Anglo Far-East Custodial Company selected as Precious Metals Agent for new Cayman-regulated physical gold Fund.

GRAND CAYMAN, Cayman Islands, Jan. 23, 2013 /PRNewswire/ – Anglo Far-East Custodial Company (AFECC) has joined Physical Hard Assets Fund SPC and CIBC Bank to launch a new, fully allocated physical gold Fund regulated by the CIMA.

Under the Terms of Agreement, AFECC will provide all background logistics of acquisition, transport, auditing, safe storage, and liquidation of allocated physical gold bars backing the Fund.

The Physical Gold Fund SP was registered with Cayman Island Monetary Authority (CIMA) on October 17, 2012, and is available to sophisticated and institutional investors only. The Fund has been approved for listing on the Cayman Stock Exchange (CSX).

“Increasingly we are seeing demand for regulated physical gold products which are competitively priced yet provide additional robust protections versus systemic risk,” says AFECC’s Chief Market Strategist Alex Stanczyk. “AFECC assists the Fund with vaulting gold outside the banking system, yet it is fully allocated, and the security and metals meet good delivery standards.”

“Due to the Fund’s structure, metal is not held or vaulted by an entity that may have positions in financial markets or OTC Derivative risks,” commented AFECC’s Treasury Director Simon Heapes . “This gives the benefit of guarding the fund against a systemic domino effect in the economy which has become a concern for many investors in recent times. This unique custodial governance system was designed to closely reflect the time-proven system Anglo Far-East developed and has successfully used for nearly two decades now that we refer to as the Chain of Integrity.”

Trident Fund Services is the Fund administrator, Solomon Harris acts as Legal Counsel, Las Bovedas Company (Cayman) Limited is the Investment Advisor, AFE Custodial Company (AFECC) is the Precious Metals Agent, and Grant Thornton and Ernst and Young are the auditors.

Shares in the Fund are offered on the basis of an Offering Memorandum and Supplemental Offering Memorandum approved by the Cayman Stock Exchange (CSX) and filed with Cayman Islands Monetary Authority (CIMA), and the Memorandum and Articles of Association of PHAF.

About Physical Hard Assets Fund SPC

Physical Hard Assets Fund SPC is a Segregated Portfolio Company domiciled in Cayman Islands and regulated by the Cayman Islands Monetary Authority (CIMA). For additional information, go to www.physicalgoldfund.com

About AFE Custodial Company

AFE Custodial Company (AFECC) is part of the Anglo Far-East group of companies and provides logistics support to institutions, funds, and trusts in the market of good delivery gold and silver bullion. AFECC handles the full range of acquisition, storage, and liquidation of good delivery metal on behalf of its clients. For additional information, go towww.anglofareast.com/afecc

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall thereby any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. Nothing in this communication should be construed as investment advice or an investment recommendation.  This communication has not been approved by any authority for any purpose.

Contact:  Alex Stanczyk
Web:  www.anglofareast.com/afecc
Phone:  +1 206 905 9961
Email:  astanczyk@anglofareast.com

 

This is the reason the “Good Delivery” System Exists

Dear friend and client of AFE,

A recent article points out where a small (10 oz) gold bar which had been handled by various dealers “outside” of the Good Delivery system turned out to be full of tungsten.

This is an age old issue (authenticity of the gold or silver), and has existed in the gold business from ancient times as long as humans have used gold as money and an object of value.

One advantage of the “retail market” of small bar and coin is that by taking delivery of a small amount of physical gold and silver it provides you the “ultimate insurance” and removes all counter-parties between yourself and your gold. At AFE, we recommend people do this, up to a point.

Once a comfortable level of physical delivery has been achieved, perhaps the equivalent of 3 months worth of living expenses or what it might cost you to transport your family someplace safe (even another country) it may make sense to start looking at the advantages and disadvantages of personally holding large quantities of gold and silver yourself.

Small bar and coin physical delivery advantages:

1. Removes all counter parties

2. It can be readily accessible in the event of localized currency failure

Personal storage of small bar and coin carries the following disadvantages:

1. It could be fake – even if its from a “reputable” dealer just like the article referenced below

2. You have to provide your own security – if this is a substantial quantity, this could place your home or family at physical risk as your home could become a target for theft

3. You have to provide your own insurance, the problem here is that as the price increases you will not only pay much higher premiums than an institutional grade vault with modern security, but you will have to continually update your policy to add coverage for the increased value of the metal

4. Inconveniences in liquidation. If you have a substantial quantity of metal, is your local coin dealer going to be able to cash you out? Will others be rushing to cash out at the same time?

