Banking System Hedge

If central banks and billionaires are buying Gold to hedge against inflation, more people should do it too. Investors bracing for any and all macro eventualities recognise that holding physical gold and silver within such banks (or ETF “paper gold/silver” held at these institutions) invites far too much operational and counter-party risk.

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Physical gold and silver held in the banking system, even in segregated or specially allocated accounts, is vulnerable to inherent counter-party risk. In the event banks or their intermediary custodians or managers ever experience illiquidity or other structural failure, client gold and silver is compromised. In such circumstances, investors would find themselves standing in line as second priority holders rather than direct owners of their own precious metal assets. That is why farsighted and informed investors recognise that direct, secure and unencumbered ownership of gold and silver is so critical to safeguarding their financial future in an era of historical debt and currency distortion.

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At SMA, our investors enjoy direct and unencumbered ownership of their assets with significantly reduced counter-party risk. This is a critical component of our long-term risk management, client-focused philosophy. Such direct ownership sets us far above other precious metal service providers.