Bullion storage in different geographic locations (Questions re: national governments)

Dear Community,
I would like to know if the following topic has ever been discussed, hoping for some orientation.
Goldmoney offers bullion storage in a variety of locations, e.g. in Switzerland, Singapore, USA, Canada, etc. I myself would prefer Switzerland for its historical role of relatively (sic!) secure political/financial situation ,whereas I would have certain doubts about e.g. Singapore guessing the political system is a soft (?) dictatorship.
Any comments, suggestions, recommendations re: a location where storage may be safer than in some others?
Thanks a lot in advance, Colima 13


  • GoldNRollGoldNRoll Posts: 234 Bronze ✭✭✭
    The big question is, does it matter the vault we choose? Since GM is incorporated in Canada, in case Canada nationalizes gold, what happens with the gold held in custody by GM in other countries? Would the vault operators obey the Canadian law or that of the country where the vault is located? Could this lead to international conflict?
  • TheSwedeTheSwede Posts: 17 Tin ✭
    Your gold can't be nationalised.
    A Goldmoney Holding operates like other financial services accounts, with the convenience of online trading and management; however, once a customer owns settled metal, they are not exposed to the counterparty risk that can arise from bank or broker insolvency, or from the management of a securitized asset.
    You are the absolute owner of your gold, silver, platinum, and palladium.

    When you purchase precious metals through your Goldmoney Holding, you hold and own the physical metal in your name. From a risk perspective, this is the next best thing to owning gold in your hand, but with the benefit of online access, trading, and the security of fortified vaulting. Goldmoney is not a "paper metal" product, which means that your metal ownership is not dependent upon the ability of, for example, an exchange traded fund (ETF), contract for difference (CFD), or commodity future to obtain and redeem metal for you when you want to sell it.

    Nearly all "paper metal" programs work on a fractional reserve basis, which means that if the majority of the program's customers wanted to redeem their metal for cash at once, the program operator would not be able to meet its obligations. In other words, "paper metal" products merely represent a promise to pay metal or cash equivalent. These products do not provide direct ownership of metal, and therefore expose you to counterparty risk as you are dependent upon the program issuer's ability to meet its obligations.

    Contrary to the fractional reserve nature of "paper metal" programs, the quantity of allocated customer metal in a Goldmoney Holding is always equal to the quantity of metal stored in the vaults. This one-to-one ratio is always maintained and forms a critical part of Goldmoney's governance model. Your precious metals are not recorded on Goldmoney’s balance sheet, which means that Goldmoney does not have any direct claim on the metals. We simply safeguard them on your behalf.
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