30 March 2011

And you thought you owned that Silver?

A new court case in the USA highlights the risks of leaving your holdings of physical precious metals such as Silver or Gold with a bank. That the belief that one owns 'hard' assets is naive to say the least is proven by the fact that often all that you really own is a claim on a bank. Should that institution get into trouble you are only the owner of a claim on that bank and have to joins the queue of creditors. In all likelihood you would at best receive a fraction of the worth of your holdings in the eventual settlement of the bankruptcy.