Defaulting banks - where will it stop?

[David Guyatt]

www.bullionvault.com[/url] I can assure you I was extremely unsure about this site at first. But did a little research and gave it a go, I'd also recommend it to anyone. Of course as a british based company I have no idea what would happen if the British government tried to steal the gold the way the federal reserve did. I've been told that keeping it in a zurich vault would protect it but I have no idea if it's true. I'm waiting for a price correction before jumping back in. Have a look at the site and tell me what you think.

Frankly, I'd be cautious. Demand for physical metal outstrips mining/lifting annually by several multiples and has done so for many years (over a decade I think). Almost every ounce of metal goes to India and Middle Eastern Souks for the jewelry trade -- apart from that quantity that is required for the medical trade and defence etc.

My concern here is that they may own some physical metal but are possibly (probably even?) leveraging it many times over. That's why you don't take physical delivery under their system -- there's many more owners than metal. What you might consider doing is trying to buy some coins like Krugerrands or Brittiania's (free of VAT). The latter come in various sizes ike the ounce coin, half ounce, quarter and tenth. They all sell at a premium, but you can take physical delivery and stash them under your bed...