowledge that such losses or damages might be incurred.
The limitations and exclusions in this clause shall apply to all claims of whatsoever nature, kind and description, whether arising from breach of contract, delay or non-delivery of services, negligence or otherwise.
16.5. Force Majeure
Kitco shall not be liable for any failure to perform its obligations hereunder due to fire, computer viruses, network failure, computer hardware failure, explosion, flood, lightning, act of terrorism, war, rebellion, riot, sabotage, orders or requests of any government or any other authority, legislative changes, strikes, lockouts or other labor disputes, or events or circumstances beyond its reasonable control, but Kitco shall use commercially reasonable endeavors to minimize dangers or losses to the Customer as a consequence of such events.
16.6. Joint Accounts
For joint accounts with Kitco, Kitco is authorized to act on the instructions of either one of the named Customers, without further enquiry with regard to any and all transactions in any way related to the joint account and the disposition, transfer, deposit or withdrawal of any amount or of any or all of the funds or Kitco Pool held in the joint account. Kitco shall have no responsibility or obligation for further enquiry into such apparent authority, and shall bear no liability and disclaims all responsibility for the consequences of any acts or omissions made in reliance upon such instructions.
17. Customer Obligation and Liability
17.1. Ownership and Authority
Customer hereby warrants that it is either the owner or the authorized agent of the owner of any Precious Metal Bullion or Scrap Metal sent or brought to Kitco for the purpose of a Customer Sale Transaction or a Scrap Metal Transaction. Customer further warrants that it is authorized to accept and is accepting the terms of this Agreement not only for itself but also as agent for or on behalf of all other parties who have or may hereafter have any interest in said Precious Metal Bullion or Scrap Metal.
17.2. Compliance and Due Diligence
The Customer is responsible for complying with all laws of the jurisdiction from which the Customer accesses the Kitco Website or receives the services described herein, and the Customer shall at all times be solely responsible for obtaining any authorizations required by any authoritative body in such jurisdiction.
The Customer has carried out reasonable due diligence to ensure that the purchase and sale of Precious Metals as provided under these Terms and Conditions is not contrary to any laws or regulations of the Customer’s governing jurisdiction, and that the acceptance of these Terms and Conditions by the Customer and the entering into of a Customer Purchase Transaction or Customer Sale Transaction or Scrap Metal Transaction is not contrary to any federal, provincial, state or any other law or regulation applicable to the Customer.
17.3. Protection of Electronic Identification Information
It is the Customer’s obligation to ensure that its Electronic Identification Information is kept secret. The Customer agrees to keep their Electronic Identification Information and all components thereof secret and safe to prevent unauthorized use.
17.4. Notification
If a Customer believes that any transaction or balance recorded in their account is incorrect, the Customer must contact Kitco immediately to notify Kitco of suspected unauthorized use of Customer’s Electronic Identification Information. Customers are responsible for ensuring the accuracy of the information displayed in their account, howsoever accessed. Kitco will not be held liable should a Customer fail to disclose any unauthorized use of Electronic Identification Information and Customer’s Kitco Accounts.
17.5. Customer Liability
Kitco will be under no obligation to confirm the actual identity or authority of any user of the Electronic Identification Information or any component thereof.
The Customer will not be responsible for any unauthorized use of Electronic Identification Information occurring after notifying Kitco of the suspected unauthorized use as indicated in sub-section 15.4 above.
The Customer represents and warrants to Kitco that any funds or Precious Metals advanced, remitted or sold by the Customer to Kitco in connection with a Customer Account, a Customer Sale Transactionand/or a Customer Purchase Transaction will not represent proceeds of crime for the purposes of the PCMLA Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”). The Customer further represents and warrants to Kitco that none of the funds provided by the Customer to Kitco: (i) have been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States, or any other jurisdiction; or (ii) are being tendered on behalf of a person or entity other than the Customer, and the Subscriber will promptly notify Kitco if the Customer discovers that any of such representations cease to be true and provide Kitco with appropriate information in connection therewith;
18. Intellectual Property, Trademarks, Logos
All of the intellectual property rights including without limitation trademarks, service marks, trade names, copyright and other rights used or embodied in this website are and will remain the sole property of Kitco (or its suppliers where applicable).
All information and material supplied by Kitco, constitutes part of Kitco's confidential and proprietary information and no Customer participating in any of its programs may reproduce, copy or disclose such information without the prior written consent of Kitco.
No party accessing this website may attempt to tamper with, modify, reverse engineer, gain unauthorized access to, or in any way alter any software used in Kitco’s programs or comprising Kitco’s website.
19. Maintaining an Active Kitco Account
19.1.Kitco reserves the right to deem the Customer’s Kitco Account as inactive if there exists no account activity in the account for a period of eighteen (18) consecutive months.
