(work in progress)
Gold is sometimes described as an insurance policy against financial disaster. This got me thinking, if it were sold like most insurance policies it would come with terms, conditions, and disclaimers. So, I decided to write such a policy.
1. This policy insures you against inflation and/or the need to transport wealth across borders, subject to terms and condtions as specified.
2. Insured may choose to cover any portion of their wealth as measured in a local currency. Premium is all the local currency that insured wishes to protect. Upon payment of premium, insured will receive an ammount of gold at the current exchange rate between the local currency and gold.
2a. In addition to the premium, Insured will pay an additional premium (commission) for a physical policy. The additional premium is currently 10% above quoted exchange rates. The policy may currrently be redeemed at close to face value or with small refunds; but historicly has been redeemed at less than face value.
3. Currency exchange rates are subject to frequent and unpredictable changes. This may, radically impact the ammount of coverage to the insured. Be advised that it has been known to take decades for the rate of coverage to return to where it was when the policy was originally purchased.
4. THEFT — Policy does not insure against theft. If insured choses to receive gold in physical form, theft may reduce coverage to zero, resulting in a total loss to the insured. Insured is advised to purchase theft insurance if chosing a physical policy. Note that because policy may insure a large ammount of wealth in a form that is easily transported, there may also be large losses due to theft. Customers wishing to mitigate against such circumstances may wish to consider our silver policy. Please also note that the purchase of theft insurance will result in gradually reducing your coverage against inflation as time passes.
5. FRAUD — Policy does not insure against fraud. Verification of valid coin is the responsibility of the insured. Insured is advised to read the prospectus of a paper gold instrument carefully.
6. GOVERNMENT ACTION — Policy does not insure against government actions specificly directed at policy holders. These include but are not limited to property tax or confiscation resulting in the holding of such policies becoming illegal. Policy holder is advised to carefully weigh the implications of chosing to disobey the government under such circumstances.
7. SOCIAL VALUE — Policy holder is advised that the policy is based on a long standing tradition of gold holding value within most societies. There is no guarantee that society will continue to hold gold in such high esteem.
8. Actual means of transport across borders may be difficult. It is the responsibility of the insured to see that this can occur safely, should such a need arise.
9. “GOLD FEVER” — Insured is advised of the human condtion known as “gold fever”, in which certain individuals who know that gold is present will abandon their usual decorum and sense of morality. This may result in physical harm and/or total loss of your policy if it is known that you are holding. Insured is advised to stay tight lipped about the whole affair.
