All gold, silver, and bars
owned by GRM GOLD's customers are stored in safe custody of GRM GOLD INDIA
All precious metals in GRM GOLD are in allocated storage, meaning
that the bars of metal are contained within discrete and identifiable forms of
physical bullion that meet the Chain of Integrity Standard. The metal in a customer's Holding quantify
that customer's portion of the total amount (i.e., weight) of allocated metal
stored in the vault on behalf of all GRM GOLD customers. Please see Clause 8 of the Customer Agreement for a more detailed
explanation of storage.
Allocated storage of precious metals is the best way
to store gold, silver, and because it implies that you are the direct owner of
the metal, not GRM GOLD or any other third-party. When a precious metal
is allocated, there is a defined and recorded owner of the metal, namely you. The manager of the metal (i.e., GRM GOLD)
or the vault does not have any direct claim on the metal.
A good way to compare allocated versus unallocated metal is to
look at it in accounting terms. Allocated
metal does not show up on the balance sheet of GRM GOLD or the vault operator.
It is an off
balance sheet item, which is the property of its customers.
Unallocated metal shows up in a company's balance
sheet as an asset, and the claims to the metal from its customers as the corresponding
liability. This is how many
accounts with financial institutions work, as well as the various certificate programmers
worldwide sponsored by governments or private entities. If one of those entities were to go bust, any of its
creditors would have first claim to those assets, leaving the entity's
customers with no access to the metal (liabilities) promised to them.
When your metal is held in allocated storage, you have the assurance
that your gold, silver, and is protected should GRM GOLD or the vault it
works with ever face bankruptcy or other financial difficulties, because their
creditors would have no claim to your property since it is not a financial
asset of GRM GOLD or the vault.
Although your metal is always allocated, not all bars held in our vaults
are identified as specifically belonging to a certain customer. GRM GOLD has no ownership interest in your metal and title to a certain amount of metal
rests with you, even if your metal is not specifically identified. You can however register individual
gold, or bars in your name and thus indicates your
undivided ownership of these bars.
Yes. GRM GOLD
insures all metals against risks such as theft.
The evidence of
insurance is displayed on our website. Please
refer to the Customer Agreement for more information.
The possibility exists that a bar of gold, silver, or may not
contain the weight of metal it is said to contain. To mitigate this risk, firms within
the bullion industry establish a chain of integrity. Only companies that
meet certain criteria for operational performance and financial soundness can
participate within the chain. For example, a bar from outside the chain can
only be entered into the chain if it is first melted down. Then the new bar fabricated by an approved
refiner who attests to the new bar's weight and metal content is entered into
Yes. To mitigate the
risk that any bar of gold, silver, held in a Vault does not contain the precise
weight of metal it is said to contain, GRM GOLD utilizes a Chain of Integrity
Standard. This standard provides that
all forms of gold and silver bullion in the Vault must in all respects meet the
standards established by the Indian
Bullion Market Association, and bullion must meet the standards established by
the Indian and Market Association.
All precious metals within GRM GOLD are held in allocated storage in
the form of Indian Bullion Market Association (LBMA) and Indian Market approved bars. Therefore, it is not possible to store coins or small bars with GRM
Instead, we offer our customers the option to take physical delivery of
small gold bars by converting their gold grams into 100 gram or 1 kilogram
(1,000 grams) GRM GOLD bars. The refiner GRM GOLD produces all bars to an
exacting standard, ensuring each bar has a purity of 99.9 per cent gold. Further information on GRM
GOLD gold bars is available
As metals increase in value the
cost of insuring them also increases, that is why GRM GOLD charges a flat fee
for storage in terms of gold grams, silver ounces, grams and
grams, rather than using a fixed currency amount.
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