Bullion Vaults: Are you conducting research on bullion vaults and best practices related to bullion vault storage solutions? If so there are a number of areas to consider including:
Custodian Relationships: Low quality bullion vaults will simply rent you space within their vault but try to stay away from a custodial role because it is more expensive, includes more liability, more reporting requirements to you as a client, and just more service in many ways. If you are paying for a vault to store your bullion, you may as well pay for a custodial service as the increase in cost is marginal and the benefits are great.
Delivery Flexibility: Make sure that whatever bullion vault you end up using that you can take delivery, of your bullion at any time and that your bullion is not “locked up” for only monthly or quarterly sale or delivery.
Allocated or Unallocated Storage: It is important to ask whether your bullion vault service provider is giving you full title to the bullion and specific bars of gold, silver, or platinum bullion or do you just have a certificate, or a right to a certain amount of bullion? It is more secure, and avoids many creditor and counterparty risks if the bullion is explicitly allocated to you directly, it gives you more control and security in your investment.
Reporting & Administration: Just like with any other investment your gold, silver or platinum bullion holdings should be reported on monthly. Some bullion vaults do not provide reporting; ensure that you ask upfront regarding this service.
Third Party Auditing: Third party audits of bullion should be performed regularly to assure owners that the vault has not sold, swapped or leased their bullion. This is expensive and a deeper more institutional quality of service that you will not find at many bullion vaults.
Geographical Location: The location of the bullion vault you are considering using is important, factors such as politics, war, stable local currency, and the ability for the host government to nationalize assets are all risks that are directly affected by whether you decide to store you gold in one or several countries. . Canada is one of the most popular places to store precious metals bullion. .
If you would like to explore how we operate our bullion vaults and learn more about the industry leading best practices we employ while doing so please reach out to us through the form below and we can speak today about possibly serving your family or institution: