27 Comments
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Hi Colin — Except where the mine is state-owned, central banks buy from the refiners, the bullion markets or from each other. Hedging by mines is so that the mine manager has certainty of cash flow. At these price levels there is little need.

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Les—

BV should be secure, but I really cannot comment further. An alternative is Goldmoney with which I am familiar being Head of research there.. Furthermore, Goldmoney offers a choice of fully insured vaults around the world. See https://www.goldmoney.com/why-goldmoney

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Hi Mitch

I've passed your comment to Eric.

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Hi Michael - this is a good idea for a topic which I will address.

Do we need bullion banks? Primarily it's a matter of demand for unallocated accounts and the willingness of a bank to supply the facility. But being a form of bank credit there are systemic dangers .

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Mar 8Liked by MacleodFinance

You almost feel sorry for the bullion banks but when you picture them all out on the lash celebrating their move to slam the price down and make a killing, pity goes right out the window. KARMA! and I bet the shoe on the other foot is hurting this week. Squeaky bum time for some traders no doubt🤔

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Mar 13Liked by MacleodFinance

Simon Gedye - 13th March

' Elliot Wave Technicians ' drooling over this recent set-up that's come along ..?? . You bet your life they are & then some . I had a past very short association with Adrian Douglas and am really sorry that he's no longer around to witness any of this -, along with all of the other ' E.W. ' proponents .

As regards Andrew Bailey and whether he'll - " Take his Revolver and walk to the top of the Garden "

Frankly I don't think he's even got the gumption to realise what a shit-storm he's played his part in creating , so I'll be highly surprised if he does in fact ' Jump Ship ' . He never has had the nous or intelligence of the prior occupier of his seat .......Mervyn - Pack in the tennis and get back here a.s.a.p .

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The companies are international in character, which is what you mean (a co is always incorporated in a specific jurisdiction) and conform to best practice over security, insurance, etc. You can check up on them online.

It does potentially matter which country the physical is in because property law is legislated locally.

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Patrick

This is a good point particularly for US residents scared of confiscation. A US company would probably have to comply with an executive order with respect to gold vaulted anywhere in its vaults. So don't use a US company in your vault selection if you are a US cirtizen and resident.

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Hi Les

If by BV you mean Bullion Vault, it is not a bank. Generally, I wouldn't hold gold or silver in a regulated bank. A custodial arrangement such as Goldmoney or Bullion Vault is outside the banking system which is better.

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I think Bailey and co either don't know what's ahead, or are very scared. Jumping ship will just frightened the horses.

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Jonathan

I know that Sharps Pixley stores gold ands silver for various SIPP providers. Worth asking them.

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All markets have a degree of manipulation Jonathan!

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Thanks Peter. This is obviously a topic to be addressed. For a layman's point of view, I can't immediately think of one. Google it?

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Hi Danf

I wouldn't own ETFs in the first place, because you don't own the gold. That said, if we have a credit crisis, that would probably be the point where you likely lose the connection between ETF shares and the underlying assets.

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Hi Mike Deacon

My reticence was only because I'm 99% sure there's no problem with Switzerland. The 1% doubt is how they have been "pragmatic" in the past about passing info to the US authorities on US national's bank accounts. Admittedly, not quite as sinful as compromising property rights. FWIW, I'm happy to store metal in Switzerland, which for me is a day's drive.

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Good day folks

I am uncertain as to the best means of directing a question to you Alasdair so I hope this gets through OK...

Yesterday I watched with great interest your latest discussion with Dunagan Kaiser. One viewer question caught my attention in particular. Paraphrasing..

"Is Switzerland a safe location for vault storage?" I noted a certain reticence in your answer.

Would you advise that any metal stored in Switzerland should be moved to Singapore. I'd be really grateful for any comment/advice that you may have on this point.

Thanks. Mike

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