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    Physical Risk of Gold

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    Florian Fisher
    Buying gold bars and coins exposes the investor to the risk of loss and theft. Costs are involved to mitigate this risk. The transport of gold needs to be insured, gold has to be kept in a personal safe at home, or, better, in the bank’s safety deposit box. Here, renting fees incur.

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    Physical Risk of Gold

    Uploaded by

    Florian Fisher
    58 views11 pages
    Buying gold bars and coins exposes the investor to the risk of loss and theft. Costs are involved to mitigate this risk. The transport of gold needs to be insured, gold has to be kept in a personal safe at home, or, better, in the bank’s safety deposit box. Here, renting fees incur.

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    Buying gold bars and coins exposes the investor to the risk of loss and theft. Costs are involved to mitigate this risk. The transport of gold needs to be insured, gold has to be kept in a personal safe at home, or, better, in the bank’s safety deposit box. Here, renting fees incur.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    58 views11 pages

    Physical Risk of Gold

    Uploaded by

    Florian Fisher
    Buying gold bars and coins exposes the investor to the risk of loss and theft. Costs are involved to mitigate this risk. The transport of gold needs to be insured, gold has to be kept in a personal safe at home, or, better, in the bank’s safety deposit box. Here, renting fees incur.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 11

    E

    I V
    S

    EX
    C
    L
    Physical
    U

    Risk of Gold
    and how to reduce it
    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. Buying gold bars and coins exposes the


    investor to the risk of loss and theft

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. Costs are involved to limit this risk


    2. The transport of gold needs to be insured
    3. Gold has to be kept in a personal safe at
    home or, better
    4. In the bank’s safety deposit box
    5. Here, renting fees incur

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. A bank vault is probably the safest place for


    storing gold
    2. However, investors should not believe that
    the bank will store the precious metal for
    generations

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. HSBC customers had to face this situation


    2. The bank asked end of 2009 its small retail
    customers to remove their gold from the
    banks’ New York vault
    3. This resulted in an armada of armored cars,
    bringing gold out of New York

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. Another advantage of a bank safety deposit


    box is that the gold is not immediately
    available
    2. As it can be only accessed during bank
    hours

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. Another issue is the insurance limit


    2. In Germany, for example, bank safety
    deposit boxes are insured only until US$
    28,000
    3. With the current gold price, this corresponds
    to 20 gold coins (each 1 ounce), or 567 gram

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. How secure are safety deposit boxes?


    2. In the first quarter of 2010, thieves removed
    in a bank in Paris the contents of around 100
    safety boxes
    3. A couple of month later, in French Bank,
    nearly 200 safety boxes were cracked open
    and its contents stolen

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. Property insurance usually either has a


    limited cover for loss of physical gold, or
    does not cover it at all
    2. In both places, additional coverage needs to
    be purchased

    W W W. G O L D R AT E F O R T O D AY. O R G
    PHYSICAL RISK OF GOLD

    1. Besides safety boxes and personal safes at


    home, some people bury their gold on their
    property (midnight gardening)
    2. Will this reduce the risk of physical gold?
    3. In some ways yes, as it reduces the
    likelihood of theft
    4. However, those people should make sure to
    dig out the gold when they move (or die)
    W W W. G O L D R AT E F O R T O D AY. O R G
    INTERESTED IN MORE?

    Visit my blog:
    www.goldratefortoday.org

    Live Gold Rates,


    Independent Trading Advise and
    many Resources about Gold Investing
    W W W. G O L D R AT E F O R T O D AY. O R G

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