750,000 silver bars robbery
need for safe storage alternatives
By Nick Barisheff
Investors both large and small deserve ultimate
safety for safe-haven bullion investments
home invasion and the theft of $750,000 in silver bars from the private vault of
a 52-year-old British Columbia man in January underscores the need for safe
storage alternatives for bullion.
Management Group, we sympathize with the man who lost his life savings to
knife-and-gun wielding thugs who arrived at his door disguised as police
officers. It’s a pity he didn’t know he had a better option for storing his
safe-haven investment. The fact is that investors both large and small can
conveniently purchase and store bullion with the same levels of security enjoyed
by ultra-high-net-worth clients through the BMG BullionBars program.
wealthy bullion investors typically do not rely on home vaults to store their
life savings, they similarly (and for good reason) don’t rely on bank safety
deposit boxes. Even a single 1,000-ounce silver bar, worth about US$37,000 at
today’s prices, would not fit the average bank safety deposit box. Of course,
that assumes safety deposit boxes are safe.
ABC’s “Good Morning America” news team
published a story
about the fate of San Francisco resident Carla Ruff’s safety deposit box with
the Bank of America. The box contained jewelry appraised at $82,000. With no
notice, it was drilled, seized, and its contents turned over for auction to the
state of California, marked “owner unknown.”
This is by
no means an isolated case. As ABC’s news team discovered, debt-ridden state
treasuries are desperately seeking funds to balance their budgets, and with
increasingly flimsy respect for private property, citizens’ safety deposit boxes
are seen as a viable revenue source.
So are bank
safety deposit boxes a viable place to store your silver bullion? Sadly, in the
US, no longer. Nor in the UK.
The Mail on Sunday did an investigative article on an epic police raid that
saw more than 500 police offers smash their way through 6,717 safety deposit
boxes on a search for illicit weapons and assets derived from criminal activity.
In their zeal to apprehend the bad guys, the police soon realized they had
breached the security and confiscated the private property of thousands of
honest citizens. To add insult to injury, some of the carefully catalogued
confiscated items of cash, diamonds and family heirlooms went “missing.” One
detective told the newspaper: “Everyone presumed we had bagged a load of
villains who would not dare claim their iffy property. But thousands of the
box-holders complained.” One victim, Rabbi Yitzchak Schochet of Mill Hill
Synagogue, said, “Safety deposit boxes are supposed to be confidential. The
whole situation was very unsettling and an intrusion of privacy.”
was right to distrust safety deposit boxes, and wrong to opt for home storage,
our robbery victim in British Columbia made the right choice of asset class for
wealth preservation. Today’s media headlines are full of bad news: instability
in the Arab world; the threat of “QE3” in the face ongoing negative forecasts
for US housing values; and repeated warnings of impending 1970s-style inflation.
This barrage has compelled wise investors to replace or at least balance fiat
currency, stock and bond holdings with stores of physical bullion.
storage and bank safety deposit boxes off the table, what secure option does
today’s bullion investor have? The BMG BullionBars program is proving very
popular, and for good reason. BMG offers convenient, cost-effective and secure
bullion storage to all investors, whether they have large or small holdings. The
BMG BullionBars program offers any desired combination of one or multiples of
1,000-ounce silver bars, gold bars in
100-ounce and 400-ounce sizes, and 50-ounce platinum bars, which are stored on
an allocated and insured basis in a secure LBMA-approved bank vault in Toronto,
Canada. For readers who don’t know, the
World Economic Forum has ranked
Canada’s banking system as the world’s soundest for the third consecutive year.
With each bullion
bar purchased and stored, a physical Bullion Deed is issued that shows the
owner’s name, bar weight, assayer, purity, fineness and the bar serial number.
This process ensures that each bar is allocated to the purchaser (see definition
This sets BMG apart, because much of the world’s precious metal purchased or
traded today is stored in unallocated form (see definition of
In the event of the
custodian’s financial failure, holders of unallocated bullion become unsecured
creditors. Note that while there are reports almost weekly of bank failures in
the US, in Canada there has not been a single financial institution failure
allocated bars ensure that title of the bullion is assigned to the purchaser,
allocated bullion cannot form part of the custodian’s assets, and therefore is
not subject to any third-party claims. And if for any reason an owner should
desire to take delivery of the bullion, they may do so at their option.
The BMG BullionBars program offers that same level of safe-haven
security and convenience to all investors who wish to purchase bullion, a level
that until now has only been available to ultra-high-net-worth investors – to
store their bullion without risk.
Nick Barisheff is
president and CEO of Bullion Management Group Inc. For more information on Mr.
Barisheff, the company and its products BMG Funds and BMG BullionBars visit:
call 888.474.1001; or email