Why Risk Isn’t Just About Price Swings
When people think of risk, they often think of price volatility. But in physical precious metals, custody risk — where and how your metal is stored and recorded — matters too.
Volatility: Gold Is Stable — Until It Isn’t
Gold and silver are generally less volatile than many individual stocks or crypto-assets, but they’re not immune to market swings. Geopolitical shocks, inflation shifts and central bank policy can all move prices — sometimes sharply.
Prices can also stay low for long periods. During the 2008 crisis, gold fell sharply for a time before rising to new highs over the following years — but after its 2011 peak it fell for several years. Past performance is not a reliable guide to the future, and you may get back less than you paid.
Custody: Where and How Your Metals Are Stored Matters
Custody risk is about how your metal is held. If your metal is in a pooled account, mixed with others’ holdings, or not properly recorded, your claim may be weaker in a crisis.
With EONA, your holding is recorded against specific bars with serial numbers, and your metal is recorded separately from EONA’s own assets. It is stored with Loomis, an independent vault operator, in Dubai, and vault stock is subject to independent checks.
Risk Isn't Eliminated — It’s Managed
There’s no such thing as a zero-risk purchase of precious metals. At EONA, we address custody risk by:
- Recording your holding against specific bars (not a general claim)
- Keeping client metal separate from EONA’s own assets
- Using an independent vault operator (Loomis, Dubai)
- Showing your holdings and bar allocations in your account
These steps address custody risk. They do not protect you from falls in the metal price.