Is there a real advantage to spreading deposits over multiple vaults?

My concern is that in a redemption scenario having storage in multiple vaults would impede delivery time. Since the vaults are insured anyway, does it make more sense to just choose 1 vault closest to where someone resides?

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Answers

  • GoldmattersGoldmatters Posts: 3,993 Admin
    @zulu1520 As I understand it the vaults are insured. In that scenario wouldn't a Bitgold customer be remibursed?
  • zulu1520zulu1520 Posts: 294 Bronze ✭✭✭
    Nothing is full proof. Insurance company could become insolvent or not honor the policy. Remember AIG needed a bailout in 2009 and it is one of the strongest insurance companies in the world. Investor should be prudent and do everything in their power as well to protect there investment.
  • GoldmattersGoldmatters Posts: 3,993 Admin
  • UvasUvas Posts: 678 Silver ✭✭✭✭
    edited April 2016
    zulu1520 said:

    Nothing is full proof. Insurance company could become insolvent or not honor the policy. Remember AIG needed a bailout in 2009 and it is one of the strongest insurance companies in the world. Investor should be prudent and do everything in their power as well to protect there investment.

    AIG never defaulted on any of its insurance commitments as far as I know. The government stepped in when it made some horrible investment decisions. AIG's financial investment division got hammered. But its smaller insurance division was never in danger, and the funds for insurance policies are protected from that sort of thing by many laws.
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    @ArtMatters I am not worry about confiscation but I am worry if internet not functioning or blackout everywhere where you can't access to the virtual world and no one to be blame or take the responsibility of such phenomena.B)
  • MurphyMurphy Posts: 98 Bronze ✭✭✭
    @uvas as far as I know the terrible investment decisions that AIG made was insurance related. They took out a policy for any and everyone who wanted some downside protection for betting on sub prime or even prime mortgages.
  • GoldmattersGoldmatters Posts: 3,993 Admin
    @rohanibuang61 good point. At least if that happens, our ownership hasn't changed. I trust Bitgold would protect us. They seem to take the responsibility very seriously
  • GoldmattersGoldmatters Posts: 3,993 Admin
    @79Au197 Great points. That makes a lot of sense.
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