Date of publication: Monday 19 Muharram 1442 AH – September 07, 2020 KSA 16:36 – GMT 13:36Source: Dubai – Arabia.net
For centuries, gold has been an irresistible target for real and imaginary theft. However, theft of gold in large quantities is rare, but a thief can make a great fortune with it. When armed robbers stole 3 tons of gold from a warehouse near Heathrow Airport in Britain in 1983, Lloyd’s of London Insurance Company paid compensation for the lost gold, equivalent to $ 180 million in today’s prices.
The difficulty in insuring gold now, in that insurance companies set a maximum amount of insurance coverage that they will bear for each treasury.
The higher the price of gold, which has increased by 37% since the beginning of the year, the smaller the number of insurable ounces in each location or treasury, given the maximum limit set by insurance companies for each ounce.
This is not a concern for holders of large quantities of gold worth tens of billions of dollars, because these quantities are a treasure of such high value that it cannot be fully secured anyway.
The major banks such as GBMorgan and HSBC, which run the major coffers, bear the rest of the insurance responsibility themselves for large amounts of gold.
But the matter is different for other stores around the world, such as hangars near Heathrow Airport in London and storage rooms buried in the depths of the Swiss Alps, as the high price of gold may require insurance companies to ensure that the prices of stored gold do not exceed the specified insurance coverage.
“The main problem in this area is not space but insurance,” said Ludwig Karl, a board member of the Swiss gold protection company that manages vaults in the Alps.
He added, “You can put all the gold in the world in a big place, but you will never be able to insure it.”
In general, the solution is to build more storage space, which distributes the risks, and you can insure each site individually.
A subsidiary of Lloyd’s refuses to insure more than $ 150 million in gold stores, and in the event that all the insurers belonging to the company are accumulated, it is not possible to insure a single gold treasury with more than $ 2.5 billion.