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Gold Depository | Gold Storage

Gold Depository

The simplistic definition of a depository is that it is a place where anything can be left for safekeeping. Hence it is understood that Gold Depository is the place where you can keep the gold safe.

The safekeeping of gold, because of its worldwide status as the traditional store of value, is of paramount importance internationally.

It is the pride of a nation that it holds huge amount of gold with it. Hence by the amount of gold it owns, one can measure the wealth, importance and influence of a nation.

Throughout the world many countries store gold in secure vaults located in various centers. With the US holding, in its three largest storage facilities, more than any other country.

It is important that you should be aware that this much of the gold held in the US vaults is not the property of US. Other countries left the gold in the US for security reasons.

Fort Knox

The world’s best known gold depository is Fort Knox in Kentucky and is known as The United States Bullion Depository. Situated very nearly below the World Trade Center in New York is the US Federal Reserve Banks´ vault rumored to be the size of two football pitches.

At the time of the 9/11 attack everybody afraid at first that the Federal vault was the target.

One of the rules and regulations of the International Monetary Fund (IMF) is as follows. Gold Depositories of the Fund shall be established in the US, UK, France and India.
Gold Depository
The gold of the Fund shall be held with the depositories designated by the members in whose territories they are located at places agreed with the Fund.

The growing trade in physical gold from hedge funds to private individuals has highlighted the importance of the role of Gold Depositories.

If, as many individual investors are now doing, you are considering trading in gold, it is impractical to collect and privately store the metal in bullion form.

Gold Coin

You can purchase gold coin in limited quantities and deliver. But secured storage at the buyers home can become a problem. Then insurance will be a good option. While selling to a buyer you have to add this expense also. When selling and passing on the metal to the buyer you have to keep in mind that these costs involved.

When dealing in physical gold transfers of ownership in any but exceptional circumstances take place by exchange of Depository Receipts.

In other words the physical metal stays in the same secure vault before and after the trade with proof of ownership being passed on by paper.

It is therefore of importance to deal only in physical gold stored in an Authorized depository where receipts can be relied upon as proof of ownership.

If in any doubt check it out.

Begin by going online to the depositories website and carry out your due diligence from that starting point.

This is a big business. As such it is closely regulated. So it is possible to encounter if any problem arise. But it never hurts to take the trouble to be on the safe side.

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