Of the many benefits precious metals offer, personal ownership is often highlighted as one of the most attractive features of owning gold and silver. Purchasing tangible assets like precious metals for shipping or home delivery allows you to bypass the counterparty risks associated with other traditional types of asset classes.

Our clients who buy precious metals with their savings are often striving to diversify and hedge their risk exposure. Individuals who hold cash reserves are exposed to the inflation and currency devaluation risks of the US Dollar. Not only do precious metals act as a hedge against inflation and a falling dollar, but when you opt for precious metals shipping, you mitigate risk exposure to institutions holding your money. Taking ownership of physical gold, silver, platinum or palladium bars or coins shields you against possible liquidity and credit risk, financial cybercrime, and other third-party risks.

Electronically-managed assets offer many benefits, but they can also carry varying degrees of risk including:

• Market Risk: arises from movements in prices, interest rates, exchange rates and commodity prices

• Inflation Risk: purchasing power will be reduced if the value of your savings do not keep up with the rate of inflation

• Interest Rate Risk: the potential that a change in overall interest rates will reduce the value of a fixed-rate holding

• Currency Risk: the change in price of one currency in relation to another

• Credit Risk: a loss resulting from a borrower’s failure to repay a loan or meet contractual obligations  

• Geopolitical Risk: wars, terrorist acts, and tensions between states that affect the normal and peaceful course of international relations

• Political Risk: a holding’s returns could suffer as a result of political changes or change in government, legislative bodies, other foreign policymakers or military control.