Precious Metal Accounts

A metal account, also known as a precious metals account or a gold account, is a type of account offered by some banks that allows clients to buy and sell precious metals, usually gold or silver, much like they would buy or sell foreign currency.

The specifics can vary, but here's a general overview of how a metal account might work:

  1. Opening an Account: To start, you would open a metal account as a standalone account, or linked to a savings account.
  2. Buying Metals: Once your account is set up, you can buy precious metals. The price will be based on the current market rate, plus any commission or fees charged by the bank. When you buy, the bank will credit your account with the amount of metal you purchased.
  3. Holding Metals: The metal you buy is usually held in an unallocated or allocated account. In an unallocated account, you have a claim on a certain amount of metal, but it's not specific bars or coins — it's just part of the bank's overall metal holdings. In an allocated account, specific bars or coins are set aside for you. Allocated accounts are more secure, but they often come with additional storage and insurance fees.
  4. Selling Metals: When you want to sell, the bank will debit the amount of metal from your account and credit you with the cash equivalent, based on the current market rate.
  5. Physical Delivery: We offer the option to take physical delivery of the metal. This means you can convert your metal balance into physical bars or coins, which you can take possession of. This usually involves additional fees.


A metal account can be a way to invest in precious metals without having to store and insure physical bars or coins yourself. 

The types of precious metals that can be stored in your precious metal account are: 

  1. Gold: Gold is by far the most common precious metal held in our types of accounts. Gold is a popular investment due to its historical use as a store of value and its relative stability compared to many other forms of investment.
  2. Silver: Silver is another commonly held metal. While it is typically less valuable per ounce than gold, it has many industrial uses and can be a valuable investment.
  3. Platinum: Platinum is a valuable metal that is often held in precious metal accounts. It is rarer than gold and silver, and it has many industrial uses, especially in the automotive industry.
  4. Palladium: Palladium, like platinum, is a rare and valuable metal that is often used in industry, particularly in catalytic converters for cars.
  5. Rhodium: Rhodium is a rare and valuable metal often used in the automotive and jewelry industry. Some banks may offer it as an option in a metal account.




Safeguard Your Gold Assets

In an era where economic landscapes are perpetually shifting and geopolitical tensions can impact financial markets, gold remains a paragon of stability and a venerable instrument of wealth preservation. Nonetheless, for residents of regions encumbered by arduous import restrictions or punitive taxation on gold, like in India, securing and augmenting one’s holdings presents considerable challenges. It is within this complex environment that our International Gold Safe-Vault Services offer an indispensable solution, enabling investors to navigate these hurdles with finesse and assurance.

Our Proposition: Security and Accessibility Redefined

We have conceived our safe-vault services with the utmost attention to the exigencies and preferences of discerning investors. Situated in geopolitically stable locations, our facilities epitomize the zenith of security and operational excellence, ensuring that your investments are shielded against all vicissitudes.

Unfettered Access to Your Holdings

In alignment with our ethos of providing exceptional client service, we proffer two modes of access to cater to the distinct requirements of our clientele:

Direct Physical Access:
Clients may opt to visit our vaults for a tangible engagement with their assets. This facility is available by appointment, affirming our commitment to confidentiality and personalized service.

Digital Transactional Access:
Acknowledging the dynamism of the gold market, our platform facilitates immediate transaction orders for the sale or acquisition of gold. This service is designed for investors seeking to optimize their portfolio’s performance in real-time, supported by our expert team’s execution capabilities.

Distinguished Advantages of Our Service

  • Strategic Global Presence: Our network of vaults, strategically located in jurisdictions that offer a confluence of security and fiscal efficiency, is designed to maximise your investment’s potential.
  • Paramount Security Standards: Utilizing cutting-edge security technology and protocols, we provide an impenetrable safeguard for your assets, ensuring peace of mind.
  • Customised Flexibility: Our service is tailored to grant investors autonomy in managing their holdings, be it through personal oversight or digital directives.
  • Transparent Operations: Integrity and transparency are the cornerstones of our operations, guaranteeing a straightforward and trustworthy partnership with no concealed contingencies.


Elevate Your Investment Strategy with Secure Storage Solutions

In the volatile domain of international finance, securing your gold investments with a partner that offers not just security but strategic advantage is paramount. Our International Gold Safe-Vault Services stand as your bulwark against the uncertainties of gold acquisition and storage in restrictive regimes. We not only offer a sanctuary for your assets but also empower you to navigate the market’s fluidity with confidence and strategic insight.

Discover the pinnacle of gold security and management with our bespoke services. Reach out to us to explore how we can facilitate the safeguarding and enrichment of your gold portfolio.

