Precious Metal Certificates vs Actual Possession

Below is a brief summary on the pros and cons of holding precious metals as opposed to holding a certificate.

Certificates: Certificates are just that, a note stating that you have X amount of precious metals owed to you. Redeemable upon presenting the certificate to the issuer.

Pro:
1. Usually will be insured by the issuer.
2. Paper is a lot easier to store.

Con:
1. Someone else has your investment. With a volatile economy,
a falling dollar and a host of other problems, your certificate could
become worthless in the event of some sort of physical or
economic catastrophe.
2. There is always the possibility of fraud
(Bernie Madoff type pyramid scheme)with a company so
Keep your eyes open and research if your going this route.
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Physical Possession: You actually possess the precious metals in question.

Con:
1. Precious metals can be heavy and take up lots room.
2. Possibility of theft and probably will not be insured.
3. Possible incurred expenses or complicated means
of storing/securing precious metals.

Pro:
1. It is in your total control to do as you wish, even if that
means burying it in your backyard.

Personally I take my chances and go with the option of physically holding my precious metals. You never know if some major catastrophe economic or otherwise could cause an issue with me exchanging a paper certificate for actual precious metals.

-Blogging4Bullion