WHY BUY GOLD?

Buy, Store, and Sell Physical Precious Metals

As a wise investor, you understand the need to own hard assets such as real estate and other alternative assets as part of a balanced, yet diversified portfolio. Gold and silver ownership has become an important component of that strategy.

A well-defined portfolio owns a portion of gold and silver as every investor should have a store of “true” wealth. It also serves as a tangible hedge against a number of wealth preservation situations: currency devaluation, bank holidays, civil uprisings, or an increase in consumer prices. As confidence in the United States and other global economies, actions of the central banks, fluctuating paper currencies, and increasing government debt continue to create anxiety for the average investor, increasing one’s precious metals holdings seems prudent.

Therefore questions about what to buy, where to buy it, and how to store it, become an important part of the equation. The number of options can be overwhelming, so how does an investor know which options are best for them?

Like other investment decisions, you need to have a clear strategy so you don’t have a precious metals allocation that doesn’t meet your needs…in an unsuitable storage facility…that lacks the safety and security that will allow you to sleep at night. With so many choices you also don’t want to pay more than you should or be stuck without an easy way to sell your metals.

We will focus on answering these questions. When we area done, you’ll be familiar with all the options and can choose which is best suited for you.

Owning Gold – is the Ultimate in Capital Preservation.

Simply stated, gold is “true” wealth. It has served as money for more than 3,000 years. Over time, as countries’ currencies rise and fall, gold and silver has always served in its truest form as capital preservation. In the United States, if the dollar comes under attack as the world’s reserve currency, you have a solution in physical precious metals ownership.

In addition, gold is “portfolio insurance” against fluctuations of investing in equities, fiat currencies, and the mayhem of inflation. As more people become concerned with United States’ monetary and fiscal policies, they are turning to gold and silver ownership. During the financial crisis of 2008-2009, this is what happened as investors sought the comfort of a “currency” that retained their purchasing power as others were under attack. The availability to physical precious metals became difficult as supply and demand drove up premiums.

Shipping delays were commonplace, and lags sometimes reached up to six months. Precious metal wholesalers were unable to accurately predict when the Mints would supply them with products.

