The importance of fully audited, allocated gold: the case of ABN AMRO
“The ABN AMRO bank has abruptly closed all weight accounts for platinum, gold and silver bullion, leaving 2000 stunned precious metals investors with little more than thin air, where their physical gold bullion, silver bullion and platinum investment once was. The regrettable case of the Dutch bank reaffirms the absolute necessity of fully audited, allocated gold and silver to ensure verified bullion in physical gold or silver investment.”
USAGOLD note 1: The ABN Amro situation illustrates with a high degree of clarity why it is important to own metal in hand rather than in some paperized version of gold ownership subject to the whim of the institution managing the account. In this particular case, we cannot help but note that ABN Amro’s closure of paper gold fund comes at a time when bullion is in short supply and owners of the fund are likely to have a stronger than average desire to take delivery of the position. Investors of the fund were forced to sell their positions at a time when it is very difficult to acquire a replacement in the open market. A bird in hand, as the old saying goes, is worth two in the bush.
USAGOLD note 2: That said, USAGOLD does offer fully allocated precious metals accounts where you can park gold and silver coins and bullion and take delivery whenever you wish – an important difference when compared to unallocated, non-delivery ETF accounts to which you can subscribe through your favorite stockbroker. ETFs are a price bet. Physical gold and silver to which you have full access are a true safe haven and long-term store of value.
Repost from 4-17-2020