Quote:
Originally Posted by Quotealex
But how can you be 100% sure they actually have that much gold stored? There was a bank in Canada that was selling gold certificate redeemable in physical gold and where charging a monthly storage fee but no one could actually redeem their gold. They had to settle for cash!
I want to see and hold the gold and silver I buy.  |
How do you know you have $1000 in your bank account? You can see it on your statement on paper or via online banking. You cant physically see the money or hold it unless you withdraw it but you mostly just assume its there based on trust.
So essentially its a matter of understanding who it is that you're dealing with and making an assessment of whether or not you want to trust them. You also consider what claims they make about guarantees.
http://www.goldmoney.com/en/guarantee.html