Friday, 29 March 2024 07:00

OrSuisse negotiable warehouse receipts for precious metals

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Documents that act just like securities

Investors who want their physical precious metals to have more flexibility should take a close look at OrSuisse storage facilities in Switzerland. Why? Because unlike normal custody solutions, clients receive special negotiable warehouse receipts in return for their deposits of precious metal bars and coins. How do clients benefit? These negotiable warehouse receipts are issued in accordance with the Swiss Code of Obligations, which means they are recognised as securities, thus allowing the transfer of goods listed on the warehouse receipt, even without any physical movement of goods.

Your assets are stored in allocated & segregated custody, which differs from collective storage arrangements in that, when holdings are reclaimed, clients receive back their original goods instead of just an equivalent product. This advantage is effected by the (purely internal) registration of bar and seal numbers in the client's name.

OrSuisse high-security facilities located in Switzerland or, alternatively, in Singapore, are exclusively privately managed. All processing arrangements are entirely independently of all banking systems and include full insurance cover for your stored precious metals. International clients can also access domestic warehouses for convenient storage of their gold investment products. Investors who purchase white metals can choose to store them in a bonded warehouse, an arrangement which facilitates the VAT-free purchase of silver, platinum and palladium bullion products.

How OrSuisse negotiable warehouse receipts work

After delivery of their precious metals, clients will then be issued with negotiable warehouse receipts. Up to ten identical products can be entered per warehouse receipt. As well as listing products, the document also guarantees the release of those goods to the owner. OrSuisse negotiable warehouse receipts are structured in such a way that the precious metals they list and describe can also be easily transferred to a new owner. The reverse of the document has practical endorsement fields which are easy to complete.

Thus, gold bars or silver coins, for example, can be traded flexibly without any physical movement of goods having to take place. VAT is only payable on white metals once they actually leave a duty-free warehouse for onward delivery. In addition to simplifying any sale of goods – for example to a precious metal dealer – negotiable warehouse receipts can also be used to secure loans.

OrSuisse negotiable warehouse receipt documents are produced by respected printers of banknotes under the strictest security conditions. They incorporate counterfeit-proof features and can be checked for authenticity via special testing. This means the printing company and its warehouse receipt output conform to the same high standards of security which apply to the process of printing currencies. Consequently, both the listed precious metals and the document’s auxiliary function as a security are afforded the highest possible level of protection.