Discover our Gold Standard of Investment with IFB Bank’s Precious Metals Accounts 

In the ever-evolving world of investments, securing your wealth with tangible assets like precious metals remains a timeless strategy. At IFB Bank, we elevate this age-old wisdom to new heights with our unparalleled Precious Metals Accounts. Designed for discerning investors who seek both the luster of gold and the solidity of a bank vault, our accounts offer an unmatched blend of security, flexibility, and growth potential.

A Fortress for Your Wealth

Security is not just a feature at IFB Bank; it’s a promise. Our state-of-the-art vaulting facilities ensure your precious metals are safeguarded in the most secure environments, under constant surveillance and with the highest standards of access control. Rest easy knowing that your investments are protected by cutting-edge technology and a legacy of trust.

 

Investment, Tailored to You

Whether you’re drawn to the steady allure of gold, the industrial charm of silver, or the rare prestige of platinum and palladium, our Precious Metals Accounts cater to every preference. Each account is a gateway to:

          

  • Direct Ownership: Physical precious metals, directly attributed to you.
  • Real-time Management: A digital interface that puts control at your fingertips, offering real-time access to account details, transaction histories, and market insights.
  • Flexibility and Liquidity: Options to add to your holdings or liquidate your assets with ease, responding agilely to market changes or personal needs.

 

The IFB Advantage

Choosing IFB Bank means partnering with a financial institution that understands the unique value of precious metals in a diversified portfolio. Our experts are dedicated to providing personalized advice, ensuring your investments not only preserve wealth but also offer the potential for growth. With IFB Bank, you’re not just opening an account; you’re unlocking a world of possibilities.

 

Secure Your Legacy Today

In a world of fleeting opportunities, the enduring value of precious metals stands firm. With IFB Bank’s Precious Metals Accounts, you gain more than just a safe haven for your investments; you embrace a partnership that’s as committed to safeguarding your wealth as you are. Invest in certainty. Invest in excellence. Invest with IFB Bank.

Our Vaulting Facilities

for your convenience with Malca Amit

The Resurgence of Physical Gold and Silver in the Wake of Basel III Regulations

The global financial landscape is undergoing a seismic shift, and the Basel III regulations, spearheaded by the Bank for International Settlements (BIS), are at the forefront of this transformation. Among the most significant aspects of this reform is the reclassification of gold as a Tier 1 asset, placing it on par with cash and other high-quality liquid assets. This move not only reaffirms gold's longstanding position as a bastion of financial stability but also heralds a new era of strategic positioning for precious metals in global finance. The total amount of gold on Earth is estimated to be around 212,582 tonnes, with about 201,296 tonnes having been historically mined and 53,000 tonnes remaining in identified underground reserves.

According to a report by the World Gold Council, titled "Gold and the Basel III regulations," this regulatory change is expected to have a profound impact on the demand for gold from central banks and other financial institutions. The report states, "The new regulation recognizes gold as a viable liquid asset, encouraging banks to hold more gold as part of their liquid asset buffers."

In an era marked by unprecedented economic uncertainties and regulatory shifts, the allure of physical gold and silver as steadfast guardians of wealth has never been more compelling. The Basel III regulations underscore the intrinsic value of these precious metals, encouraging banks and financial institutions to hold physical gold as a liquidity buffer. This recognition has significant implications for the demand and market dynamics of gold and silver.

While instruments like exchange-traded funds (ETFs), options, and futures provide exposure to gold and silver, they often involve leverage and counterparty risk, which can undermine the fundamental purpose of holding precious metals as a hedge against financial instability. In contrast, physical possession of gold and silver offers tangible security and direct ownership, minimizing the risks associated with these derivative instruments.

A report by the Boston Consulting Group, titled "The Shifting Landscape of Gold Investing," highlights the growing interest in physical gold as a safe-haven asset and a hedge against economic instability. The report notes that while gold ETFs have gained popularity, they are not without risks. For instance, the SPDR Gold Shares (GLD), the largest gold ETF, with assets under management totaling approximately $56.6 billion and shares outstanding around 282.9 million as of March 2024, holds only a fraction of its assets in physical gold. According to its latest prospectus, the GLD ETF has approximately 30% of its assets backed by physical gold, while the remaining portion is invested in derivatives and other financial instruments.

This high leverage and reliance on derivatives expose investors to counterparty risks and potential mispricing, undermining the very purpose of holding gold as a safe-haven asset. Furthermore, a study by the CPM Group, a leading independent commodity research and consulting firm, emphasizes the role of silver as a crucial industrial metal and an attractive investment opportunity, highlighting the importance of owning physical silver to benefit from its intrinsic value and potential price appreciation.

