Salient Storage Lesson

Posted | 16/07/2015 / Views | 2808
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In the lead up to the Greek crisis, many Greeks withdrew cash from banks and bought gold and silver prior to the inevitable capital controls being enforced and the possibility of a reversion to the Drachma and the just as inevitable hyperinflation.  The problem is that many put that gold and silver in safe deposit boxes…. in the banks!  As they have learned now it is the same front doors that are closed and they cannot get access to that gold and silver.  Greece’s Deputy Finance Minister said they have imposed the restriction to prevent people withdrawing cash from safe deposit boxes amid the capital control period.

Whilst your cash in a bank sees you as an unsecured creditor (as we discussed here) for what essentially becomes the banks’ money, safe deposit boxes supposedly sit outside that right.  What these restrictions imposed in Greece have many speculating is they will ‘change the rules’ and be able to seize safe deposit box contents as well.

Whilst many think ‘it can’t happen here’, there are more and more respected commentators warning Greece is just a prelude of what is to come.  Just recently the head of the UK’s largest fund manager Fidelity said people should be cashing up but importantly he said that includes physical gold and silver and cash held outside a bank.

This is why we recommend Reserve Vault for secure storage.  They are an ultra high security vault and independent of any financial institution or government body.  They also offer All Risks insurance underwritten by Lloyds of London and a very cost effective independent audit service (ticking both boxes for Self Managed Super Funds).