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« Kinross Gold: An Options opportunity? | Main | Gold, Oil and the US Dollar »
Tuesday
Jun102008

Owning physical Gold

Gold Bullion 10 June 2008

We normally deal with the buying and selling of gold and silver mining producers, as that’s where we have placed the lion’s share of our funds. However we do receive requests about what we own in terms of the physical bullion and where we store it.

The short answer is that we do not own very much of the metals but we keep a small amount of gold and silver in our possession just in case we ever have to move fast. We also appreciate its beauty and it is a pleasure to look at and feel and just to have around the place. However we do have an account where we keep a larger amount of precious metals in the form of coins and bars.

At this point we have to say that we have not researched every outlet that provides this sort of service, in fact we only looked at a few and made a decision. Since then there have been a number of new companies coming into this market offering a myriad of schemes for gold ownership. Maybe some of our readers can tell us which companies they use for this purpose and what form their investment takes. The company we use is the Bullion Vault. The gold is stored in vaults in New York, London and Zurich. When we started using their services they were one of the cheapest in terms of their charges but that may have been superseded by others in the market, it’s not something that we have kept a track on. According to their web site they have 4,6000 users, and manage 7 tonnes of gold. The web site contains a lot of information about them including a Daily Audit, has the usual FAQs and a brief history of the company and its directors. They have some good references from people in our industry such as Bill Bonner of The Daily Reckoning and Joel Bruce the Chief Executive Officer of goldprice.org.

To pay them a visit and learn more about gold ownership just click this link.

Have a good one.

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Reader Comments (8)

Physical metal in your possession is the best. However, you must have a secure location to keep it. Jason Hommel has some good tips on his web site www.silverstockreport.com
Beware of unallocated pool accounts as they may not even have the metal at all. If you choose allocated gold or silver accounts be very sure to get the serial numbers of the bars you are buying, if they won't provide them or try to switch you to another product, go to another source.
Never put your gold or silver in a bank safe deposit box because it is too easy for the government to get it. There are many places on the web to research safer ways to store physical metals. www.goldmoney.com for instance. Remember the problem with paper money and every other investment vehicle is it is someone else's promise. Even physical metal stored for you is someone else's promise. Physical metal in your possession is not dependent on someone else's promise. Do your homework. I hope this helps, Dave

June 10, 2008 | Unregistered CommenterDave

You should call yourselves the silver stock newsletter
since you don't cover which way prices are headed.

The Silver Price Newsletter???? I don't think so.

June 10, 2008 | Unregistered CommenterRobert Baum

Dave,

Thanks for your input it all helps to increase everyone’s awareness.

June 10, 2008 | Unregistered CommenterGold Prices

Robert,

Thanks for your observations about the sites name, but we couldn’t get the one you suggested at the time we were setting it up. We thought that we had covered silver fairly well with the articles listed below, but if this isn’t enough then its back to the drawing board for us to cover silver more often and post our predictions for silver.

Gold and Silver fail to make new highs
Silver Price Manipulation
Silver or Silver Stocks?
Silver: A Look Ahead
Silver and the 200-Day Moving Average.
Silver: Reached Our Target, What Next?
Silver Prices To Correct After the Next Fed Rate Cut!

June 10, 2008 | Unregistered CommenterGold Prices

I use to own my gold and silver at Goldmoney.com until
my accountant advisor, XXXXXXXXXXX, told me I must report the increase on my account as capital gains! Knowing next year Capital gains may be 28% I withdrew all of it and bought physical silver and gold eagles so that I won't EVER have to pay capital gains no matter how many I own.

It's not what you earn but what you keep!

June 10, 2008 | Unregistered CommenterT

Excellent point T. Just another reason to hold physical in your own possession. Dave

June 11, 2008 | Unregistered CommenterDave

Team,

Taxation varies depending on which jurisdiction that you are under, we couldn’t possibly advise on it. In New Zealand for example there is no capital gains tax, so I’m told.

June 11, 2008 | Unregistered CommenterGold Prices

I use Silver Saver for the discipline and cost averaging it affords. I also have some investment in Central Fund (CEF), if that is not out of context.

April 18, 2011 | Unregistered Commenterbimetalbug

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