‘Talking Gold’ – a fortnightly update from Kinesis Director and precious metals expert, Andrew Maguire, providing a detailed round-up of the recent action in the gold and silver markets – a regular feature from the Kinesis Youtube show ‘Live from the Vault’.
In this week’s breakdown of all things gold and silver, Andrew Maguire discusses the markets with renowned precious metals blogger, Harvey Organ. The life-long precious metals enthusiast shares a personal account of his physical gold bullion going missing within Scotiabank’s Toronto vault.
Physical gold specialist, Harvey Organ, reports that an audit of his family’s gold bullion at Scotiabank’s Toronto vault, located none of their gold holdings.
According to Harvey Organ, the auditors were initially denied entrance to view their client’s gold bullion. The Canadian bank labelled the auditor’s duties a ‘security risk’, Harvey went on to explain.
Only after the family consulting legal counsel were the auditors finally granted access, Harvey continued. With an inspection of the Scotiabank bullion vaulting facility revealing no sign of the family’s gold bullion holdings.
Where was the physical gold bullion?
Despite Harvey’s family paying Scotiabank costly storage and insurance fees to hold their physical gold, Scotiabank stated the bullion was currently residing in Hong Kong, China.
The family’s legal representative gave Scotiabank a fortnight to return the physical gold bars to their rightful location. Harvey Organ recounts it was 6 weeks before the physical gold again rested in Scotia’s vaults.
Precious metal industry implications
According to Harvey Organ, reputable gold blogger and specialist, a major flagship bullion bank charged clients costly storage fees, while that physical gold served their interests halfway across the world.
Fortunately, traditional bullion banks are no longer the only option. Gold investors can now access allocated, independently audited precious metals, with instant access to their holdings. Kinesis is changing the gold industry to bypass archaic institutions, providing gold investors with security, value and access unseen in the precious metals space.
Andrew Maguire’s parting thoughts:
What this tells us, whether you’re an institution or a private investor, you have to be sure that the bullion you own is securely held in your name.