Would You/Do you Store you Silver in a Bank Deposit Box ?
- Thread starter Liquid
- Start date
Silverlicious
Member
Liquid said:
That's a sensitive question to ask, especially given you live in QLD.. or am I just the paranoid
type :/
Ie. those that don't store at a bank must store at home.. sounds like reverse psychology..
Just kidding
The 3rd option and what I think is the better option is to store in a private vaulting system. Just think the biggest moves up in the metals is when there is extreme market volatility which will most likely see the banks closed for a bank holiday, would suck having your stash non-accessible when prices are spiking up.
Silverlicious
Member
Split between two private vaults if you can justify the key deposits.. banks? I'd only keep shares in them
Read 'PART IV--GOLD' of the 'BANKING ACT 1959' before you say Bank Deposit Boxes are safe from confiscation
http://www5.austlii.edu.au/au/legis/cth/consol_act/ba195972/
Also contact APRA Australian Prudential Regulation Authority and get them to assure you in writing that our banks do not have any legislation passed that would allow them to go into any prolonged 'bank holiday' periods. Wont happen because they are about to make the laws up as they go along.
I personally moved what I had from Bank Deposit box to Privately owned vaulting a couple years back, I think they were safe a year or two ago but not anymore, you may as well buy ETF's because when the SHTF that's probably all the Bank will let you walk away with.
http://www5.austlii.edu.au/au/legis/cth/consol_act/ba195972/
Also contact APRA Australian Prudential Regulation Authority and get them to assure you in writing that our banks do not have any legislation passed that would allow them to go into any prolonged 'bank holiday' periods. Wont happen because they are about to make the laws up as they go along.
I personally moved what I had from Bank Deposit box to Privately owned vaulting a couple years back, I think they were safe a year or two ago but not anymore, you may as well buy ETF's because when the SHTF that's probably all the Bank will let you walk away with.
Bullion Baron said:
The Banks have special circumstance legislation passed that allows them to access Deposit Boxes once the Governor General has enacted parts/all of PART-IV while that special circumstance legislation does not extend to private vaulting systems or Bank deposit boxes under the ownership and operation of private companies (Banks that have sold their boxes to private companies) they still require the normal warrant process to access. As in the ACT it's up to the individuals to surrender privately held Gold as per the ACT.
I just can't see new legislation being passed fast enough across the private sector, agree it will happen eventually but you would have time to get it out of a private vault, the Banks however move instantly into 'Bank Holiday' status in a crisis and access will be hauled while they evaluate the systemic impact all the meanwhile private vaults remain unaffected.
Bullion Baron said:
Looking for it now, it was originally passed in USA then was apparently added into one of our bills but not sure which one, is to do with the way Safety Deposit Boxes are treated, it's a 'Financial Instrument' that forms an 'Account' with the Bank not a private contract. If I can't find it I will contact APRA again to get it.
BB^It's really little to do with Australia and nothing to do with Australia being the first to confiscate, the next Major crisis is more likely to trigger the derivatives market collapse so hence why at the last G20 meeting the Bail-in laws that were already written by all G20 countries came into effect. Now to prevent a systemic collapse the Banks go instantly into 'Bank Holiday' period (Cyprus Style) and asses and 'Bail-in' on accounts. Then slowly re-open in stages to asses the effect, if it triggers another hault they go again, and so on (all the meanwhile Bank accounts are frozen/limited and safe deposit boxes are deemed to be an 'account') . In the event that the markets can't re-open it is 'theorized' that all G20 countries will enact the Gold confiscations Acts in unison so that the combined pool can be used to back SDR's which can be used to prop up the system.
All I'm saying is that in this scenario chances are if it's held in a Bank by a Bank you would be unlikely to get access to it worst case, if it's a private arrangement and your fast enough chances are you can get it in your hands before it's official. Granted you would be on a list and granted all dealer lists at that point would probably be accessed. However as per BANKING ACT 1959 - SECT 42 you would still have up to one month to surrender your Gold after which time you risk punishment of only 50 penalty units also BANKING ACT 1959 - SECT 44 lets you somewhat negotiate a rate. However your options are limited if it's just taken from you without a fight.
