Allocated bullion.

Discussion in 'Australia & New Zealand (Public)' started by swoydaz, Jul 24, 2019.

  1. swoydaz

    swoydaz Well-Known Member Silver Stacker

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    Valid, and perhaps timely question.
    But happy to move to another section if admin needs to ☮️

    Allocated bullion

    Scenario.

    You have $x invested in allocated bullion.

    That company goes tummy up.

    What do you have now, should that happen?

    Cheers. Swoydaz
     
  2. Soprano16

    Soprano16 Well-Known Member Silver Stacker

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  3. SilverDJ

    SilverDJ Well-Known Member

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    We have a huge thread on this right now with Perth Bullion going tits-up.
    With fully allocated metal you are usually legally protected, provided the company didn't do anything nefarious. Although it would likely take some time to sort it all out and get your actual metal.
    Safest option in Australia is the Perth Month depository, it's government guaranteed, even the unallocated program.
     
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  4. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    the big if is..... what if the gold isn’t there.... be it, it was never bought or was sold to cover other immediate needs to trade out.
     
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  5. President Trump

    President Trump Well-Known Member Silver Stacker

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    Yes that is the big if. Related to this; if details in the documentation you sign turn the arrangement into something less clear than a true allocated gold holding. Many parts of these documents are only tested when there is a liquidation. Prior to that they are drafted by lawyers who are not acting for you. They are paid to look after the interest of the company and the clauses they draft may help the company without hurting the customer... to a point.

    What about if there is a liquidation? Quote from a lawyer "once the company is in liquidation its all over anyway"... not fair, but of course that is right, they are acting for a client who no longer exists.
     
  6. Stoic Phoenix

    Stoic Phoenix Well-Known Member Silver Stacker

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    A headache.
     
  7. SilverDJ

    SilverDJ Well-Known Member

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    And it's not just about the legal agreement, the company has to actually follow through and remove the metal from their books. Only if they remove it from the company books does it then become your legal property come liquidation time. If the company has been playing loosey-goosey with the allocated metal then it'll be a fight to get it back as the other creditors will be fighting for it too.
     
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  8. SilverDJ

    SilverDJ Well-Known Member

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    Then you are pretty much screwed in terms of the normal process of getting your metal back. You'd likely have the start some form of legal proceedings, perhaps even directly suing the former directors for fraud or some such.
     
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  9. zedstrange

    zedstrange Member

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    You are the owner of that bullion, the Liquidator would be obligated to give it to you, or sell it and give you the money.
     
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  10. swoydaz

    swoydaz Well-Known Member Silver Stacker

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    Good point.
    Or whatever was left.
     

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