 Physical Bullion
Investments
Keeping Tangible Assets Safe and Secure
Michael B. Clark
Aug 28, 2007
Be they rare coins, stock certificates,
jewelry, personal mementos or family heirlooms, how we choose
to protect the assets we deem valuable (and perhaps irreplaceable),
is an important consideration involving many factors.
Most of us choose to secure
our valuables and tangible assets in different ways, depending
on our individual circumstances, experience and levels of trust.
For example, if we need to access them frequently (e.g., jewelry),
or if they are important, but replaceable and not inherently
valuable (e.g., a stock certificate), we may simply keep them
at home or hold them in a nearby safe deposit box. Some
of us, on the other hand, may elect to keep them with an institution
that specializes in providing custody or safekeeping services.
But either way, when it comes to protecting valuables, one size
does not fit all.
Where precious metals bullion
or rare coins are concerned, some individuals literally bury
their coins and bullion in their backyards, while some hide
them in their garages, attics or basements. Though this approach
keeps the coins/bullion close and within reach, it also presents
[a] number of potential pitfalls. In these
circumstances, the owner is likely self-insuring their value,
and loss due to theft or destruction by fire - precious metals
do melt - are two significant risks the owner assumes. Also,
getting the coins/bullion to a dealer quickly (and safely) for
sale, when prices may be changing rapidly, is another, less obvious
market risk the owner bears when self-storing these assets.
Others may choose to hold
these items in their bank safe deposit box. While generally
speaking, a safe deposit box provides a high degree of physical
security for the assets, the owner must obtain his/her own insurance
protection for them, as banks generally do not insure the contents
of their customers' safe deposit boxes. And again, selling one's
coins and/or bullion in a timely and safe fashion during a fast
moving market can be a serious concern when stored in a remotely
located safe deposit box where access is usually restricted to
specific business hours.
Still others, for "convenience"
reasons, may decide to leave their coins/bullion items on
deposit with the dealer from whom they purchased them. BUT,
unless the dealer is a known and preferably regulated entity,
with a strong financial footing and a solid reputation for service
and delivery, this option is probably the riskiest. History is
replete with examples of dealers "storing" assets they
"sold" to their customers, but never bothered to buy
in the first place.
Probably the safest and most
flexible means of securing one's coin and/or bullion assets is
to use the personal safekeeping services offered by one of
the professionally managed commercial depositories that exist
for this purpose. Generally speaking, for a reasonable custody
fee, these institutions will accept delivery of coins and bullion,
and store them within a highly secure and insured vault environment
in a personal storage account titled in the owner's name. Transaction
confirmations and periodic account statements are then provided,
so the owner always knows the exact status of his/her holdings.
And, purchases and sales can be transacted with reputable dealers
operating at the same location in timely and secure fashion right
over the phone.
How to properly secure one's
valuable personal effects and tangible assets is an
important consideration for all of us. Perhaps the best
advice is to choose the storage option for your coins/bullion
that enables you to sleep most soundly at night.
In order to learn more about
the various options for storing bullion please read:-
http://www.gold.ie/Storing_Bullion_Internationally.htm.
Michael B. Clark
email: info@gold.ie
Michael B.
Clark is a consultant to Gold and Silver
Investments
Limited, Ireland's Asset Diversification and Wealth Preservation
Specialist. He is the President of Solidus Associates, LLC
of Wilmington, Delaware, and has served in the precious metals
industry for 25 years. He oversaw Deak-Perera's Precious Metals
Certificate Program, America's largest precious metals investment
program, in the early 1980s. Later he became Vice President of
Precious Metals at Wilmington Trust Company, and President of
both Delaware Depository Service Company and First State Depository
Company. He obtained licenses for Wilmington Trust and DDSC to
operate as Nymex and Comex depositories.
321gold Ltd
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