muses of the moment

August 11, 2012

Third party vaults

Filed under: Gold and Silver Investing — totallygroovygirlfriday @ 1:15 pm

Totallygroovygirl has been meaning to share a little personal story for a while…..

As groovygirl has mentioned, she has been taking this year to move around the way she invests in physical gold and silver to eliminate almost all 3rd parties between her and her investments in preparation for 2015-2017.

Although she still has some physical metal in third party hands, it is now a small percentage of her overall investments. She understands the risks of that small percentage.

One such move happened recently. She moved some physical metal from one private vault to another. And also used the process to actually view and count the physical metal. One reason she did this: the storage fees for the private vault were paid to a third party, not directly to the private vault. She had a count, serial number, etc, all the paperwork in her name from the private vault company, but still she felt uncomfortable paying a third party. Sometimes that means your physical metal is in a large holding vault in the name of the third party, not you.

And what happened when she had an opportunity to view her 2008 purchase? She was sent 2011 metal. That means, indeed it is a third party holding vault and there is indeed an extra link between her and her investment. Now she pays direct.

Private vaults are an option for a percentage of your investments. Just make sure it is in your name and you are paying the private vault directly. Regardless of any piece of paper you have with serial numbers, counts on it.

When there is still physical metal available for delivery, this situation is not an issue. But we are fast approaching the time when this will be an issue. And how much physical metal is really in the system (vs. paper metal) will come to light, when it is too late to make these changes to your private vault holdings. So, do it now.

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