Safety Deposit Boxes In UK Being Closed By ‏HSBC – Not Closing Gold Vaults

Article written by Mark O’Byrne from Goldcore
– Incorrect rumours abound around blogosphere that HSBC is rapidly and quietly closing gold vaults
– HSBC are in fact closing down their safety deposit box facilities in vaults in branches
– Banks internationally closing boxes as not profitable and move to “cashless society”
– Incorrect speculation that HSBC move forcing gold clients to sell bullion
– Speculation understandable given poor communications from HSBC and manipulation of precious metal markets
– Salutary lesson to all – media and blogosphere – to be more rigorous
An incorrect rumour that HSBC is rapidly and quietly closing gold vaults where clients gold bullion was stored and gold in the GLD ETF is stored has been swirling around the internet.
After conversations with key players in the industry including a bullion dealer who used the safety deposit boxes for storage and delivery to clients, we can now confidently say that the speculation was incorrect.
What HSBC is actually doing is closing its safety deposit box facilities some of which are in vaults and strong rooms in branches. The vaults are not specialist gold vaults rather standard vaults or strong rooms which contain safety deposit boxes. These safety deposit boxes hold all sorts of valuables – from legal documents, to family heirlooms, to art works, to jewellery and of course bullion coins and bars.
Availability of safety deposit boxes is in decline in Britain and much of the world. Costs of security, insurance and opportunity to use such facilities in a more profitable manner are driving the closures. Banks in Ireland including the Bank of Ireland claim that the safety deposit boxes are “causing an unacceptable health, safety and security risk in some branches.”
In our brave new  world of the ‘cashless society’, the financial independence and freedom that a safety deposit box confers upon the citizen is frowned upon.
As a consequence citizens are being deprived of the opportunity of having their savings, valuables and wealth stored outside of the increasingly precarious financial system and digital banking system.
The implications of the rumours were significant. Analysts speculated that a precious metals market disruption might be imminent and with it delivery calls by clients who believe they own physical gold in GLD which HSBC most likely could not meet.
Such an event would likely have a dramatic upward effect on the price of gold not to mention a catastrophic effect on the finances of those who believe they actually own physical gold in ETFs. Irish Finance Minister, Michael Noonan, being one recent buyer of the gold ETF.
The misunderstanding regarding HSBC closing its deposit box facilities had led to speculation by people familiar with the underlying dynamics of precious metals markets. HSBC was implicated in a gold price manipulation scandal last year, and has been fined numerous times in the past decade for an array of corrupt practices.
As “the largest COMEX/NYMEX depository”, according to their website, they are viewed by sceptics as having both a capacity and a track record to manipulate precious metals prices.
About Sentinel Vaults
Sentinel Vaults is Ireland’s premier safe deposit box facility. It is the country’s only certified member of the Safety Deposit Association and Ireland’s first and only independent safe deposit box facility inside an original bank vault. Sentinel Vaults is the only safe deposit box facility in Ireland that is certified, registered and accredited. This shows that Sentinel Vaults have passed strict due diligence and compliance to operate as custodians of safekeeping.
The discreet underground facility is located on the prestigious Waterloo Road in Ballsbridge, Dublin 4. Security in the vault has been upgraded to surpass bank standards. They offer peace of mind by providing state-of-the-art, modern security to keep savings, gold, silver, platinum and palladium coins and bars, bitcoin, jewellery, heirlooms, wills, deeds and other sensitive documents safe and secure.

The withdrawal of safekeeping services by banks in Ireland has led to an increasing demand for safe deposit boxes.

Bank of Ireland announced in May of this year that they would no longer store valuable items or important documents in what was called a “phasing out” of their safekeeping service. The bank announced that customers would have 30 days to remove jewellery, heirlooms, wills, title deeds and other items of value. Ulster Bank have also this week confirmed it is to close nine branches around the country.

“The demand for safe deposit boxes has increased by over 55% since the Bank of Ireland announcement, with customers preferring a certified safe deposit box company,” said Sentinel Vaults facility manager, James Dwyer.

The need for secure storage looks set to continue to rise following the latest crime figures released by the Central Statistics Office on Monday. There were 26,317 recorded burglary and related offences in the 12-month period ending in Q1 2014, with aggravated burglary offences rising by 19.5% when compared with the corresponding period ending in 2013.

Solicitors, banks, credit unions and other financial institutions are deeming the storage of valuables and important documents a security risk, leaving private, accredited facilities as the only option for secure safekeeping.

Sentinel Vaults is the only certified, registered and accredited safe deposit box facility in Ireland. This shows that Sentinel Vaults have passed strict due diligence and compliance to operate as custodians of safekeeping. The discreet, underground facility is a former AIB bank vault that has been upgraded using state-of-the-art technology in vault security.

