Choose Your Catastrophe Insurance

[Ardent Listener]

Choose Your Catastrophe Insurance

Dave Forest
Published 9/24/2010
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A precious metals note today, in honor of gold breaking $1,300/oz (briefly) this morning.
Some of the buying that's propelled gold lately is from investors who want to hold metal as currency. Having something tangible in your pocket provides insurance if another financial catastrophe descends on the world.

JP Morgan recognizes this demand. On Wednesday, JPM announced it will open its first precious metals storage vault in Asia.

The facility will be located in Singapore, near Changi Airport (just in case you want to grab your gold and fly). The stated goal is to provide precious metals storage for "corporate, institutional and retail" clients.

Some of the people using this facility will be investors from outside Asia, looking to geographically diversify their gold holdings. Many investors are leery of keeping all their gold in one basket, just in case governments get confiscatory.

Perhaps more interestingly, the new facility will allow local Asian investors to get more involved in owning physical metal. Recently, the Singapore Mercantile Exchange announced the launch of a physically-settled gold contract that will be delivered at the JP Morgan vault.

But will gold be the number one choice in Singapore? Asia has always been a little different when it comes to precious metals. Many Asians prefer platinum as "catastrophe insurance". ...................

Continued, see link below.


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[beauanderos]

Hmmm, seems like since they're running out of skeptical fools in the US to dupe, they're expanding their theivery overseas? I hope they have some ex-Morgan Stanley advisors guiding them on how to charge the most for their non-existent holdings.