19.2.Where the Customer's Kitco Account has been deemed inactive in accordance with section 19.1, Kitco may, at its discretion, deactivate the Customer's Kitco Account following sixty (60) calendar days prior written notice to the Customer.
19.3.The Customer’s Kitco Account will be assessed individually for activity; as such, the deactivation of one Kitco Account shall be considered separately from any other existing Kitco Account.
19.4.Kitco may also, at its discretion, deactivate the Customer’s Kitco Account by giving the Customer a written notice to that effect upon or following the termination of the Agreement in accordance with Section 13.2 of this Agreement.
19.5.If, upon the Kitco Account being deactivated, there exists a positive balance therein, the Customer may make arrangements to transfer balance of cleared funds, stored Precious Metal Products, Kitco Pool and Kitco VaultChainTM, the Customer may transfer the positive balance to another Kitco Account.
19.6.Where the Customer makes a transfer of the positive balance, the transaction will be subject to all applicable processing and administrative fees.
19.7.Where there is a positive balance in the Customer's Kitco Account being deactivated and the Customer fails to make a transfer of the remaining balance of cleared funds, stored Precious Metal Products, Kitco Pool and Kitco VaultChainTM within five (5) years from the date the Customer’s Kitco Account has been deactivated, the Customer's Kitco Account will be deemed to be abandoned, and will be closed. Any balance in the Customer's Kitco Account will be removed and held by Kitco in reserve for a further five (5) years. The remaining balance may still be claimed by the Customer during this 5-year period, after which time any remaining balance (including cleared funds, stored Precious Metal Products, Kitco Pool and Kitco VaultChainTM) will be forfeited and paid to Kitco.
19.8.If, upon deactivation, there exists a negative balance in the Customer's Kitco Account, the Customer or its successors and assigns shall be required to settle any such negative balance with Kitco.
20. Miscellaneous
20.1. Insolvency
In the event: (i) that a receiver or trustee is appointed in respect of the property and assets of the Customer as a result of the latter’s insolvency or bankruptcy, and (ii) that Kitco is requested by the receiver or trustee to remit any Customer holdings, the receiver or trustee will direct any Customer holding liquidation requests to Kitco. Any inquiries by the said trustee or receiver regarding the present Agreement between the Customer and Kitco shall be directed to Kitco.
20.2. Death of Customer
20.2.1 Individual Account
In the event of Customer death, Kitco will require full documentation of the Customer’s estate, including a copy of a death certificate, will or trust documentation, and any probate information if applicable. Upon confirmation of a Customer death, Kitco will freeze the Customer’s account and act in accordance with the conditions set out in the Customer’s will, or as instructed by the trustee of the Customer’s estate. It is the sole responsibility of the Customer to ensure that such documentation will be provided for in the event of death.
20.2.2 Joint Account
Except for accounts where either of the Customers in a joint account with Kitco resides in the Province of Quebec, in the event of death of any one of the named Customers, the deceased Customer’s interest in the Account will pass automatically to the surviving Customer.
It is agreed that in the event of death of one of the named Customers, the surviving Customer shall immediately give Kitco written notice thereof, and Kitco may require such papers, retain such portion and/or take any measures it deems advisable, including restricting transactions or liquidating the joint account, to protect itself against any tax, liability, penalty or loss under any applicable laws. The estate of the deceased Customer and the surviving Customer shall continue to be liable, jointly and severally, to Kitco for any obligation incurred prior to Kitco’s receipt of written notice of the death of such Customer or for any loss, damage or costs incurred by Kitco, including reasonable attorney fees, in any dispute between the estate of a deceased Customer, the surviving Customer or a third party.
20.3. Changes to Terms and Conditions
Kitco reserves the right to amend these Terms and Conditions, any applicable fees and charges, or any services, rights or obligations provided for herein at its sole discretion, at any time, without prior notice to the Customer. Acceptance of these Terms and Conditions is limited to the acknowledged transaction and is not applicable to any future transactions. The Customer will be responsible for accepting the Terms and Conditions for every subsequent transaction.
20.4. Applicable Law
This Agreement shall be construed in accordance with and governed by the laws applicable in the Province of Quebec and the laws of Canada applicable therein. The Parties hereby irrevocably submit to the non- exclusive jurisdiction of the Courts of the province of Quebec in respect of all matters or disputes arising from the Agreement, except as otherwise specifically stated herein.
20.5. Binding Effect
This Agreement is binding upon the parties hereto and their respective successors, heirs, legal representative and permitted assigns.
20.6. Severability
In the event that any provision in this Agreement is determined to be invalid, illegal, or unenforceable, such determination shall not affect the validity and enforceability of any other remaining provisions of this Agreement.
