Why Gold Vaulting May Trump Futures
Why own futures when you can own the real thing?
Sanveet Singh, CEO of Gold Bullion International, explains the benefit of owning physical gold.
"Would you buy your home directly, or would you buy your home through a trust that owns shares in your home? When you own a real asset, there's no counterparty risk between you and the real asset. You're not dependent on the decisions of a trust, or the liquidity of that security," says Singh.
GBI's clients can store precious metals in vaults in New York, Salt Lake City, London and Zurich. Movement between the vaults, and delivery is available, provided orders are large enough. With GBI, minimum for storage is $20,000; home delivery minimums are $5,000.
Furthering the case for bullion, Singh adds, "When you want to go to sell it, you don't need to prove that your gold is real, you can take it straight back to the market without people questioning, is that gold real, and you get a better price for it in the end."
With print money facing inflation risk, and more demand for a 'safe haven' asset than ever — vaulting may be a viable option.