There are very few investments one can wholly own outright and in hand without relying on the performance of counter-parties. Nearly all equities, bonds, fiat currencies, and even most forms of real estate require the performance of other peoples (outside of the investor or owner) for performance and enduring value.
Conversely physical gold, rhodium, palladium, platinum, or silver bullion products do not rely on someone fulfilling a duty to maintain their values. Precious metal coins, rounds, wafers, and bars always have an intrinsic value as they are inherently valuable given the special respective properties each precious metal fundamentally possesses. Other than the counter-party risk of outright theft, physical bullion is protected from bankruptcy and by nature able to retain value amongst future investors.
Although there are many competing versions of more complex precious metal investments (derivative ETFs or mining shares), all bullion derivative investments are dependent upon functioning stock and financial markets for their liquidity. Unlike equities, bullion can be traded virtually anytime and anywhere in the world. As bullion buyers exist in virtually all nation states and cultures.
Bullion has been relied on by mankind, dating as far back as 5,000 years ago, for use in trade and as a store of value. It remains a bonafide safe haven investment especially now given the world’s dependency on a complex digital infrastructure, fiat currencies, debt, and increasingly leveraged valuations dependent on counter-party performances. Central banks for example, buy and hoard about 1/5th of all the gold mankind has ever mined in order to better ensure their nation state’s balance sheet solvency and official monetary reserve positions.
The majority of our customers at Kitco Metals elect to buy their bullion and take safe fully insured physical delivery in nondescript parcels either to their doors or to professional third party non-bank segregated bullion storage accounts. Precious metal buyers also have the option of buying bullion for their Individual Retirement Accounts (IRAs) or Retirement Savings Plans (RSPs).
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