Physical only, in your possession? But, every solution has risk by Steve Netwriter

3 replies [Last post]
Steve Netwriter
Steve Netwriter's picture
Last seen: 23 hours 35 min ago
Joined: 13/11/2008

I've been meaning to address this issue for many months. Finally I have a useful hook to get me started.

This is a phrase seen often on here (you know by who Smiling ):

Physical only, in your possession

I fully understand this point of view. But, I recommend:

BullionVault ......... and ......... Gold Money

For more details see this:

Why & Where to buy Gold & Silver

The above two companies are not like bullion banks or other paper gold/silver offerings. They allow people to buy real physical metal, and they simply store it for you. And that metal is insured. And ownership is clear, the people who bought the metal own it, not the company.

That removes MOST of the negative issues, but it does still leave SOME counter-party risk. The local government could confiscate, the companies COULD be some scam etc etc.

So, what of the idea "Physical only, in your possession"?

Is that really a better solution. Is it perfect?
And this is my hook:

Man stabbed in robbery of $750,000 in silver bars

A man from Chilliwack says he is traumatized after he was punched, stabbed and tied up by home-invading thieves who made off with his life savings in silver bars.

The two thugs, wearing what he described as fake police uniforms, unloaded a vault and spirited away with $750,000 in silver the man had bought as an investment last year.

The 52-year-old victim, still shaking after the robbery on Feb. 9, now wonders who among his friends or acquaintances might have been behind the brazen midday theft.

"Obviously, some friend, or friend of a friend, or friend of a family member, was told -- and they leaked it to the wrong people," he said.

This gives one example of why "Physical only, in your possession" is also not a perfect solution. It too has risk involved.

For this reason, I think each person has to weigh up the pros and cons of the various solutions, and make their own decisions. The decision will be based on personal circumstances and personal beliefs.

I do not think there is any perfect solution. All come with some form of risk.
The obvious solutions are:

1. Use companies like those I mentioned at the top.
2. Buy the physical and get it stored by a storage company.
3. Make personal arrangements.
4. Use a bullion bank.

I would not recommend #4.

IMO #1 & #2 offer some advantages over #3. Insurance. Also location can be both in various parts of the country you live in, and also in various countries. Depending on the country you live in, having the ability use other country's storage facilities may be attractive.

I suggest everyone think carefully about the pros and cons of all possible solutions. I strongly suggest you take note of "all your eggs in one basket".

The poor fellow mentioned in the article:

thieves who made off with his life savings in silver bars...
"It's the bulk of my life savings," said the man.

This at the very least demonstrates the danger of "in your possession".

Your friendly host. You can email me here: climategate.scandal at

I recommend buying gold and silver from BullionVault

shuttle's picture
Last seen: 44 weeks 3 days ago
Joined: 22/05/2010
Stolen Silver

Hi Steve - I wonder if the person who had his silver stolen had informed a lot of people about his actions? It must have taken some stealing as $750,000 of silver weighs approx. 665 kgs, about two thirds of a ton.

Capt Goodvibes
Last seen: 1 year 39 weeks ago
Joined: 06/04/2010
It all boils down to

It all boils down to responsibility.

Do you accept it, or do you palm it off onto someone else?

It is not possible to avoid all risk, and if it was would life have value?

Freedom is found in direct proportion to responsibility accepted, IMHO.

Last seen: 4 years 10 weeks ago
Joined: 18/10/2010
Loose lips sink ships containing ALL of your life's savings...

It was extremely unwise to store all of that metal in one location.
The metal was purchased all at once, so anyone in the supply/delivery/payment chain would be aware of the transaction along with anyone - family, friends, work associates - that the person shared any information with. And when all those other tongues start wagging, no one can know the outcome. Paraphrasing Fight Club,

"THE RULES OF PHYSICAL PMs - The first rule of PPMs is, you do not talk about (your) PMs. #2 - The second rule of PPMs is, you DO NOT talk about (your) PMs. ..."

In other words:

I would add Rule #3:


Personally, I would trust NO ONE except certain vetted/trusted family members to hold PPMs for me. I choose to accept that risk.


"Gold IS exactly what it is: NOT PAPER. Paper IS exactly what it is: NOT GOLD."

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