As the price of gold nudges an all time high of $1300 an ounce, the risks for firms who handle the metal have increased, which “may leave firms under-insured,” notes Marsh’s London office.
The record high gold bullion prices “mean that firms involved in metal trading, storage and transit are at risk of being under-insured against physical damage or loss.” As a result Marsh announced that it has “developed a new metals insurance product that will provide up to $1 billion of cover.”
The policy provides protection for precious and base metals while in transit or in storage worldwide, plus related plant, machinery and equipment.
Marsh said it is “designed for the specific needs of financial institutions, metals and mining companies, metals traders, refineries, transporters and storage companies.” It covers “all risks of physical loss or damage. This includes employee theft, theft and mysterious disappearance; political risks and advanced loss-of-profit cover is also available.”
Philip Turner, Head of Marsh’s Specie Practice in London, explained: “Any business involved in the transit, storage and trading of precious and base metals are potentially at risk of being under-insured as a result of the recent dramatic increase in wholesale prices.
“While the actual physical amount of metals in transit has not changed dramatically in the past 12 months, values at risk have doubled in some cases. Marsh’s new metals insurance product provides additional peace of mind to anyone connected to the precious and semi-precious metals industry, at a time of high price volatility.”
Source: Marsh
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