Physical Risk of

Goldand how to

reduce it

EXCLUSIVE

W W W. G O L D R AT E F O R TO D AY. O R G

1. Buying gold bars and coins exposes the investor to the risk of loss and theft

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. Costs are involved to limit this risk 2. The transport of gold needs to be

insured 3. Gold has to be kept in a personal

safe at home or, better 4. In the bank’s safety deposit box 5. Here, renting fees incur

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. A bank vault is probably the safest place for storing gold

2. However, investors should not believe that the bank will store the precious metal for generations

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. HSBC customers had to face this situation

2. The bank asked end of 2009 its small retail customers to remove their gold from the banks’ New York vault

3. This resulted in an armada of armored cars, bringing gold out of New York

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. Another advantage of a bank safety deposit box is that the gold is not immediately available

2. As it can be only accessed during bank hours

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. Another issue is the insurance limit 2. In Germany, for example, bank

safety deposit boxes are insured only until US$ 28,000

3. With the current gold price, this corresponds to 20 gold coins (each 1 ounce), or 567 gram

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. How secure are safety deposit boxes?

2. In the first quarter of 2010, thieves removed in a bank in Paris the contents of around 100 safety boxes

3. A couple of month later, in French Bank, nearly 200 safety boxes were cracked open and its contents stolen

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. Property insurance usually either has a limited cover for loss of physical gold, or does not cover it at all

2. In both places, additional coverage needs to be purchased

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

1. Besides safety boxes and personal safes at home, some people bury their gold on their property (midnight gardening)

2. Will this reduce the risk of physical gold?

3. In some ways yes, as it reduces the likelihood of theft

4. However, those people should make sure to dig out the gold when they move (or die)

PHYSICAL RISK OF GOLD

W W W. G O L D R AT E F O R TO D AY. O R G

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