20.7. Language
The parties hereto have expressly required that this agreement and all deeds, documents or notices relating thereto be executed in the English language. Les parties aux présentes ont expressément convenu que cette entente et tout autre acte, document ou avis y afférent soient rédigés en anglais.
20.8. Privacy
Kitco respects your privacy. Our privacy policy is available at: https://online.kitco.com/help/privacy_policy.html
Schedule of Transaction Restrictions
1. Customer Purchase Transaction Restrictions
Customer Purchase Transactions submitted by Customers residing or having their principal place of business in either Canada or the United States
Customers who have Open Transactions with a total value at the sizes identified in the table below (USD for U.S. dollar transactions, in CAD for Canadian dollar transactions) are required to provide the relevant collateral in order to confirm a Customer Purchase Transaction. The Customer acknowledges that providing a valid credit card does not constitute payment, and confirms they will abide by the payment terms as stated in Section 4.
| Open Transaction (Size) | Collateral Deposit Requirement (As % of Open Transaction Total) | Required Forms of Collatera |
|---|---|---|
| Up to and including $50,000 | Valid Visa or Mastercard | |
| Greater than $50,000 and up to $100,000 | 15% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
| Greater than $100,000 | 25% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
Customer Purchase Transactions submitted by Customers residing or having their principal place of business outside of Canada and the United States
Customers who have Open Transactions with a total value at the sizes identified in the table below (USD for U.S. dollar transactions and in USD equivalents for transactions in all other currencies, rounded up to the nearest $1000) are required to provide relevant collateral in order to confirm a transaction purchase price. The Customer acknowledges that providing a valid credit card does not constitute payment, and confirms they will abide by the payment terms as stated in Section 4.
| Open Transaction (Size) | Collateral Deposit Requirement (As % of Open Transaction Total) | Required Forms of Collatera |
|---|---|---|
| Up to and including $20,000 | Valid Visa or Mastercard | |
| Greater than $20,000 and up to $100,000 | 15% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
| Greater than $100,000 | 25% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
2. Customer Sale Transaction Restrictions
Customer Sale Transactions submitted by Customers residing or having their principal place of business in either Canada or the United States
Customers who have Open Transactions with a total value at the sizes identified in the table below (USD for U.S. dollar transactions, in CAD for Canadian dollar transactions) are required to provide the relevant collateral in order to confirm a Customer Sale Transaction. The Customer acknowledges that by providing a valid credit card they will abide by the payment terms as stated in Section 4.
| Open Transaction (Size) | Collateral Deposit Requirement (As % of Open Transaction Total) | Required Forms of Collatera |
|---|---|---|
| Up to and including $50,000 | Valid Visa or Mastercard | |
| Greater than $50,000 and up to $100,000 | 15% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
| Greater than $100,000 | 25% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
Customer Sale Transactions submitted by Customers residing or having their principal place of business outside of Canada and the United States
Customers who have Open Transactions with a total value at the sizes identified in the table below (USD for U.S. dollar transactions and in USD equivalents for transactions in all other currencies, rounded up to the nearest $1000) are required to provide sufficient collateral in order to confirm a transaction sale price. The Customer acknowledges that by providing a valid credit card they will abide by the payment terms as stated in Section 4.
| Open Transaction (Size) | Collateral Deposit Requirement (As % of Open Transaction Total) | Required Forms of Collatera |
|---|---|---|
| Up to and including $20,000 | Valid Visa or Mastercard | |
| Greater than $20,000 and up to $100,000 | 15% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
| Greater than $100,000 | 25% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
3. Scrap Metal Transaction Restrictions
Customers who have Open Transactions with a total value at the sizes identified in the table below (USD for U.S. dollar transactions, in CAD for Canadian dollar transactions) are required to provide sufficient collateral in order to confirm a Scrap Metal Transaction. The Customer acknowledges that by providing a valid credit card they will abide by the payment terms as stated in Section 4.
| Open Transaction (Size) | Collateral Deposit Requirement (As % of Open Transaction Total) | Required Forms of Collatera |
|---|---|---|
| Up to and including $50,000 | Valid Visa or Mastercard | |
| Greater than $50,000 | 15% | Valid Visa or Mastercard + Cleared Funds with Kitco, or Cleared Kitco Pool, or Cleared Kitco VaultChainTM |
Schedule of Accepted Payment Methods
Kitco accepts the following as methods of payment for transactions or for adding funds to a Kitco Account:
1. Customers residing or having their principal place of business in either Canada or the United States
Customers residing or having their principal place of business in Canada or the United States may use the following methods to pay for a Customer Purchase Transaction or to add funds to their Kitco Account, at the minimum holding periods defined below:
| Payment Type | Holding Period | Payment Limits – EXISTING CUSTOMERS | Payment Limits – NEW CUSTOMERS |
|---|---|---|---|
Cleared FOA Bank Wire Online Bill Pay - | No Holding Period | No Limit | No Limit |
Cashier’s Check Bank Draft Bank Money Order | 3 Business Days | $50,000 | $25,000 |
| Personal / Company Check | 5 Business Days | $50,000 | $25,000 |
| E-Check (ACH) (United States Only, USD) | 3 Business Days | $50,000 | $25,000 |
| Credit Card/PayPal | No Holding Period | $25,000 per transaction | $10,000 per 14-day period |
Customers who wish to add funds to their Kitco Account in either Euros or British Pounds may only do so by bank wire.