$﷯WAYS TO OWN GOLD,  AND OTHER PRECIOUS METALS There are various options for holding precious metals, and each will meet differing objectives and personal circumstances, including but not limited to: aHow much should you own aWhere should you store it aA ways to protect your purchasing power aStore of value that can also increase your wealth aAn effective way to preserve the wealth you have aRealization of asset diversification aAs a liquid resource during emergencies Each of these objectives can be achieved by selecting the appropriate precious metal ownership channel. Let’s consider the investor’s alternatives: Physical Gold vs. Paper Gold One of the first considerations is do I choose physical gold or “paper” gold ownership? Physical Gold Physical gold is just as it’s described - you actually own the physical coins and bars. This is a store of wealth, since the beginning of time, not a paper receipt that is essentially an IOU from the government. Bullion bars and coins is real money. Think of it as long-term protection against fiat money and the world’s central banks. Every investor should own a meaningful amount of gold and silver bullion regardless of the size of their portfolio. What you invest in is basically your personal choice and we believe an investor should start with the most basic and common coins: U.S. American Buffalo and American Eagle, Canadian Maple Leaf, South African Krugerrand, Austrian Philharmonic, Australian Nugget, and the Chinese Panda. The Canadian, Austrian, and Australian coins (.9999 fine) are all pure gold; while the Krugerrand and American Eagle (.9166 fine) are alloyed, but all coins contain 1 ounce of gold. We would advise consulting a coin dealer or doing your homework when acquiring commemorative, semi-numismatic and numismatic coins (collectible), as these are bought and sold at premium much greater than bullion coins. There is reason to buy these coins and pay that premium but unless you are willing to learn about coin collecting, be careful. Coin World (www.coinworld.com) is a good place to start your education if you are interested in these types of coins. Bars, or ingots, are another option and they typically have lower premiums than coins because they don’t have to be “stamped” into coins. But you should only buy bars that have been made by a recognized name or refiner. A future buyer of your bars will want to see a name they recognize, such as Johnson Matthey, Credit Suisse, Englehard, Royal Canadian Mint, PAMP, UBS, or Perth. Large bullion bars, which sell for the lowest premium per ounce, are the best choice for those looking to make a large investment and don’t want to worry about lots of individual coins or bars. Due to their high value, they are almost always stored in a secured vault. The most common weights are 1 kilogram (32.148 troy ounces), 100 ounces, and 400 ounces. Paper Gold, Non-Redeemable Paper types of gold ownership are very common over the past 10 years. There are divided into those that are exchangeable for physical metal and those that aren’t. The most commonly known are exchange-traded funds, or ETFs with the largest and best known is the SPDR Gold Trust (NYSE: GLD). Each GLD share is attributed to approximately one-tenth of an ounce of gold held in the company’s London vault and it is priced accordingly. GLD is an easy way to invest in gold price through your financial advisor or broker. The “spread” will likely be lower than the premiums for physical precious metal. If you simply want to “ride the market” and have paper ownership, this is a convenient way to do it. However, there are caveats. Theoretically, shares can be converted into physical metal, but the conditions attached make that all but impossible for the individual investor, and the company reserves the right to settle requests for physical delivery in cash. In addition, the rather opaque wording in the company’s prospectus has critics questioning whether some of the trust’s underlying assets might be paper gold instead of bullion. (The company denies this.) Finally, the company’s operating expenses are paid for by selling bullion, so the gold value of a share is declining slightly every day. Another option is closed-end funds (CEFs), the best known being the Central Fund of Canada (NYSE: CEF). Like ETFs, these are traded on major exchanges, backed by vaulted bullion, and should not be considered a substitute for physical ownership. CEFs are another paper-based way to ride the precious metal trend. The main difference between CEFs and ETFs is that ETFs move gold in and out of their vaults as shares are created and redeemed in tandem with rising or falling demand. CEFs buy physical metal and keep it, so the number of shares outstanding remains constant. Accordingly, CEF shares don’t necessarily mimic the price of gold. Instead, the share price responds to demand and thus can trade at a premium or discount to the net asset value (NAV) of the underlying precious metal holdings. A gold CEF will outperform physical gold in a strong bull market, as mounting investor demand collides with a static number of available shares and causes a premium to emerge, but it can fare poorly in a bear market, as demand falls away. Paper Gold, Redeemable Some gold dealers and investment firms offer gold held in a pooled account. Two ownership structures are available: allocated and unallocated. Both offer delivery of the physical metal. With an unallocated account, you don’t have title to any specific coins or bars, but instead have fractional ownership of the total pool of metal together with other investors much like when you deposit your money in the bank. With an allocated account, you own specific coins and bars within the total pool of metal. If you intend to regularly trade in and out of gold and never plan to take delivery, pooled accounts might make sense for you. The metal is purchased for a smaller premium than for physical, and most vendors offer guaranteed buyback that makes selling your metal quick and easy. Unallocated accounts tend to be the cheapest purchase option and often come with low storage fees. Who you do business with is important because the relationship is based on trust that the metal will be there should you opt for delivery, and that’s not a certainty since you have no clear title to specific property. Also, opting for delivery from a pooled account requires a fabrication fee. A third option is a segregated account where specific coins and/or bars are held in your name. A segregated account does have storage charges depending of the value of what is being stored.$

﷯STORAGE OPTIONS In-home
It is fairly common for newer investors to keep their physical precious metals at their home. A home safe is a very common way to do this. It is close and nearby in the event that you need to get it quickly. If there is a burglary, this is what the thieves will be looking for so store it in a “special” place. The disadvantages include hiding it so well that you forget about it; misplacing it with other items that get moved or lost; accidental theft as a family member shows it or tells someone you have it and it ends up being “gone”. If you chose this method, it’s a good idea to share with someone you trust where you have hidden your metals. Safe-deposit Box
The bank safe-deposit box is a traditional storage solution. They are close by and relatively convenient to access. But, as with every option, they’re not risk-free. Safe-deposit box contents are not insured against fire, theft, or natural disasters like tornadoes and floods. If your gold is stolen, you are out of luck. If the bank goes belly up, or a bank “holiday” is declared, it may be difficult and entail long delays to regain access to your safe-deposit box. In the event of a new government confiscation (such as happened in 1933), safe-deposit boxes can be frozen. Private vaulting facility
Considered to be the safest storage option of all is a private vaulting facility. This is where the larger clients, including wholesalers and Mints store their inventory. In-home storage, safe-deposit boxes, and private vaults are all good but eventually it will become prudent for anyone with a significant amount of physical precious metals to realize that keeping it all in one place means assuming risk. This consideration should also include what countries you should choose to store your metals. Please keep in mind that risks can only be reduced, not eliminated. There is no solution that doesn’t care some form of risk. Nevertheless, diversification is an essential element of an overall protection strategy against an uncertain future. One must be aware that foreign-held assets require greater awareness and planning: aAccess to your metal may not be quick or easy. Holding your metals internationally is best for those that have a sufficient amount stored domestically
aWhile the U.S. confiscation likely poses the greatest threat, a foreign government could move to control certain assets, as well. The risk varies by country, and is generally greater within the banking system than with a private vaulting facility. Evaluate a country before making a selection. Choose a location with a history of strong depositor protection, rule of law, and property rights, and select a vault within that location that has the strongest reputation.
aUnderstanding and complying with government reporting requirements is required. The bottom line is that storing gold abroad is all about minimizing risks and maximizing options. As your metal holdings grow diversification becomes increasingly important. International Storage There are a number of international storage solutions to choose from, but some are better than others and here are the important things to consider: aSafety - A highly secure, fully insured and audited vault protocols.
aNon-bank, vaulted storage - Private vaulting facilities are not subject to bankers’ hours, the declaration of a bank holiday, or potential risks within the financial sector.
aSegregated/allocated storage - No commingled holdings with other customers.
aCompetitive fees - The lowest-cost program is not always the best solution. You shouldn’t make trade-offs between cost and safety. However, do look for comparable solutions and try not to overpay.
aConvenience - A straightforward, unencumbered program that offers the ability to liquidate and/or take delivery of your holdings at any time. We believe the vaulting services within Zurich, Switzerland, Toronto, Canada, London, England, Sydney, Australia, Shanghai and Hong Kong, China and Singapore are among the world’s best storage jurisdiction. Finding the alternative that’s best for you requires that you do some homework. It may mean considerable time and paperwork to arrange for the transport of the metal to your chosen storage facility. Taking delivery can be costly and involve your presence at certain stages, and you could be responsible for filing requisite paperwork with the government.

