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My Stack 7 Years Ago Update Coming Soon !
I have a lot of friends who have come to me in the last 18 months wanting to get into holding some metal or gems and looking for advice, it seems that the fiat bubble has burst people are waking up to the corruption in the fiat money space so I ask them why they want to do this and the reason is the same with the current pandemic they are fearful of a collapse of fiat currency and or hyper inflation. What I explain is that there are many types of stacking and that the different types offer different types of risks and what I tend to find is that people take the information on board but always choose a easy path and always pick the ETF or Allocated gold and silver programs. I will always try to steer people to gold and silver as the risks are easy to manage and have no third party risk as I explain to them the reason they are looking to begin stacking is fear of everything crashing down yet they are so willing to put even there safety net in the hands of other people.
They looked shocked as I explain that the danger is if a fiat currency crash or hyper inflation happen there are real risks you may not be able to get the access you need to your metals if these types of events happen, the only problem they don't like with holding metals is the risk of it being stolen what do you say to these people?.
I always aid the ones who will hold metals with there safety and security required for what they want to stack
Counter party risk is a significant concern.
Most ETFs are exposed to the ability for another party to deliver on demand, such ETFs operate on a literal promissory note to deliver a specified amount of Precious metals, unfortunately the system is based on a fractional reserve system that would default in the event of a huge demand well exceeding physical supply.
If you wish to keep your Precious metals in a Bank's safety deposit box you must read the fine print to what the Bank's terms of services are. Many only only rent out the box but not guarantee the contents you place in it, and may restrict your access by Governmental decree.
Therefore, you have to be also familiar with what your governmental policy and plan is should there be an economic crisis that can prompt an authoritarian seizure of your financial assets and initiate a bail-in protocol.
In Canada, the Minister of Finance made into law in 2016 a 'Bail in' policy that will freeze cash, investment accounts and other bank held assets for the sake of bank solvency and economic stability.
It can be days, weeks or months before you have ATM access to your devalued cash and in limited quantities.
They may issue bank shares following confiscation of my funds like they did in Greece and Crete.
So, do your homework.
I was gonna reply but this reply ⬆️ is better then anything I was gonna type. Great points. &
@kerrislravenhill is spot on
love that reply :) @kerrislravenhill
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