Tag Archives: GoldCore

GoldCore: Classic Christmas Film Lesson In Danger Of Exposing Wealth To Banking System

While visiting GoldSeek.com earlier tonight, the following article title jumped out at me:

“It’s A Wonderful Life Is A Wonderful Lesson To Hold Gold Outside of The Banking System”

Penned by the folks over at international bullion dealer GoldCore, the piece began with:

Frank Capra’s 1946 film It’s A Wonderful Life is one that many families will be settling down to watch this Christmas weekend. A story that is ultimately about a suicidal man is one of the most watched holiday films of all time…

There are some important lessons to be learnt from the film’s protagonist George Bailey. For us the main takeaway for cautious investors and savers is in reference to trusting banks and deposit companies with your hard earned cash.

It is a lesson on how exposing your wealth to various counterparties is exposing it to an incalculable level of risk. Furthermore it should be a lesson on the importance of having savings and learning how best to protect them…

(Editor’s note: Bold added for emphasis)

An interesting piece, which you can read here on GoldSeek.com.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

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Related Reading: GoldCore’s O’Byrne Defends Safe Deposit Boxes Against Banks, Insolvent Governments

Last month, rumors circulated that multinational banking and financial services company HSBC was closing its gold vaults. There was no shortage of speculation as to why the London-based bank would do this.

Mark O’Byrne , executive and research director at Dublin-based international bullion dealer GoldCore, eventually shed light on the matter (hat tip Sentinel Vaults).

Basically, HSBC is not closing its gold vaults. Rather, its safe deposit boxes in bank vaults.

Regular readers of Offshore Safe Deposit Boxes already knew this. On March 6, I blogged about financial institutions around the world getting out of the safe deposit box business. HSBC being one of them.

While an insightful read about the whole fiasco (“Salutary lesson to all- media and blogosphere- to be more rigorous”), it’s what O’Byrne had to say about safe deposit boxes that I found particularly interesting. O’Byrne wrote on the GoldCore website on March 24:

Availability of safety deposit boxes is in decline in Britain and much of the world. Costs of security, insurance and opportunity to use such facilities in a more profitable manner are driving the closures. Banks in Ireland including the Bank of Ireland claim that the safety deposit boxes are “causing an unacceptable health, safety and security risk in some branches.”

While the move is understandable from a purely profit motive point of view, it must be remembered that this is a greatly needed service by many people including entrepreneurs and professionals who need to safe keep important legal documents that they are not comfortable keeping in a home or office. It is also a greatly needed service for the elderly and other people who have valuable jewelry and heirlooms that they are uncomfortable keeping in the house.

Students too, as I noted back in February.

O’Byrne continued:

It is another case of banks blindly pursuing profit ahead of the interests of their own clients.

Banks and insolvent governments desperate for cash likely also dislike safety deposit boxes as they are means for people to protect and grow wealth and protect themselves from inflation and indeed bail-in and deposit confiscation. A percentage of box holders so store cash and bullion.

In our brave new world of the ‘cashless society’, the financial independence and freedom that a safety deposit box confers upon the citizen is frowned upon.

As a consequence citizens are being deprived of the opportunity of having their savings, valuables and wealth stored outside of the increasingly precarious financial system and digital banking system…

(Editor’s note: Bold added for emphasis)

Which is where private, non-bank vaults come in, I might add.

You can read O’Byrne’s entire piece on the GoldCore website here.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

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