2. Customers residing or having their principal place of business outside of Canada and the United States
Customers residing or having their principal place of business outside of Canada and the United States may add funds to their Kitco Account by bank wire only and may pay for a Customer Purchase Transaction by bank wire or using cleared funds on their Kitco Account.
3. Settlement options and fees on Proceeds from Customer Sale Transactions, Scrap Metal Transactions and Return of Funds
Settlement options, along with the corresponding fees and transaction limits, for Customer Sale Transactions, Scrap Metal Transactions and Return of Funds are as follows:
| Holding Period | Customer Residence or Principal Place of Business Canada USA All Other Countries | Maximum Transaction Limit |
|---|---|---|
| Check by regular mail (USD or CAD transactions only) | No Fees No Fees Not Available | No Limit |
| Check by courier (USD or CAD transactions only) | CAD 30 USD 30 Not Available | No Limit |
| Bank Wire on CAD transactions | CAD 40 CAD 60 CAD 60 | No Limit |
| Bank Wire on USD transactions | USD 60 USD 40 USD 60 | No Limit |
| Bank Wire on GBP transactions | GBP 50 | No Limit |
| Bank Wire on EUR transactions | EUR 60 | No Limit |
| Deposit as funds on Customer’s account (all currencies) | No Fees | No Limit |
| Conversion to Kitco Pool or VaultChainTM | No Fees | No Limit |
| Precious Metal Bullion products normally carried by Kitco | Fabrication, shipping & insurance fees may apply depending on product | No Limit |
Schedule of Fees
This schedule outlines fees that Kitco may charge the Customer in relation to Precious Metal Bullion, Kitco Pool products, Kitco VaultChainTM products, Scrap Metal Transactions, and related services. Such fees, which are subject to change from time to time at the discretion of Kitco, are also posted on the Kitco Online Store. Unless otherwise specified, all fees stated are in both US and Canadian Dollars. Fees related to a transaction placed in British Pounds or Euros will be converted based on the US Dollar exchange rate at the time the transaction is submitted.
Kitco Pool transactions are subject to the following applicable fees. These fees also apply in transactions in which Kitco Pool is purchased or sold in combination with Precious Metal Bullion.
| Transaction | Fee Amount |
|---|---|
| Customer Purchase Transactions submitted by telephone or in person | $14.99 inclusive of applicable taxes |
| Customer Sale Transactions submitted by telephone or in person | $14.99 inclusive of applicable taxes |
| Customer Purchase Transactions submitted online | $8.98 inclusive of applicable taxes |
| Customer Sale Transactions submitted online | $8.98 inclusive of applicable taxes |
Kitco VaultChainTM accounts and transactions are subject to applicable fees as follows:
| Service or Transaction | Fee Amount |
|---|---|
| VaultChainTM Account Opening | No Fee |
| VaultChainTM Administrative Fee | No Fee |
| VaultChainTM Storage Fee* | $100 annually |
| VaultChainTM Transaction Fee | variable fee – confirmed with each transaction |
3.1. Melt & Assay Fees
Fees are variable when a melt and/or assay are required, depending on the Precious Metals Bullion Products sold by the Customer to Kitco. However, if a Kitco representative can test Customer’s Scrap Metal with a scratch test, there will be no processing fees.
3.2. Handling Fees for Testing Scrap Metal
A handling fee of $70 (in USD for U.S. dollar transactions, in CAD for Canadian dollar transactions and in USD equivalents for transactions in all other currencies) applies. Said handling fee shall apply should Customer send Scrap Metal to Kitco for testing without completing a Scrap Metal Transaction.
| Fee or Service | Fee Amount |
|---|---|
| Fees on Returned Checks | $35 inclusive of applicable taxes |
| Fees on Transaction Cancellations | Market Loss + $50 inclusive of applicable taxes |
| Changes to Delivery Address | $20 inclusive of applicable taxes |
| Undeliverable Packages | $20 inclusive of applicable taxes |
| Shipping and Insurance Fees | Variable fee – confirmed with each transaction |
| Pick-up Fees | $70 minimum, varies depending on location |
| Drop-off Fees | $70 minimum, varies depending on location |
| Fabrication Fees | Variable fee – confirmed with each transaction |