Precious Metals Investments | Metal Account

This is what you call an account on which precious metals (Gold & Silver) are booked.
These accounting entries embody a right of delivery (=credit balance) of a certain amount of precious metals from the holdings/assets of the bank.The metal is not converted in possession of the account holder and therefore there is no tax raised on it.
Put simply,it is not an account based on $, but on a certain quantity of precious metals.

Metal accounts are suited for investors who don't buy precious metals as real coins or bars to deposit them somewhere, but still want to participate in the performance of the price.
Such a metal account could be interesting for traders as well under certain circumstances if they want to specualte for both Ups & Downs of the metal price. An interest yield on the credit balance doesn't exist and there is no right of physical delivery in most cases as well.
If there is a right of physical delivery which is claimed by the investor,tax is raised on the current price
on day of payment, given that there is a tax on the respective metal.

A bargain or selling is possible at any time. This type of investment is often to be met in Switzerland,
Luxembourg and meanwhile in the United States, too.

Summary:

-just little expenses
-often no right of physical delivery
-an alternative would be certificates(open end) on gold and silver
-metal accounts are not suited as an asset in times of crisis
(it's just paper money as long as there is no right of physical delivery)
-Please take account of the Disclaimer,as with any other kind of investment/asset!

An example for a company which offers such metal accounts is "e-gold"
E-gold capital is 100% backed by gold and physical delivery is possible at any time.
Read more about- - - - - - - - - - - -E-Gold | A Digital Gold Currency- - - - - - - - - - - - - -