12
June
Should I Store Securely or take Possession?
This depends on your motivation for buying precious metals. If you are simply investing in precious metals in order to diversify and in order to make a return then it is more cost effective to buy bullion and store it with a secure third party or own government certificates. If however your motivation is to own bullion in order to protect against macroeconomic and systemic risk and for financial insurance purposes rather than solely diversification and capital appreciation then you may elect to own and take delivery of your bullion.
If electing to store bullion with a third party , credit ratings will again become very important considerations in the coming years as will length of time in business. The Perth Mint has been in existence since 1899 and has a AAA rating which is a very important consideration in these times.
Counter-party risk has never been more pronounced and now more than ever one must be conscious of this and thus it makes sense to do both today. In the same way that it is important that investors are properly diversified in the assets that they own, so it is important to be diversified in the precious metals component of a portfolio.
