Buy allocated and segregated Gold
Throughout the ages Gold was owned as money and to protect assets in uncertain times. Today, owning gold outside the banking system means instant liquidity in times of problems in the financial system (most recently Iceland and Cyprus). In the Weimar Republic, or more recently Argentina or Zimbabwe paper money became worthless. People who had gold could buy what they needed. Investing in gold as a private individual has many advantages. The MAM service allows account holders to visit and inspect or withdraw their gold personally. On the instructions of the client, MAM will buy sell or transport gold on behalf of the account holder. If a client wants to sell part or all of his gold, MAM can normally do this the same day as we receive the instructions. The minimum account size is CHF 250,000.
How much shall I invest?
In 2002 MAM advised clients to invest up to 50% of their financial assets in physical gold at a time when the gold price was $300. Although gold has gone up substantially since then, we still consider that gold is cheap at current prices. What percentage of one’s personal wealth to put into gold is a personal choice. Some investors put the majority of their wealth into gold and some put 10-25%. In our view, investors should put a sufficient amount of their wealth into gold so that they have enough “insurance” if other investments should go wrong. By insurance, we mean a meaningful amount that would be sufficient to live off for an extended period of time. Whether this means 10-25% or 50-75% depends on the circumstances of the investor.
When shall I buy Gold?
Many investors believe that gold is now too expensive and that they should wait for a bigger correction. Investors should not buy gold as a short term investment but instead as a means of protecting their wealth and purchasing power. Therefore short term timing considerations are less relevant. At any time a correction is possible. But it is MAM’s firm view that the downside risk is very limited whilst the upside is likely to be many thousand dollars. With a very fragile financial system, it is more important to preserve your assets as soon as possible instead of trying to finesse the entry point of your gold investment. When you invest in physical gold you should not consider it as a tactical purchase, but as the safest way to protect your wealth for yourself and future generations.
Where shall I store Gold?
From a wealth preservation perspective, gold must be owned in physical form and stored outside the banking system in the name of the owner of the gold.
In the section “Wealth Preservation”, we explain in detail how gold should be owned and stored. To own unallocated gold in a bank, gold futures or gold ETFs involves owning paper gold without the backing of physical gold. MAM also has had clients who believed they owned allocated gold bars in a bank vault, only to discover that the gold bars actually never existed, but were simply a “promise” to deliver the gold. For these reasons, it is critical to own gold in physical form, in the name of the investor, and to store it in secure vaults outside the banking system.
London Bullion Market Association
MAM only buys Gold through LBMA (London Bullion Market Association) member banks or refiners.
The LBMA association is absolutely essential and not only important to assure the quality of the gold but also to ensure that the gold can be easily sold again within the LBMA chain. For the same reason, if investors take personal possession of their gold (which we discourage for safety reasons) it is much more difficult to quickly sell the gold since it is outside the LBMA chain.
Signing up with MAM, the best service in asset protection
The sign-up process only takes 10 minutes. It involves filling in an online application form and send us a few original documents and a notoarized copy of your passport by courier to our company address in Zurich. Account opening is quick since no legal entity is involved. The account can be in joint names of both partners. Children can also be joint account holders or have power of attorney. Our compliance department will review the application and the account can be active inside 72 hours.