The funds granted to investors to gain a direct ownership of gold is booming. Physical Sprott Gold Trust, managed by Sprott Asset Management in Toronto, recently added 250,000 ounces to their possessions in the Royal Canadian Mint. The fund allows investors to redeem their shares and take possession of bullion.
The big banks are also increasing the space to store gold: JP Morgan Chase & Co. announced it will open a vault in Barclays Singapore and expand its facilities in London. People are attracted by physical assets outside the banking sector that do not pose a credit risk to anybody, as such gold is the perfect penny stocks for dummies in the banking and finacial sector because there is no credit risk associated with gold, as opposed to owning stocks and bonds, particularly junk bonds. Non-banks have agreements with operators vaults to store gold in various places, including Switzerland and Canada, regarded by some as low geopolitical risk, thereby making gold an even safer investment.
