Gold and Silver: An Ounce in the Hand is Worth 77 Million Ounces “On Account”

The recent seizure of eGold’s gold bullion holdings by the U.S. Government may have some more far-reaching unintended consequences. I predict that it might trigger some panic selling of holdings at the various “virtual” precious metals institutions. And it might even spill over to the fairly new gold and silver ETFs.

This situation also illustrates a key point that I often emphasize with my consulting clients: There is no substitute for personally holding your precious metals in tangible form. Don’t trust any individual outside of your immediate family or any institution to hold your precious metals for you–not even in your bank safe deposit box. History has shown again and again that A.) people and institutions can’t be trusted and B.) Governments get grabby when they perceive a monetary crisis in the offing. It makes no sense to grant special trust and confidence to a third party. Store your precious metals at home. Yes, I realize that home storage comes with its own set of risks. But at least the responsibility will be yours alone. And yes, I realize that home invasion robberies are on the increase. So there is now a very small statistical chance that you will someday be held at gunpoint and forced to “hand over” your valuables. For this reason I recommend that you leave a fraction of your precious metals in your home vault. Put all of the rest in a well-hidden, well-sealed waterproof wall, floor, or underground cache.