The “Key Box Storage” solution is a new storage option offered by Global Gold whereby you receive your own personal storage box to hold your bullion bars and coins – and now numismatics – outside of the banking system, fully insured, in a triple-A rated facility in Switzerland. Since only you hold the keys, an option like KBS fits the needs of those looking for the ultimate protection of their metal holdings.
Global Gold, our physically allocated precious metals company under the BFI Capital Group, has spent several years offering investors one of the safest and most advantageous international metals storage solutions available out there. It was created, amongst other numerous reasons, to provide metals storage outside of the banking system, offering only bullion bars and coins, and in a jurisdiction we feel is still the best place for physical storage, Switzerland.
One of the main reasons, if not the main reason, to hold gold and silver is as a hedge against extreme negative events. Risk continues to grow for an international monetary system collapse as a result of exorbitant global debt. Monetary discipline seems to be a foreign concept in today’s world. Now worries of government confiscation in places like the U.S. have again been swirling in the air. Writer and political activist, L. Neil Smith, said it best when he noted that “we are expected to believe that anyone who objects to the Department of Homeland Security or the USA Patriot Act is a terrorist, and that the only way to preserve our freedom is to hand it over to the government for safekeeping.”
The ideas of keeping your precious metals buried in your yard or under the mattress no longer cuts it for those really worried about protecting their assets against creditors or a cash-strapped government. And, while the metals markets haven’t reacted in the same manner as in the past when it comes to geo-political tensions and the markets, there are many signs pointing to possible trouble…maybe not today or tomorrow, but trouble at some point nonetheless.
Holding some of your metals outside of your home country sounds naturally prudent, but holding those metals in a box that you have exclusive access to is fortifying your wealth protection plans.
Advantages of Key Box Storage outside of your home country
A solution like KBS offers various unique advantages, particularly for the diligent precious metals investor. You purchase the box directly from an international precious metals storage provider and are the sole owner of your Box. Only the owner of a box possesses the two keys for that particular box and has access to its contents; neither the storage provider nor the storage facility itself has access.
One of the main reasons investors look offshore for storing their precious metals is asset protection. Not only does the geographic distance offer a nice buffer against creditors and other counter-party risk, but holding those metals in a jurisdiction deemed safer than your own, as well as your holding the only keys that access those metals, forms the foundation of a sound, protective solution.
While there doesn’t seem to be much privacy left in the world, the privacy that is left starts directly with you. Holding metals in your home or in a safe deposit box at your bank, while certainly practical and good for their own reasons, does have a risk of theft when transporting or purely of others knowing about your holdings. Your metal outside of your home country under Key Box Storage ensures that it is for your eyes only.
We are all aware that investing offshore now often time comes with additional reporting duties, reporting that many would feel goes against that very “privacy” just mentioned. But KBS, since it is very much like holding your property in a private vault, may have an advantage in how any reporting may or may not have to be done. If going with an option like offshore Key Box Storage, it will be worth checking with your local tax expert to see exactly if or how this type of storage would need to be handled. A solution like KBS might very well be able to provide for the maximum privacy and protection many seek for a part of their metals holdings.
Global Gold’s KBS solution
Now, Global Gold has expanded their Swiss storage services to include the new and unique Key Box Storage solution. Unlike their Standard Allocated Storage (SAS) and Segregated Box Storage (SBS) options, KBS ensures an added new level in more secure and private access for the precious metals investor by assigning a safe box that is only accessible to and by the client. Only you have the keys to open your own, private Key Box.
And, contrary to Global Gold’s existing storage options, KBS allows you to store numismatic and semi-numismatic coins or rare bars.
Global Gold’s Key Box Storage allows you to store up to 30kg of precious metals in a key-locked metallic box that is kept in the same high security vault Global Gold uses for all of their precious metals holdings. Additionally, you can declare the desired insurance value of the box’s contents on an annual basis.
When bringing your metals into KBS, you either ship or deliver them yourself, with the possibility of monitoring the entire storage process personally. Delivery and storage without personal presence of the client or his appointed representative is only possible with the initial transaction of bringing the metals in.
Once the metals have been delivered, the Key Box cannot be taken out of Global Gold’s storage facilities nor can metals be removed without your personal presence or that of your designated representative. A final delivery of the entire Key Box and its contents can be organized without personal presence, but certain conditions must be met.
The Box belongs to you and only two identical keys exist for each Key Box. These keys are handed over to you in person here in Switzerland, or can be shipped to you or your representative according to your instructions. KBS is currently only offered in Switzerland.
The advantage of your own Key Box doesn’t equate to enormous additions in cost. Global Gold designed KBS so that outside of the one-time cost of the box itself, the client pays the same storage fees as they would under the Segregated Box Storage option. Thus, outside of the box, KBS doesn’t cost more than their segregated box storage option.
Unlike safe deposit boxes in banks, the metals stored in the boxes are fully insured. But, like safe deposit boxes, you can store your numismatic and semi-numismatic collections in your own Key Box opening up new opportunities for those looking to safe-guard their metals collection.
Qualifying for KBS
The minimum value of stored metals required to qualify for KBS is CHF 250,000, or the equivalent in other currencies. As mentioned earlier, storage fees will be the same as for the Standard Box Storage; you only have to purchase the box and the lock additionally.
You don’t have to be a new client to Global Gold in order to access KBS; our existing clients can take advantage as well. Global Gold has always made it easy to change from one storage option to another or from one storage location to another. You can upgrade, for example, from the Standard Allocated Storage solution to the Standard Box or Key Box options. Minimum requirements still have to be kept in mind. Key Box Storage is currently available only in Switzerland.
It took years for us to help develop what we felt was the ideal precious metals solution with storage in Switzerland, but it doesn’t stop there. The KBS solution represents yet another step in answering the call of those concerned investors and precious metals believers that want to protect their assets in the best way possible.
Send a return email, or email me directly at scott.schamber@, if you have any questions or want to take advantage of the Key Box Storage option today. bficonsulting.com
Your “Swiss Mountain Guide”