Requirements for Effective Gold Investment Clear Title Ownership Exchange Traded Funds (ETFs) Mutual Funds Futures/ Options Bank Storage Personal Possession
Direct and unambiguous ownership of specific gold bullion bars or coins
Assets are segregated from the balance sheet and creditor obligations of all intermediaries or service providers.
Does not offer unallocated or pooled assets. No pledging, no leasing, no market-making – contractually guaranteed N/A
No reliance on functioning capital markets
No reliance on financial counterparties for payoff
Diversification across uncorrelated sovereign jurisdictions
Efficient trade execution, clearing and settlement
Ability to take physical possession at any time N/A
Strong investor protections under all contingencies
Highly liquid asset – liquidity of asset is not dependent upon functioning financial system
Multiple exit strategies
Third-party oversight, proper compliance and control environment
Management with experience operating in adverse market conditions N/A
Flexibility to adapt as regulatory, economic and political conditions evolve
Not dependent on banking custodians, brokerage firms, functioning stock markets and clearing houses
Physical in kind transfer of existing precious metals into the program N/A
No crisis-based cash settlement provision clauses
Insurance coverage
Semi-Annual Audit Report of the entire client inventory, conducted by an internationally recognized auditing firm N/A
Ability to personally inspect your specific gold holdings
Transparency – independent verification of all positions, transactions and valuations N/A