While we understand the benefit to keeping a small allocation of precious metals near to hand, there are dangers in storing gold in a non secure location.
Here is the founder of BullionVault, Paul Tustain, replying to those who insist on keeping their gold at home.
“I know you will never trust a remote service to look after your gold, but try to understand the history. The problem with private possession is that your big risk is exchange controls which trap your gold (emphasis ours) where you can’t sell it or use it, leaving feeling thoroughly cheated. Exchange controls are introduced when currency enters a crisis. They always apply on bullion too, otherwise everyone converts their currency to gold and walks out with it. A second risk is the hideous cost of insurance on gold stored privately.
Your probability of profiting fully and safely from the gold you own is significantly increased by holding it outside your domestic jurisdiction in professionally accredited market vaults. If you accept that (and you should investigate it carefully if you don’t) you need to find a trustworthy overseas mechanism. BullionVault is trusted by more than others because the gold is physical (not paper) because it is held as your personal property away from our balance sheet, so would be unaffected by our financial failure (check out custody law if you don’t understand this) and because it is not held by us but in third party accredited professional bullion market vaults who produce a daily bar list which we publish on-line, and reconcile publicly to the register of owners – to the gram – every day. No-one else offers this level of transparency and protection.
We know some people insist on having gold at home. I think their advice is poor. Fine, a little at home but the bulk should be in the remote location which is most likely to allow you to sell at full price, and use the proceeds. We are not for everyone’s taste, but I like to tell neutrals that your solution – gold stored at home – incurs each of (i) high dealing costs (ii) extremely high insurance costs and (iii) poor prospects of profiting in exactly the circumstance you are anticipating when you buy gold. So it’s not such a great idea.
BullionVault was built to allow the sort of safe and efficient gold and silver accumulation which I sought as a private investor myself. I use it for myself. I’m always happy to discuss the safety aspects with those who prefer to store gold at home. A surprising number of them change their minds when they understand the issues of law and risk which I have introduced here. There are quite a few more issues too, like the controls which prevent management from shipping the gold to Brazil for their own benefit! It’s all taken care of in our FAQs – but by all means ask me.”
We actually responded to Mr. Tustain on this issue, because here in America, while you probably can get insurance on gold stored at home we would like to point out these issues:
- First you have to declare and prove value to your insurance company
- Next you have to disclose details, in addition to what you just did above, of how you are storing it – do you have a safe, is it buried in the backyard, etc
- Finally, you have to pay outrageous premiums for that insurance
- Oh, and ONE MORE THING, you have to be comfortable that everyone you told at the insurance agency and underwriting company is 100 percent honest, trustworthy and CLOSE MOUTHED!
This is why we recommend companies like BullionVault and even use them ourselves. Avoid this ever increasing risk from out of control, desperate politicians and bankrupt governments.
Did you know that they will give you a free gram of gold (about US$65) if you open an account? Get your free gold right now!