While small bar and coin makes sense to us, once you reach hundreds of thousands and millions in holdings it may make sense to look at a professional service to assist you and provide you with additional protection.

Advantages of “Good Delivery” through AFE

1. Convenience of purchase and sale – can be handled within 24 hours to buy or sell  your metal holdings

2. Institutional grade vaulting and security OUTSIDE the banking system – our vaults are not owned by banks and therefore not subject to systemic failures in the banking system

3. Institutional grade insurance – our vaults are covered to the full market value of the metal by a Lloyds of London underwriter, regardless of how high the price of the metal goes – this is already paid for for 7 years when you buy with AFE and you pay no additional fees for storage or insurance after your initial purchase

4. Geo-political Diversification – this gets your metal holdings outside the reach of the jurisdiction you live in – we know from experience and not conjecture that there are times when the only thing protecting a client from total loss of wealth is to have some outside the long reach of the jurisdiction they reside in

5. 24 hour global liquidation market – as opposed to small bar and coin dealers, the market for institutional Good Delivery gold is global and extremely deep – having access to all countries, major banks, and the wealthiest investors, there is always a way to liquidate in any quantity – with AFE in particular our refineries are within driving distance of our vaults, and we can liquidate positions through the refineries by-passing all banks and commodities markets if necessary – this provides our clients in particular added benefit as all other providers have to buy and sell through banks

6. The metal that is held in the Good Delivery system only enters the system one way, that is by being refined through a Good Delivery certified refinery. From there, the metal is only handled by Good Delivery security transport, and held within Good Delivery vaults. Any metal taken out of this system and handled by anyone besides a Good Delivery provider is suspect, and may have to be re-refined in order to re-enter the system. This is what guarantees the metal you are actually buying in this system is the real thing, as opposed to small bar and coin, which may have been handled or tampered with.

For more information on Good Delivery, please watch for our September edition of the AFE Global Insider which will be released shortly.

With kind regards,
Your Anglo Far-East Team

**************

MYFOXNY.COM -

In jewelry stores on 47th Street and Fifth Avenue in Manhattan, the important trust between merchants has been violated.  A 10-ounce gold bar costing nearly $18,000 turned out to be a counterfeit.

The bar was filled with tungsten, which weighs nearly the same as gold but costs just over a dollar an ounce.

Ibrahim Fadl bought the bar from a merchant who has sold him real gold before. But he heard counterfeit gold bars were going around, so he drilled into several of his gold bars worth $100,000 and saw gray tungsten — not gold.

What makes it so devious is a real gold bar is purchased with the serial numbers and papers, then it is hollowed out, the gold is sold, the tungsten is put in, then the bar is closed up.  That is a sophisticated operation.

MTB, the Swiss manufacturer of the gold bars, said customers should only buy from a reputable merchant. The problem, he admits, is Ibrahim Fadl is a very reputable merchant.

Raymond Nessim, CEO Manfra, Tordell & Brookes, said he has reported the situation to the FBI and Secret Service.

The Secret Service, which deals with counterfeits, said it is investigating.

In March, gold bars filled with tungsten showed up in England. With New York now hit, it may mean an international ring is involved.

Read more: http://www.myfoxny.com/story/19578206/fake-gold-bars-turn-

Source Article Re. Fake 10 oz Gold Bar

PANAMA, Feb. 10, 2011 /PRNewswire/ — Anglo Far-East Bullion Company is pleased to announce the launch of Anglo Far-East Custodial Company (AFECC). AFECC provides logistics and support services to institutions and funds that wish to source bullion at the core of the industry for private institutional holdings or for gold or silver backed funds and ETF’s.

AFECC draws on several decades of experience and a solid track record of providing physical gold and silver acquisition, transportation, vaulting, and liquidation of “Good Delivery” gold and silver bullion.

About Anglo Far-East Custodial Company

Anglo Far-East Custodial Company (AFECC) is part of the Anglo Far-East group of companies, and provides logistics support to institutions, funds, and trusts in the market of good delivery gold and silver bullion. AFECC handles the full range of acquisition, storage, and liquidation of good delivery gold and silver bullion on behalf of its clients.

Contact:
Alex Stanczyk
Web: www.anglofareast.com
Phone: +1 206 905 9961
Email: astanczyk@anglofareast.com

Article Source

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