Thursday, October 30, 2014

Why You Should Own Physical Gold – Kyle Bass Video

by Roger Bond on January 8, 2013

Physical Gold Is True OwnerShip

First take 2 minutes to watch this great little video where Kyle Bass explains why, as a fiduciary for a Texas university he did not rely on paper gold to protect wealth but instead says it was an easy decision to take physical delivery of the gold and not rely on the Crime-Ex, I mean, Comex, to give him gold exposure in the portfolio.

So, as Kyle Bass stated, and many, many before him have stated, if you want to own gold and KNOW that you own it, control it, and it will protect your wealth, then you cannot rely on paper gold, you must take delivery in one way or another.

If you buy GLD or our preference SGOL in your brokerage account you can profit from an orderly rise in the price of gold over time. Yet if things ever become DISORDERLY and you want to have the gold in your possession for whatever reason:

  • You don’t trust your broker and all of the counter parties involved
  • You need the gold to barter for daily needs
  • You don’t trust the exchanges to make good on GLD or SGOL’s claims on gold or gold contracts (wise thought in the aftermath of MF Global’s default)

So How Do You Own Physical Gold?

Owning physical gold is easy to do – currently. Although demand often threatens to out-strip supply.

Maybe you call up OnlyGold.com, place an order, wire funds and have them ship it to you insured US Mail. At that point the gold will be in your physical possession and your main concern becomes keeping it safe from burglary and cosmetic damage from fire.

Maybe a Titan Closet Vault fireproof home safe is in your future.

Midnight gardening is also an option for those of you comfortable with that.

Obviously having the gold in your own hot little hands is physically taking possession and not subject to any counterparty risk, exchange risk, etc. Yet not everyone is comfortable with that; yours truly being one of them.

Easy, Sleep Easy Ways To Own Physical Gold

What I prefer for physical ownership of gold is a private, trustworthy entity that takes physical possession of the gold and stores it in safe, secure vaults – optimally in other jurisdictions than the one you live – and insures it with the largest insurance companies who are most unlikely to default.

Is there some risk that way? Yes, but there is risk in having the gold stored at home too, and there is likely no (affordable) insurance for storing it even in a home safe, let alone your back 40.

Certainly Kyle Bass is trusting someone to store that university gold for them, it’s not stored on campus or in Kyle’s (non-existent, he lives in Texas) basement.

The companies you find reviewed here at BuyAndStoreGold we have found to be trustworthy private entities whose best interest is served by being honest with their customers.

Each company, however, operates differently and is a “perfect fit” to a different investor. Many of us can diversify between these companies, and countries of storage, to reduce risk even further.

The physical gold solution that is accessible to even the smallest net worth investor, offering quality services at the LOWEST PRICES is BullionVault. Read our full review here

If you want to skip ahead and check out BullionVault then click here

A firm similar to BullionVault with more storage jurisdictions, slightly higher costs, and higher pain factor to do business with is GoldMoney. Check them out here

Companies that have customer service people you can talk to and deal in physical bars and coins allocated to you:

Level Of Trust

One thing to keep in mind when reading articles here at BuyAndStoreGold.com, this is not theory to us, it’s not research or even a few phone calls.

We have TRUSTED these companies with our own money, in some cases met with the principals of the firm personally, other times via phone.

But, again, most importantly, we have put our money where our digital ink is. (Some may offer us referral fee for sending them business, others do not, but that makes no difference in what we say about them nor does it increase your costs in any way – see our Disclosure for more info).

As such, we appreciate you mentioning us in any applications you fill out where the opportunity is presented to mention a referrer. Thanks.

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{ 6 comments… read them below or add one }

morgan January 8, 2013 at 3:03 pm

I never knew this, thank you for sharing all this information with me

Reply

John Stewart January 8, 2013 at 6:34 pm

After watching the video I would only hold the gold myself.

Reply

Sharon Meier January 8, 2013 at 9:01 pm

You off a lot of good information for investments. Knowledge is power.

Reply

Dominic Wells January 8, 2013 at 10:05 pm

For some reason owning gold or buying it seems to have negative connotations amongst people. Friends either think “You won’t get rich that way” or “It is too expensive” but I’m glad you are out there providing good advice instead.

Reply

Paul January 8, 2013 at 10:37 pm

Gold is definitely a great way to protect your wealth.

Reply

LisaM January 9, 2013 at 8:09 am

I want to own physical gold/silver but my husband thinks I’m being too pessimistic about the future. Trying to convince him is difficult.

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