Insurance for gold; a complex task
Insurance for gold; a complex task
Insurance for gold; a complex task
Insurance for gold seems to be never encouraging or upholding in the management and financial strategies of insurance companies or often it has forgotten in the hustle and bustle of economic world. Presently the world is looking forward the precious metal as safe deposits, but it is amazing that there are any specific insurance schemes for it.
Recently gold has recorded its price at the tops in the world market and runs over any thing and everything in the commercial sector. The financial recession and the depression in the world stock exchange forced the depositors to seek gold as their resorts for safe deposits. Eventually, appreciates its price without any stake. Now the price has abruptly hiking. So, people spend more money in gold than in stock exchanges. But how often do they believe that their gold or gold ornaments will be stolen, or that they might suffer a higher depreciation in price. Do they ever think of an insurance company in relation to their larger deposits on the yellow metal?
But, presently there are no specific proposals from any financial corner or commercial sector to compensate such future hazards of the depositors. Have I got your attention? Insurance for your gold deposits now seems to be risky at this point of thinking. But it is worthwhile if there is some standard financial insurance for your ornaments which is similar to an itemized entry in your household insurance.
There are certain facilities in your banks to keep the valuables in the safes or lockers of which you have been allotted, but the banks authorities are not taking the responsibility of the causalities. Here the banks can take certain new steps to dilute the risk of the depositor and make profits. By entering a mutual agreement between the subscriber and the bank on the gold and gold ornament deposits in the locker or safe of the bank, that the bank can levying or charging as risk fee on such deposits of the subscriber in the lockers and compensated him instead for the casualties.
If commercial banks have taken such steps you may well get reimbursed for the cost of the gold and gold ornaments, but you have to pay certain money rather than the locker rent and which is depends on the volumes or weights of the metal. It is to be beneficial of both the bank and the subscribers.
The insurance companies are normally not interested or offering security on gold ornaments due to various reasons. The complexity of assessing the price, casualty, confirmation of theft or loss of the incumbents; on the gold or gold ornaments at the entering stage and the compensating time are forcing the companies to leave the venture. And if the company has decided to offer insurance schemes for gold metals they have to collect high premium from the subscribers. It is not to be attractive or worthwhile for the depositors when compared to the appreciation that they want to enjoy.
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