There are two different types of investment in gold : « paper » gold or physical gold. We strongly recommend physical gold, and you’ll understand why after reading this page.
What we call “paper” gold consists mainly of certificates and ETFs that you can purchase directly from your bank. Their only advantage is their liquidity, meaning they can be sold rapidly.
Some websites advise against investing in any “paper” gold because there is a risk of default by the issuer of the certificate. You do not own the gold directly and there are counterparty risks.
In theory the issuer of a gold ETF owns the same quantity of physical gold as it issues certificates. One ETF share must correspond to a definite amount of physical gold owned by the ETF issuer.
But if the ETF issuer has sold more certificates than it has physical gold (hoping its clients will not ask for physical delivery), you are exposed to a risk of default on its part if all or many certificate holders ask for delivery, since there is not enough gold available.
This is exactly what is happening at the moment. Many ETFs have been issued by banks that sold more certificates
than they have physical gold.
One invests in gold to obtain maximum security. Don’t take the risk of investing in financial products that do not allow direct ownership of physical gold.
Follow this simple rule: If you can’t touch your gold, you don’t really own it.
Our exclusive recommendation is to invest in physical gold held outside of the banking system.
This is the safest way to own gold.
There are two ways of holding physical gold: gold coins and bars.
You will find websites on the internet offering shares in a gold bar held physically outside of the banking system.
But, once again, you must own your gold in your name and not share it with other investors, because you won’t be able to recuperate your gold in an emergency.
You must be certain of being able to obtain delivery of the gold you own. Make sure there are no extra fees for delivery, such as exit fees.
What we advise is the following:
Hold physical gold in your name in a secured warehouse (insured) outside of the banking system and in another country.
Do not listen to anyone recommending other types of gold investments.
Be clear with your investment objectives: You are aiming for absolute security in case of serious problems arising in the economy, so don’t take the risk of seeing your investment disappear. Own physical gold in your name.