Here is an update on the progress of Miles Franklin’s Canadian bullion storage program, operated from Lasalle, Quebec at the world’s premier secured armored guard storage company located in a suburb of Montreal, Canada.
Joel Kravitz started building the relationship 18 months ago, and last year finalized all details, enabling our first shipments to Montreal in the third quarter. Just six months later, we have seen tremendous uptake of the program, from both Miles Franklin clients and others who independently learned of our Canadian Vault partnership. I am thrilled to see strong initial interest, and ultimately expect offshore storage demand to grow dramatically as investors respond to heightened global political risks. The majority of Miles Franklin’s customers are U.S.-based, but each week we receive new inquiries from international investors, some worried about political risks outside America, and some simply looking for a secure facility to store their bullion.
A month ago, I traveled to the facility in Montreal with Joel and Andy Schectman, Miles Franklin’s president. I couldn’t have been more impressed with the layout, security systems, organizational procedures, and personnel, of which I wrote about in my December 7th RANT, “CANADIAN BULLION STORAGE”
Since then, Joel has worked exhaustively to optimize the partnership, and clients to understand how the program can best serve their needs. One of the main issues was that of billing, as our gold storage price structure was based on a percentage of market value, yielding a varying fee each month. This is common industry practice, but our clients found it frustrating. We are happy to announce that, effective today, our gold storage fee has been changed to a flat rate of $1.00/ounce per month.
We already charge a monthly flat rate of $0.035/oz for silver, so all future storage fees will be automated and consistent. Moreover, at current spot prices, our rates for both silver and gold are below the industry norm of 0.75% per year, a gap that will widen further as gold and silver prices rise. We believe this fee structure is favorable to clients, and note that such rates are discounted 4% for clients that pre-pay for one year of storage services.
Offshore bullion storage is not for everyone, but for many represents a cost-effective way to protect assets from burglary and political risk. There is no way of knowing what the future holds, but as of today Canada is one of the safest political jurisdictions.
If you have further questions about Miles Franklin’s unique Canadian precious metal storage program, please contact Joel Kravitz at 877-375-1365, or via email at email@example.com