For discerning investors and savers, the partnership between trusted financial institutions and the tenets of Basel III regulation presents a unique opportunity to hold physical gold and silver. In a landscape often dominated by synthetic and paper-based instruments, the emphasis on physical gold and silver stands as a beacon of security and tangibility. A report by the LBMA (London Bullion Market Association), titled "The Role of Physical Precious Metals in Investment Portfolios," highlights the benefits of holding physical precious metals, including their tangibility, liquidity, and diversification potential, while mitigating the risks associated with leveraged and derivative-based instruments.

The dynamics of the gold and COMEX markets further illustrate the shift towards a more physically backed gold trading environment. According to data from the Commodity Futures Trading Commission (CFTC), the peak COMEX open interest in 2020 reached 800,000 lots, equivalent to about 80 million ounces or approximately 2,500 tons of gold. This volume was considered 96% unbacked or synthetic. However, recent years have witnessed a significant reduction in synthetic gold trading volume, with current open interest halved, indicating a movement away from paper-based instruments towards more physically backed forms. Current COMEX Open Interest Reduced to about 407,000 lots, which is roughly 40 million ounces (or half of the peak mentioned). Significant volumes of gold are involved in synthetic trading, yet precise current holdings or volumes in physical form are not detailed. A report by the CME Group, titled "Understanding the COMEX Gold Futures Market," provides insights into the evolving dynamics of the gold futures market and the increasing demand for physical delivery.

Similarly, the iShares Silver Trust (SLV), a prominent silver ETF, has faced criticism for its lack of transparency and potential for price manipulation. A report by the CPM Group, a leading independent commodity research and consulting firm, notes that the SLV holds only a small portion of its assets in physical silver, with the majority invested in derivatives and other paper instruments.

In conclusion, as the global financial landscape undergoes a paradigm shift, the case for holding physical gold and silver with trusted financial institutions is irrefutable. The Basel III regulations serve as a testament to the enduring value of these precious metals, ushering in a new era of financial prudence and stability. While derivative instruments like ETFs, options, and futures provide exposure to precious metals, they often involve leverage and counterparty risks that undermine the fundamental purpose of holding gold and silver as a hedge against financial instability. By owning physical gold and silver, investors can benefit from direct ownership, tangibility, and reduced counterparty risk, aligning with the principles of financial resilience advocated by the Basel III regulations. In the face of synthetic alternatives and digital currencies, the tangible security and intrinsic worth of physical gold and silver stand out as a prudent choice for safeguarding wealth and navigating the complexities of the modern financial world.

Offering 24/7 Trading and Physical Delivery Across Global Metal Exchanges

Seamless Access to Global Metal Markets

At IFB Bank, we are proud to announce that our services now include round-the-clock trading across all five leading metal exchanges worldwide. Our commitment to providing continuous access to global markets ensures that our clients can trade metals anytime, maximizing their opportunities in the dynamic trading environment.

Comprehensive Coverage of Leading Exchanges

We facilitate trading on the following prestigious exchanges:

  • London Bullion Market Association (LBMA)
  • COMEX (Commodity Exchange Inc.)
  • Shanghai Gold Exchange (SGE)
  • Tokyo Commodity Exchange (TOCOM)
  • Singapore Exchange (SGX)


These platforms are instrumental in the global metals market, each offering unique advantages and access to a variety of metal products including gold, silver, platinum, and palladium.

Expertise and Support

Our team of experts is dedicated to supporting clients through every step of the trading process. With extensive knowledge of market trends and regulatory environments, we provide insightful guidance to ensure informed trading decisions.

Flexible Physical Delivery Options

In addition to trading capabilities, IFB Bank offers flexible physical delivery options. Clients can choose to have their metals delivered from either Europe or Singapore, depending on their logistical needs and strategic interests. This service underscores our commitment to accommodating the diverse preferences and requirements of our global clientele.

Secure and Efficient Transactions

Security and efficiency are paramount at IFB Bank. We employ advanced technology to facilitate secure transactions and ensure the integrity of every trade. Our sophisticated logistics network guarantees efficient physical delivery, providing peace of mind to our clients.

Join Us

Explore the advantages of 24/7 metal trading and reliable physical delivery with IFB Bank. Our dedication to excellence and client satisfaction makes us a preferred partner in the metals trading industry. Join us to experience unparalleled service and access to the global metals markets.

For more information and to start trading, contact our customer service team.

IFB Bank - Your Gateway to Global Metal Trading

International Finance Bank LTD

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