Counterparty Risk
Gold IRA Glossary
The possibility that the other party to a financial arrangement fails to meet its obligations, such as a fund, bank, or certificate issuer. The concept is often raised when comparing physical metal, which has no issuer, with paper gold products that depend on an institution standing behind them. In a Gold IRA, custodians and depositories are the parties involved, with holdings recorded in your account and insured in storage.
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