The Uncompromised Bullion Held in True Allocated Storage Checklist


It’s a black or white issue: Either you own uncompromised bullion bars for which you have title documentation that are stored in secure allocated storage, or you have an unallocated account that can be settled in cash at the issuer’s discretion. The fine print on your precious metals account or bank certificate should make it clear. Yet many investors with unallocated accounts are shocked when they attempt to take delivery of the gold.

First, purchase the bullion. Once payment is made, documentation transferring ownership to the purchaser must include the name of the refiner, the serial number, the weight and purity to three decimal places. While client identification for money laundering and anti-terrorism compliance must be kept by the seller, the seller should provide a written confidentiality agreement to maintain the privacy of the client.

Second, place your bullion in secure allocated storage. This means an LBMA-member vault, an allocated storage agreement (read the fine print), and a reputable storage facility. Storing your bullion at home is not always practical, and it’s certainly not wise for large holdings. Private insurance on bullion stored at home, if you can get it, will be far more expensive than allocated insured storage fees. Selling your bullion, once it has been removed from the LBMA chain of integrity will require the added expense and delays of having the bullion re-assayed.

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For more than a decade, Nick has focused on precious metals and the benefits available to investors who hold physical gold, silver and platinum bullion. As president and CEO of Bullion Management Group Inc. (BMG), a precious metals management company, he uses his understanding of the precious metals markets to develop strategies, products and services for clients looking to integrate bullion into their portfolios. In 2002, Nick launched BMG and BMG BullionFund, Canada’s only RRSP-eligible open-end mutual fund trust that purchases equal dollar amounts of gold, silver and platinum bullion. Subsequent products added include the BMG Gold BullionFund, the BMG BullionBars program and a third fund, BMG Gold Advantage Return BullionFund. Nick specifically designed all BMG products so they would not compromise any of the fundamental attributes of precious metals ownership: absolute liquidity, no counter party risk and no reliance on management skills. In 2011, BMG became an Associate Member of the London Bullion Market Association (LBMA) – the only other equally accredited company in Canada is the Royal Canadian Mint. In 2013 BMG became the first Canadian precious metals company to join the Social Investment Organization. Widely recognized as an international bullion expert, Nick has written numerous articles on bullion and current market trends that are published on various news and business websites and he speaks regularly with major media outlets across North America, Europe and Asia. His first book, $10,000 Gold: Why Gold’s Inevitable Rise Is the Investor’s Safe Haven, will be published in 2013. Every investor who is seeking the safety of sound money will benefit from Nick’s insights into the portfolio-preserving power of gold.

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