gold and bank accounts

By honeysuckle on Tue, Aug 4, 2015 - 12:45pm

I’m a novice gold holder with a question: Both Bullion Vault and HAA require the use of a bank account for the transfer of funds to buy gold and to send money after selling it. Won’t this be a problem when it comes time to trade gold for cash? I understand that I can hold some physical gold as coins outside the bank, but for larger amounts, is there a way to bypass the banking system? What am I missing?


AaronMcKeon's picture
Status: Bronze Member (Offline)
Joined: Apr 29 2014
Posts: 77
Take Delivery

I believe the only way to avoid a wire transfer of money when you sell, or a [paper] check paid out to you, would be to take physical delivery of your gold and sell it for cash in-person.  The advantages of course would be insulation from the banking system but the disadvantages would be that you'll need to be smarter about how you sell it and the gold will have been outside the vaulting system, which means you'll have to prove its gold content (by leaving the gold in the vaulting system, companies like HAA can sell it quickly and easily because they trust the gold content).

My own strategy has been to build up a position of gold using HAA that I can use to preserve purchasing power if paper money loses its value or if banks fail, and at some point in the near future I may take physical delivery of a small portion of that gold to have as the "ultimate insurance policy" in case things get real bad.  So one will be the core position, kept physically on-hand, and the rest would be an overflow position kept vaulted.

Hope this helps.

KennethPollinger's picture
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 670
Boston Jumper: Nice

Thanks for the well-thought out strategy.  I too, have metal at HAA and in "hand."  So I agree that your proposal IS very helpful.  Ken

honeysuckle's picture
Status: Member (Offline)
Joined: Jul 26 2015
Posts: 3

Thank you, bostonJumper, for your comment.


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