Physical only, in your possession? But, every solution has risk by Steve Netwriter
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 ):
Physical only, in your possession
I fully understand this point of view. But, I recommend:
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".