Gold Storage Outside the Banking System

We have already discussed the pros and cons of storing gold in your home. So, let’s take a closer look at this options and discuss the benefits in full.

The Benefits

There is a chance the government will confiscate your gold if times are hard and they need a little extra cash in the coffers. It’s fair to say that such a scenario is unlikely, even though it has happened before. But there are a few scenarios that are not unlikely, scenarios that could be equally disastrous for you and your investment:

  1. Financial Woe, the Greek Effect: Let’s assume that you have your gold and all of you other savings tied up in a commercial bank. You’re not alone, and millions of others will be in the same situation as you. Now let’s assume that the economy collapses, the people and the government panic and everything turns sour overnight. The government will expect everyone to rush to the bank and to withdraw their savings. Such a rush of transactions will cripple any economy, and it could be the end for a economy that is already experiencing problems. To stop this, the government will likely do what the did in Greece and in Cyprus: they will restrict how much you can withdraw and will put complete blocks on large amounts. In Greece, even rich citizens with millions in the bank were being restricted to withdrawals of just a few hundred Euros a day, which means it would take them decades to access all of their cash.

  2. Bankruptcy: What if the country is fine, and you are the one that is facing financial difficulty? If you are declared bankrupt, it doesn’t necessarily mean that you lose everything. Bankruptcy laws are rarely that cut and dry, which is why everyone from rich businessmen like Donald Trump to super-rich rappers like 50 Cent have been able to declare bankruptcy and still live the life of luxury. The main reason for this is that the wealth of their money is tied up in things that the government can not take away from them. If you have a stockpile of gold held within reach of a central bank, you can guarantee they will claim that to pay off your debts. If that gold is held overseas, it’s still yours to do with as you please.
  3. Lehman brother bankcruptcy

  4. Price Manipulation: Traditionally, the central banks leased gold to gold trading banks and depositories. This allowed the central bank to profit from gold that would otherwise sit idle in their vaults, doing nothing but gathering dust. But this activity is also a form of price manipulation, as it was established as a way of fixing the Gold Lease Rate. This is what the LIBOR scandal was all about, and it opened a lot of eyes in the investment community, convincing many of something they had suspected all along: your gold should never be kept within reach of the central banking system. Of course, times have changed, central bank reserves are low and there is no one willing to lease gold for such a low price.

GoldBroker solution, the best one ?

At GoldBroker you have the choice between the two safest options when it comes to investing in gold. You can either have your order shipped to your address (free of charge if you reside within the United States), at which point you can store it in your home, or you can arrange for it to be stored within one of their secure vaults.

These are all privately owned and they are some of the safest vaults in the world. They partner with Malca-Amit, a private operator that runs indecently from the banking system was was established back in 1963. Their vaults feature the latest technology to guarantee complete protection across the board, which is why they are a market leader in this industry.

All of these vaults are strategically placed to ensure that you don’t have to travel thousands of miles and cross several continents to access them. There are vaults located within New York, Singapore, Switzerland and Toronto. You don’t have to live in or near these areas in order to store your investment there, and if you don’t want to, you don’t even have to travel to these areas. One of the best things about investing in a bullion storage solution such as the one offered by some website is that fact that you can invest, sell and profit without ever even touching your gold.

Everything they sell was created to bullion standard and is available for close to spot price. They don’t deal in numismatics or “art bars”, and you won’t find anything with an inflated premium that can not be matched by its intrinsic value. They try to keep the prices as close to spot as possible, and they also deal directly with the biggest refineries, all of which are on the Good Delivery list.

This allows them to put an order in directly with the refinery and then have that order shipped to your vault of choice. And that’s assuming that they don’t have your product in stock, because at any given time some platform can cover thousands of orders just with the stock that they currently hold in their vaults. So, if you order several hundred gold bars from them and you want these stored in a secure vault, they can just run an inventory check, allocate the same amount of available bars to you, and then keep them where they are.

This allows them to keep costs down and means they can offer precious metals for a fraction of the price you would pay a dealer. What’s more, all GoldBroker members are given a secure online account. This keeps track of all of your orders and it also lists all of your current assets, along with the price you paid and their current worth. There is also a secure messaging system, through which you can contact their dedicated staff at any time of the day, getting the answer you want or the solution you need.