Your gold isn’t always safe

in bank vaults

When it comes to Gold Bullion, where you store your investment really does matter. For some people, the primary choice for gold bullion storage is banks. However, financial events worldwide continue to prove that your gold isn’t always safe in bank vaults.

Security Issues Attributed to Bank Vaults

Recent financial events in different countries have demonstrated just how unstable the banking system is and how governments don’t always have the public’s best interests at heart when economic turmoil arises.

In the United States, for example, the government reportedly seized more than $32 billion worth of unclaimed property in banks including uncashed dividend checks and safe deposit boxes, supposedly in a safekeeping effort.

As reported by ABC News, the banks are required to turn that property over to the state for safekeeping, though, “The problem is that the states return less than a quarter of unclaimed property to the rightful owners.” To make matters worse, one particular client had discovered her loss when she tried to retrieve important paperwork she required for her husband who was dying, but frustratingly found that her documents had been put through a paper-shredder. Furthermore, it was revealed that not all of these properties were unclaimed, which resulted in a class action lawsuit against the state of California in 2008.

Bail-In Laws Spells Trouble for Bank Deposits

Let’s not forget the bail-in legislation that is currently in effect in various countries in Europe, America and North America and Australia, which practically gives banks free rein on how much to confiscate from their depositors in times of financial crisis. The European Union has declared that all deposit amounts above  €100,000 can be reasonably confiscated.

Meanwhile, when Greece’s economy collapsed in 2015, many depositors found that they had not only lost their jobs, homes, and livelihoods but also the ability to withdraw funds from their banks, as directed by the government. This has happened in Cyprus as well and there’s no telling how bad things will be should the same economic downturn happen in Australia.

A More Secure Alternative

Gold bullion storage outside of the banking system is your best bet, when it comes to keeping your bullion investments secure. You need to keep your gold in a place where you can maximise your control over these assets while minimising the access by other entities such as the banks and governments.

 

CNBC pointed out in an article, “Owning gold is one thing, storing it is another,” explaining that storing precious metals at home or in a bank vault is fraught with all kinds of problems, while safe deposit boxes are proven to work and are inexpensive.

 

Today there are private safe deposit box storage facilities who understand that your gold isn’t always safe in bank vaults. This is why you have many storage services on offer to secure your bullion, as well as for other assets you want to safeguard from potential government confiscation.

 

Independent facilities like Private Vaults Australia (PVA) are proud to offer secure storage completely separate to the banking system. To learn more about how your gold isn’t always safe in bank vaults, contact PVA or read the the PVA blog for more interesting news, tips and ideas to guide you.

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