﷯WHY PHYSIKA INVESTMENTS Because the Most Valuable Assets is Peace of Mind
One of the reason many people don’t own physical precious metals is it has typically not been easy to own and store. It should be easy to own gold without the hassles that have traditionally gone with the process of ownership. Thus, many investors have opted out of physical precious metal and have embraced ETFs, like GLD, due to the sheer ease. But that option doesn’t allow you to own the metal, or provide the benefit of international storage. The ideal solution is one that:
aAllows you buy and sell easily, just as you can with GLD
aGives you actual bullion ownership, in an allocated secure account
aComes with online access to allow you to buy and sell
aStores physical precious metals in the U.S. and Internationally
aIs competitively priced
aAllows you to open various types of accounts A Physika Investments (myPhysika™ account) does just that and here’s how: Physika is an institutional Physical Precious Metals dealer that enables its clients to conveniently and directly buy, store and sell gold, silver, platinum, and palladium on its online trading platform. Physika is not a broker-dealer, nor is it a bank, but is using technology to provide content and data to disrupt an inefficient niche in the market. Real time pricing and portfolio valuation. Our online platform allows you to check prices and get a current valuation of your metals portfolio. Fully allocated and segregated ownership. Simply select a product and buy it online. In seconds, the Physical Precious Metal is yours. Premiums among the best in the industry. Physika Investments uses a group of leading wholesaler/dealers and recognized refiners to acquire and dispose of metals. We manage the purchase, transportation, storage, record keeping, verification, and sale of your physical precious metals. Best-in-class storage. Physika has partnered with non-bank, commercial vaults for storage, insurance, and transportation services for our customers. All physical precious metal transportation and storage is fully insured through Lloyd’s of London. The allocated private accounts are verified by an independent accounting firm, with holdings and valuations reported daily. Our vaulting partners are IDS, G4S, Brink’s and Malca-Amit. High-integrity accounting procedures. All holdings are checked internally on a daily basis. An audit report containing each coin and/or bar is sent to Physika Investments by each of the vaulting partners, confirming precious metal holdings on an aggregate basis. Physika then matches the storage facility reports with its own internal reports to verify customer inventory. Customers can view their individual holdings online at any time. In addition, KPMG, an internationally recognized accounting firm, reviews precious metal holdings quarterly. No risk business. Because Physika Investments is not a broker/dealer, it does not engage in any derivative, hedging, or other paper-trading activities. All trades are immediately executed with our approved dealers in cash. Take delivery. Request delivery by logging in to your account on the Physika Investments website. Shipping will occur within 48 hours. Deliveries over $100,000 need to be requested verbally via phone, as those will be made by an armored car service instead of UPS or FedEx. Note: if you take delivery of a bullion bar, once it leaves the depository, the chain of custody is broken and an assay may be necessary when you sell. Wide range of account types available. We offer individual, joint, corporate, partnership, sole proprietorship, LLC, trust, IRA, and UTMA accounts. Our two most-asked-about accounts are the IRA and UTMA. Here is a breakdown of each: Physical Precious Metals IRA:
Physika Investments, in conjunction with the New Direction IRA, Inc., now provides a means to invest in gold, silver, platinum, and palladium while enjoying all of the tax advantages of an IRA. The Physika Investments IRA is a fully integrated precious metals IRA program, combining the purchasing power and storage options with the custodial services of New Direction IRA, to ensure you purchase only approved precious metals for your IRA. By bringing the custodial services of the New Direction IRA into its application process, customers are now able to fill out one simple application that covers the custodial account, precious metals account, and approved storage options. This is a simple and convenient way to buy and hold approved precious metals for storage in your IRA. Customers are able to make annual contributions, roll over funds from existing IRAs, and take distributions in the form of cash or precious metal. IRA accounts are easily managed online. Storage for IRA accounts is available in the United States, Canada and Singapore. Storage options within our Precious Metals IRA through New Direction IRA are available in Delaware, Los Angeles, New York, Salt Lake City, Toronto and Singapore. UTMA:
The Uniform Transfers to Minors Act (UTMA) account allows you to give the gift of precious metals to your children, grandchildren and other minors. Contributions of up to $14,000 per year are exempt from gift tax. The donor serves as the custodian of the gift until the minor reaches the legal age of majority. (This varies from state to state, but is typically 18 or 21.) Any of the precious metal coins and bars we offer can be held in an UTMA account, so a customer has the flexibility to purchase the precious metal products of their choice. Storage is available at any of our U.S. or international vaults through our agreements with IDS, Brink’s and Malca-Amit. PHYSIKA INVESTMENTS OFFERS REAL OWNERSHIP WITH THE EASE OF ONLINE BUYING, STORAGE, AND SELLING CAPABILITIES. A comprehensive checklist of our features and advantages: ﷯ Physika Investments is providing a comprehensive solution that is far superior to the alternative method of owning EFTs, like GLD. It’s just as easy to trade, yet you have the security of knowing that you actually own specific Physical Precious Metal stored at a location of your choice. With increasing government debts, out of control fiscal policies, and countless threats domestically and internationally, the need to own real assets like gold and silver is essential. Isn’t it time you implement a strategy to protect your client's wealth?

