Security - Third party risk in the high-security warehouse?

Dr. Franz Hölzl, Board Member of Auvesta, expresses his views regarding the storage security of precious metals at Auvesta.

Benedikt Hausler:

The main motivation of most gold buyers is security. At Auvesta, the customer buys precious metals and these are usually stored in external high-security warehouses.

Now you often hear the term "third party risk" in social media. Can you briefly explain what this is and whether Auvesta' clients are affected by this risk?

Dr. Hölzl:

Generally, the first party is the client, the second party is Auvesta and the third party is the external warehouse. So, in our context, this concerns the question of whether there is a risk in this external warehouse.

If Auvesta would not store at the large international groups, then a corresponding residual risk could not be ruled out. But we do store at large corporations (Brinks, Loomis, Prosegur) - and insure our goods.

The first thing you need to know is that these high-security warehouses are protected. You definitely can't get into easily. Even if I want to check the stocks, it's a big procedure. I have to announce it long before and deposit my passport.

The second thing concerns the insurance. The individual goods stored there are not insured, but the warehouses are insured as warehouses. This means that the storage company reports the respective stored values to its insurer. Therefore, it is not reported what is to be insured, but the value.

Everything that is stored there (precious metals, paintings, jewellery, ...) is then insured by means of an all-inclusive insurance with large international insurance groups. These in turn have consortium insurers and the risk is also bearable for them.

That means, if something would happen there and the metal wouldn't be there any longer, then I would say: I sleep well. I have someone who will pay for it.

And such a large international corporation is not going to put its business at risk. It is true that Auvesta stores values in the nine-figure range at these storage companies. But for these companies these are the proverbial "peanuts". You have to be clearly aware of it. And none of these companies, nor any of their insurers, will jeopardise their own reputation for this.

And that in turn is the security, first of all for me as the Board of Auvesta Edelmetalle AG, but also for our clients and our business partners. This means that the metal of the clients, the property of the clients, is stored safely. No matter what happens.

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First place for Auvesta in the category "Germany's best providers of gold savings plans 2022"

In 2022, Auvesta Edelmetalle AG was the winner of a survey conducted by the Handelsblatt with over 48,000 customer reviews. Auvesta was named most frequently in the category "Germany's best provider of gold savings plans 2022".

Auvesta Edelmetalle AG has also been subject to the external audit by Focus Money since 2016 and has always been awarded top marks since then.