Alternatives to Physical Precious Metals

Some people feel that taking physical possession of precious metal (gold and silver) coins or bars is a hassle, as one would have to worry about its storage, so they prefer purchasing it and letting someone else deal with the storage issue. As we believe in people’s right of choice, we will provide details of alterative means other than physical.

Certificates
One of the most common means of not taking physical possession is allocated or unallocated gold and silver certificates issued by various mints and bullion banks. I believe certificates by the Perth Mint (Australia) are the best bet, as i’ve read bad things about banks – Scotia Bank/Mocatta (Canada’s largest bullion bank) where the “certificates are backed by the assets” of the bank and not necessarily physical metal, the run around they gave to a cancer-stricken 73 year old lady to convert her silver certificates to physical, and the missing metal found in their vaults by Lenny Organ • Morgan Stanley being fined for not physically storing silver for its 22 thousand clients when they were paying storage fees • Swiss Banks who refused to hand over allocated 1 ton of gold and 20 thousand oz of silver.

The Perth Mint Certificate Program (PMCP) certificates are government-guaranteed, insured by Lloyd’s of London, permitted in retirement programs (IRAs and SIPPs), no storage fees for unallocated accounts, low certificate fee (approx $US 50), no duties and taxes, low premiums over spot, option in gold, silver, platinum and palladium coins or bars, global network of dealers, and worldwide delivery and redemption. The certificates are available in the United States through my favourite economist’s/investor’s (Peter Schiff) company Euro Pacific Capital, in Canada through Kitco Precious Metals, in the UK and Ireland through GoldCore Ltd and in Switzerland through BFI Wealth Management AG.

Electronic Trading Funds [ETFs]
For those into the stock market or those investing through their retirement plans, ETFs are a common means of getting into precious metals without taking physical possession. If you decide to go into this, i would encourage you to get into ETFs which physically store precious metals and are independently audited like Sprott’s Physical Gold Trust [PHYS], Sprott’s Physical Gold Trust [PSLV], and Central Fund of Canada [CEF], though they trade at a premium to spot. I would avoid ETFs which simply track the price of precious metal like GLD and SLV and are settled in cash and not physical metal.

Useful Videos
DON’T BUY THE GOLD ETFs
Why you shouldn’t invest in a silver/gold ETF
How to Buy Gold Now
ETF vs. Physical Gold
GLD And SLV ETF Prospectuses Are Problematic

Electronic Metals
As digital money rules the world today, precious metals have also gone virtual with websites like GoldMoney.com (UK), BullionVault.com (UK), GoldCore’s Gold Saver (UK), CacheMetals.com (Canada), SilverSaver.com (US), e-Dinar.com (Dubai), and BullionMark.com’s My Vault (Australia). I can only recommend GoldMoney.com, as its chairman is gold bug James Turk and recommended by many people I follow including Max Keiser, Mike Maloney and David Morgan.

Useful Videos
GoldMoney at Baird & Co.
The GoldMoney Standard
Introduction to GoldMoney

Conclusion
In my view, paper or digital promises for physical metal is no different than how paper money used to be paper promises to physical metal. I encourage you to store it yourself in a safety deposit box, bury it on your property, or store it in a home safe (if small quantity), as i believe “if you don’t hold it, you don’t own it”, as any paper promise is you relying on a third party, which is a liability.

Useful Videos
Importance of buying physical gold
Physical silver versus paper silver

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