ABOUT PHYSIKA INVESTMENTS

Physika Investments provides a secure, transparent and convenient service for Independent Investment Advisors, Institutional Investors, and Wealth managers to buy, store, and sell Physical Precious Metals.

Physika’s online trading platform will allow for directly managing the purchase, transportation, storage, record keeping, verification and sale of allocated units of gold, silver, platinum and palladium in their account. The Physical Precious Metals are stored in protected and insured vaults – decided by you – located in Delaware, Los Angeles, New York, Salt Lake City. We also offer international storage locations in Toronto, London, Zurich, Shanghai, Sydney, Hong Kong, and Singapore. Investors also have the option to take delivery.

THE PROGRAM

Physika is offering allocated units of Physical Precious Metals to clients. Allocated units of Physical Precious Metals represents the purchase and holding of physical gold, silver, platinum, and palladium bars and coins which are transported and stored on a fully allocated, insured and physically segregated basis in approved vaults for the benefit of the client. Allocated refers to the fact that the client itself will own the Physical Precious Metal. Client may only acquire whole bars and coins.

Physika is the first technology company to offer the wealth management industry direct online access to content, news, and the most secure and transparent platform for acquiring, transporting and storing Physical Precious Metals for their clients'.

World-class Technology & Operations Platform

Physika has designed and implemented a fully integrated, flexible platform that provides easy order entry, execution, logistics management, and client services solutions.

Solutions can be customized to match how a financial institution does business
Focus is on providing superior service by partnering with best in class service providers
Seamless and easy order entry
Managed / fee-based account applicable

Transparent and Risk-Free Business Model

Physika is not a broker-dealer
Physika does not engage in any derivative, hedging or trading activities
Leverage will not be used to increase asset base
Physika purchases and sales will be executed immediately - in cash

Best-in-class Partnerships with Industry Leading Companies

Approved Wholesalers and Dealers - LBMA/LPPM recognized brands
Auditing: an internationally recognized auditing firm (through vaulting partners) on a quarterly basis
Transportation & Vaulting: Approved third-party, commercial vaulting partners
Insurance: Lloyd's of London (through vaulting partners)
Transaction Processing: myPhysika™ account management

PRODUCT OFFERING

“Allocated” Whole Bar Storage

Physika stores and secures Physical Precious Metals on an “allocated” whole bar basis whereby precious metals are held
in the vault specifically on behalf of each client
Client has the right to verify (advance noticed is required) their precious metal holdings

PRODUCTS

REQUEST AN ACCOUNT