What are the risks of investing in precious metals? There are risks associated with investing in precious metals, just like with other investment products. Below is an overview of the investment risks you run if you purchase gold and/or silver from DKgold.
Like with other investment products, the value of your positions depends on developments in the market. Prices fluctuate continuously and are dependent on macroeconomic conditions. The price of the gold and/or silver you own may be lower at a given moment than it was at the time you bought the precious metal. In other words, there is a chance that your precious metal will decrease in value or that you will lose money.
The currency risk also known as exchange rate risk. This refers to the fluctuations to which the US dollar, the currency in which the price of precious metal is expressed worldwide and in which these investment products are traded, could be subject compared to the euro. Which is the currency in which you make your purchase. The value of your investment may be affected by fluctuations in the exchange rate between these two currencies.
In the event that DKgold or our storage partner goes bankrupt, has no consequences for the gold and/or silver that you have already purchased. That is, after all, your legal ownership and in a situation of bankruptcy you could determine what happens to your positions yourself.
If DKgold sees no other option than to file for bankruptcy, this will only affect orders that have already been placed and paid for, but have not yet been delivered to the safe. You will then be a creditor and you will have a claim in the bankruptcy. To minimize this risk, we strive for a very short delivery period of a few working days.
At DKgold, we attach great importance to complying with relevant legislation. If you invest in gold and/or silver at DKgold, you will also always comply with the applicable legislation.
It may happen that changes in legislation are implemented that affect the value of your positions. You should take into account any changes in legislation and their influence on your investments.
Risks with regard to insurance coverage
The precious metals that you purchase from DKgold are 100% insured. Nevertheless, we reserve the right to make exceptions to this insurance in exceptional situations, for example in the event of natural disasters. The specific situations that are excluded from insurance are described in the terms and conditions.
It may happen that we are unable to deliver an order that you have placed directly from stock. In that case, DKgold will order this for you from one of our partners. In very exceptional cases, the supplier may fail to deliver, causing your gold not to be delivered to the safe. If this occurs, we will contact you.
It may always happen that trading in precious metals becomes impossible. You could think of a ban on trading in gold and/or silver or a lack of deliveries. In these cases, we could do nothing but temporarily suspend the operations of DKgold. If that is the case, you will not be able to buy or sell gold and/or silver with us. Of course, the gold that we have stored for you will still be your property.