Just checked 'definitions' in Australian State Law for Safe Deposit Boxes and it's pretty much uniform to call it an 'Account' this ties in with the Bail-In legislation that allows access to 'Accounts' in special circumstances. If anyone has a link to the recent Bail-in legislation can you please post.
All I'm saying is that in this scenario chances are if it's held in a Bank by a Bank you would be unlikely to get access to it worst case, if it's a private arrangement and your fast enough chances are you can get it in your hands before it's official. Granted you would be on a list and granted all dealer lists at that point would probably be accessed. However as per BANKING ACT 1959 - SECT 42 you would still have up to one month to surrender your Gold after which time you risk punishment of only 50 penalty units also BANKING ACT 1959 - SECT 44 lets you somewhat negotiate a rate. However your options are limited if it's just taken from you without a fight.
Just checked 'definitions' in Australian State Law for Safe Deposit Boxes and it's pretty much uniform to call it an 'Account' this ties in with the Bail-In legislation that allows access to 'Accounts' in special circumstances. If anyone has a link to the recent Bail-in legislation can you please post.
Well then bury it...........
Where I live, I don't believe there is a private storage option. In the US, don't see need for any bank holidays, government stealing 10% of bank accounts, etc. I expect governments to continue doing what they are doing and that is stealing assets by excess spending/money printing. No need to take your wealth by force when they can dilute it at will.
History rhymes, but it rarely repeats.
History rhymes, but it rarely repeats.
SilverDJ
Well-Known Member
tozak said:
Do you really need to access your metal instantly if a bank gets closed for a bit? Why?
Are you instantly going to go out and have to buy groceries with that silver?
What about the private vault, what guarantee is there that they'll be open when SHTF? (with SHTF being the only real scenario in which you'd have to remotely worry about this stuff anyway)
I don't understand why anyone would think this is any sort of issue worth worrying about?
It would actually be far more useful to have cash in the SDB than metals.
Let me ask you a question, if you had a neighbor that you knew pretty well and thought he was a good fellow, would you trust him to keep your stack for you? Probably not. So if your not willing to trust your neighbor to hold your stack, why would you trust a bureaucracy/corporation who looks at you as nothing more than a number to hold onto it for you? In both cases you are likely to lose it when things go badly, however you neighbor will at least feel a little guilty about taking your retirement from you, the bank will just look at you with a blank face and say "sorry sir, those are the rules, we no longer have your stack, please step aside your holding up the line".
Mind you, I'm not saying that keeping it at home is a good idea either. Personally, I tie mine to weather balloons and keep a spreadsheet calculating how long they will stay in the stratosphere and when I should expect them to come back down.
Mind you, I'm not saying that keeping it at home is a good idea either. Personally, I tie mine to weather balloons and keep a spreadsheet calculating how long they will stay in the stratosphere and when I should expect them to come back down.
A big reason I stack silver is to have it in hand. A bank box defeats that purpose. Do I think that in a massive bank collapse they or the feds might raid bank boxes? Yep. What could you do if you showed up at the bank one day, open your box and it's empty? Who do you go to? How do you prove what was in it? Not for me.
TreasureHunter
Well-Known Member
Stay away from anyone else holding your PM's. Bury them somewhere in another city, if you want...
Niveka said:
Why would your bank know you have pms in a SDB? I rent a SDB and that is the end of the bank's involvement. In the US, only the renter of the SDB has the second key. A bank would have to drill your SDB to open it. There are only two know instances of SDBs being opened (BAC in San Francisco & the British police (London?)). Both entities paid dearly for what happened. How many SSer members have had their pms stolen from their homes?
Stick with local banks where you know the employees and where they live.
