Monday, November 18, 2013

Don't Keep Your Gold in the Bank

Money in banks is not safe. I would not keep any precious metals in a bank, first of all. Keep your precious metals in a non-bank depository. There are a number of vaulting companies around the world. We at GoldMoney use four different vaulting companies. VIA MAT, which is a Swiss company. Brink’s, which is a US company. We use Brink’s in Canada. We use Malca-Amit in Asia, and we also use G4S, which is a British company, we use their vaults in Asia as well.

None of these companies are in the business of lending, like banks. They’re all in the business of storing. The aim of banks is to keep their vaults empty because they’re in the business of lending, they’re not really in the business of storing. They make more business by lending gold than they do storing gold. So don’t keep your gold in a bank.

And as for currencies, just like I was saying before, in the short term to a certain extent, we’re reliant upon the banking system and having to use some national currencies to pay bills. But I would keep that to a minimum because at any moment in time, your bank which you think might be safe, may in fact not be safe.

- Source, Sprott Money: