Buy And Store Gold

  • Home
  • Reviews
    • Hard Assets Alliance
    • The Independent Speculator
    • BullionVault
    • GoldMoney
    • JM Bullion
    • Global Gold
    • Texas Precious Metals
    • Titan Closet Vault Gun Safe
    • Fort Knox Safes
    • SierraBase FoxLok Hidden Safe
  • Features
    • Gold College Fund
    • Store Gold At Home
    • Store Gold Offshore
    • How To Buy Platinum Coins And Bars
    • Fake Coin Tester
    • Reporting Requirements For Offshore Gold, Silver Storage Accounts
    • Historical Gold Prices โ€“ Year End Gold Price Since 2000
    • CombiBar Gold & Silver Divisible Bullion Bars
    • What Happened To Louis James?
  • Articles
  • About
You are here: Home / Buy and Store Gold / What Is The Importance Of Buying Physical Gold?

August 23, 2011 By Roger Bond

What Is The Importance Of Buying Physical Gold?

putin-holding-physical-gold-barMost all gold bugs and gold websites tout the importance of buying physical gold and warning of EFT’s and other methods of buying paper gold.

What’s the big deal?

Here is a statement by BullionVault:

Why does BullionVault make sure you get outright physical ownership of gold? After all, it would be so much easier to offer you a gold account.

The reason is risk of default. One of the patterns which recurs throughout history is that growing financial sophistication leads to widespread expansion of credit and exposure to default, and few people successfully avoid it when it matters.

Banks, pension savings, mortgage guarantors and all the major financial institutions on which we depend are now tied up in a web of undelivered assets. A is the registered owner of a bond payable by B, the principal on which has been credit-swapped out to C. The terms are controlled by a deed drafted by an investment bank D, which itself receives the interest, which has been aggregated with 30 others and sold notionally to E. E is foreign, and flattens the FX risk with a bank F, who sells and rolls a future on his long currency book, which is bought by another bank for an assured profit by running the position against a higher yield bond bought from a junk-status borrowing customer, which has been insured against the risk of default with G, a major insurer, who happens also to be A.

These are the styles of relationship which dominate the world in which ordinary peoples’ savings are bound up, and they are profitable in the short term. This is why financial rather than commercial companies increasingly dominate the list of the top companies in America and Europe. They find it easier to make profits by providing credit and assuming eventual repayment, rather than by actually demanding settlement; a habit which could put off no end of potential customers.

All our common savings products are bound up in these webs. At BullionVault we do not know when and where these webs will break, and, with the greatest possible respect, we don’t think you do either. But it is so certain that they will break, and at an unexpected place and time, that we believe every forward thinking person with a respectable private reserve would do well to opt out with at least part of their savings.

A purchase of gold is a good way to do this. But gold accounts, indexes, spread bets, and futures all fail to extricate the buyer from the web of dependencies, because they are based on undelivered gold. The only way to opt out of the web is to own physical property outright.

This is why BullionVault has concentrated on being the best way in the world to do just that.

Well said.

Physical gold is no one else’s liability. No counterparty risk.

If you do not actually hold it in your own hand (some risk involved!) then you must have it with a trusted fiduciary, like BullionVault, who is audited as a guaranty of their honesty.

Get a free gram of gold when you open a free account at BullionVault

Filed Under: Buy and Store Gold Tagged With: bullionvault, physical gold

Recent Posts

  • The Independent Speculator Promo Code | Discount
  • John Mauldin Buying Uranium Stock
  • Is John Mauldin Buying Gold?
  • International Speculator Uranium Stocks
  • Why Gold Stocks Can Go 10X

Weights & Measures

Precious Metals Use TROY Ounces

1 oz = 31.1034768 g
1 g = .0321507466 oz
1 kg = 32.1507466 oz
1 t = 32,150.74656863 oz

g = gram
oz = ounce
kg = kilogram
t = metric ton

This site may receive some compensation from certain companies mentioned or recommended. It does NOT affect the price you pay for services or sway our opinion.

BuyAndStoreGold.com

  • About
  • Disclaimer
  • Disclosure Policy
  • Privacy Policy
  • Terms Of Use
  • Contact Us

Featured Reviews

  • Hard Assets Alliance Review โ€“ Gold Investing Made Easy
  • The Independent Speculator Review
  • BullionVault Review โ€“ Least Expensive Way To Invest in Gold
  • GoldMoney Review
  • JM Bullion Review

What Can We Help You Find?

Recent Articles

  • The Independent Speculator Promo Code | Discount
  • John Mauldin Buying Uranium Stock
  • Is John Mauldin Buying Gold?

Follow us on Twitter!

Copyright © 2025 ยท BuyAndStoreGold.com