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Precious Metals

Selecting Storage For Your Precious Metals

The relationship you have with your metals is critical. This sounds simple, however, it can become very complicated. First and foremost, do you have a direct relationship with the facility where your metal is being held? 

It is very common for a gold dealer to set up a subsidiary or affiliated company to offer storage services. In some cases, the subsidiary or affiliated company enters into a master agreement with the actual storage facility whereby the facility only takes direction from the subsidiary or affiliated company. You can also check out here to get more information about swiss gold storage.

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The subsidiary or affiliated company is simply a middleman. In this instance, you have become a part of an affiliated program rather than having a direct storage account. There are additional risks with such programs because more hands are involved between you and your metals.  

With allocated storage, your metal can be commingled with the metal of other clients or leveraged with multiple other clients into one bar. Fully segregated storage, on the other hand, requires that your holdings be kept physically separate from other client holdings. 

It’s important to not rely on marketing or advertising claims but rather to read the actual storage agreement and any disclosures provided to avoid miscommunications or outright client frustration. 

Many storage facilities or programs have discriminatory fee schedules between certain types of segregated or allocated accounts.