You'd be an unsecured creditor, and as such you'd end up with nothing...just a little too "slick" in my book...
Yeah, I agree with others. Unfortunately the PM market has a very long and ugly history with identical schemes. PM vendors promise you its in a "vault", yet its "leased short term". "No, no, no", they claim, "you have physical metal its just in my vault so I can't show you, or it was leased so we are waiting the replacement metal", etc ad nauseum. When the Sheriff comes in the door, the money is always gone and anyone who thought they had physical metal has nothing but a claim in a shyster company. These have been going on since at least the 70's by memory. I always wondered what made PM investors such suckers for these shysters. Over and over PM investors fall for it, the owner of the company gets to live large for a while, he gets busted, goes to white collar jail a few years and comes out and lives on what was probably hidden profits from his scam. Unfortunately, many start the scam up all over again. I always thought these thieves should get sent to a real prison and have to have a boyfriend named "Big Bubba" or "Angry Leroy".
They just need to use your physical silver to keep up the paper scheme. In the end, they get the money and your silver. I'd run away fast!!!
Sounds something like Fort Knox. "Of course we have the gold in storage, we just can't show it to you". As Wimpy would say, " I can pay you Tuesday for a hamburger today ".
A month or two ago there was a company promising IRA gold/silver holdings at their "Vault" and it turned out to be a scam. People want to leverage their investments in gold and silver and they get greedy. Of course, who wouldn't want to make a few percentage points every month? But really, being a small investor - do you think big companies are going to hassle with you unless they expect to make money off of you? And you are taking on all of the risk. Even if it was legit, and it could be - at least at first until someone figures out that there is free PM sitting in a vault somewhere and their lawyers give them an exit strategy. He who has the gold makes the rules. For a few percent profit - you're better off selling the PM and putting the money into a mutual fund.
