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Is Your Silver And Gold Safe With A Custodian?

The short answer is “no.”  Just ask those who invested in Morgan Stanley’s silver “investment” product 15 years ago or in UBS’s precious metals custodial services. Time and time again we hear horror stories – some anecdotal and some that come from bona fide lawsuits in which investors who thought they had silver with a “reputable” custodian ended up with no physical silver and, instead, a fiat currency repayment.

Of course, for me the most notable example is when the German Government, in 2012 if memory serves me correctly, requested the repatriation of half of its 1500 tonnes of gold bars stored with the Fed (Germany moved it to the U.S. right after WW2 out of fear that Russia might invade and take its gold – like Germany did to the countries it conquered during WW2). The Fed balked. Eventually the two countries agreed that Germany could have back 300 tonnes that would be shipped over seven years. Much of the gold that was shipped back to Germany was not the original bars Germany sent over here.

The point here is that possession is 100% of the “law” when it comes to silver and gold ownership. It would be unwise to trust ANY precious metals custodian. This includes Brinks or any of the precious metals vault custodians in Delaware plus the few others sprinkled about the country. Especially do not trust IRA custodians. I’ve heard several horror stories about trying to get physical gold and silver out of IRAs from investors who had to settle for cash. In fact, I just heard from a friend yesterday who is in a dog fight with his IRA custodian to get possession of some silver bars. Bottom line: If you don’t have possession of your metal, you may not really own it.

David Morgan invited me to be a guest for his inaugural “Silver Psyop” series to discuss this topic at length:


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