Bank of Ireland has begun instructing their customers that they must remove all legal documents and valuables as the bank has made a decision to phase out their important safe keeping facility.

Many elderly customers are now being given 30 days’ notice to remove valuables from the bank in what it said is to be a ‘phased removal’ of the service.

The service has been provided free of charge at branches throughout the country, and it’s understood that Bank of Ireland no longer wants the insurance and space demands associated with storing large quantities of valuables.

GoldCore and Sentinel Vaults have announced a partnership today which will allow for both the safekeeping of valuables and also the storage, delivery and collection of gold. This is the first time that this can be done from fully insured safety deposit boxes in ultra-secure vaults in a former AIB bank vault in Ballsbridge in Dublin 4.

This new service allows people and companies in Ireland and internationally to store important documents and valuables and take delivery and collect gold coins and bars from ultra-secure vaults

Bank of Ireland have made a decision that the safe keeping facility that it has provided to clients is to be phased out. The bank’s clients have been given a 30 day notice period and told that they must remove all legal documents and other valuables within 30 days.
Bank of Ireland’s action comes as GoldCore and Sentinel Vaults have announced a partnership today which will allow for both the safekeeping of important documents and valuables, and also the storage, delivery and collection of gold. This can now be done for the first time from fully insured safety deposit boxes in ultra-secure vaults in a former AIB bank vault in Ballsbridge in Dublin 4.

“We are delighted to offer both GoldCore clients and Bank of Ireland customers a secure, accredited vault for their peace of mind,” James Dwyer, Facility Manager from Sentinel Vaults said.

“BOI is removing this valuable service from their clients which it has almost certainly offered since the bank’s foundation in 1783, as safekeeping was always an important part of banking. This is a very important service, still used by the elderly today. We are glad to be able to work with Sentinel Vaults in order to help people in this regard,” said GoldCore Research Director, Mark O’Byrne.

“We know from conversations with our clients that many of them store important legal documents such as deeds and wills, not to mention family heirlooms, in the safe in their bank’s branch,” said Dwyer.

“After extensive due diligence of the two newly-launched safe deposit box facilities in Dublin, we have decided to partner with Sentinel Vaults as we are confident that they are Ireland’s premier safe deposit box facility,” O’Byrne said. “We have chosen Sentinel Vaults due to their prestigious location, accreditation, customer protection, type of vault and the convenience they offer clients. The fact that they are the country’s only certified member of the Safety Deposit Association and the only safe deposit box facility in Ireland that is registered and accredited, is important”

“Everybody needs a ‘rainy day fund’ and having some of your valuables, including gold, in a secure safety deposit box is an important part of that strategy,” said O’Byrne.

“This latest move by Bank of Ireland creates an opportunity for us and we are excited about working with GoldCore in order to provide valuable safekeeping services in Ireland,” said Dwyer.

About Sentinel Vaults

Sentinel Vaults is Ireland’s premier safe deposit box facility. It is the country’s only certified member of the Safety Deposit Association and Ireland’s first and only independent safe deposit box facility inside an original bank vault. Sentinel Vaults is the only safe deposit box facility in Ireland that is certified, registered and accredited. This shows that Sentinel Vaults have passed strict due diligence and compliance to operate as custodians of safekeeping.
The discreet underground facility is located on the prestigious Waterloo Road in Ballsbridge, Dublin 4. Security in the vault has been upgraded to surpass bank standards. They offer peace of mind by providing state-of-the-art, modern security to keep savings, gold, silver, platinum and palladium coins and bars, bitcoin, jewellery, heirlooms, wills, deeds and other sensitive documents safe and secure.

About GoldCore

Founded in 2003, GoldCore are Ireland’s longest established and largest precious metal brokers and have nearly 4,000 clients in over 40 countries and with over $205 million in assets under management and storage. GoldCore are experts in the execution and logistics of the highly specialised precious metals market. Gold, silver, platinum and palladium coins and bars are delivered internationally and bullion storage services are provided in London, Zurich, Perth, Hong Kong and Singapore.
GoldCore’s research has been quoted and featured in media internationally – from CNN and CNBC to the Financial Times and Bloomberg. It provides insights into the importance of diversification and the importance of owning precious metals as financial insurance and as part of diversified investment and pension portfolios.

For further information, please contact:

Mark O’Byrne, Research Director GoldCore

t: 01 6325010   e: mark.obyrne@goldcore.com

James Dwyer, Facility Manager of Sentinel Vaults
t:  01 6678370   e: info@sentinelvaults.ie