An investment in physical precious metal at GoldRepublic offers a form of wealth insurance and an opportunity to realise good returns; however, it also entails risks and is therefore not suitable for every investor. It is important that you gain a good understanding of the characteristics and risks of investing in physical precious metal before you take an investment decision. In addition, you should also carefully consider whether an investment in physical precious metal is suitable for you in view of your experience, investment horizon, other investments, financial position, risk appetite and other relevant circumstances.

In this section an indication is provided of the risks involved when investing in precious metals with GoldRepublic.

The price development of precious metal depends on the movements in the market. As a result, the value of precious metal can fluctuate and the price of your precious metal can be lower than the price for which you purchased it. If the value of your precious metal drops to zero, you could even lose the value of your whole investment.

The price of the precious metal at the time that you enter an order via your account and issue it to GoldRepublic is not necessarily the price at which the order shall be executed as a delay in the execution can occur. This applies in particular - but not exclusively - to orders that are placed outside of business days.

Worldwide, the value of precious metal is expressed and traded in US dollars. As you purchase your precious metal in euros, the value of your investment is influenced by exchange rate effects. An appreciation of the US dollar versus the euro has a positive effect, whereas a depreciation has a negative effect.

Funds held in your cash account are placed with Rabobank in the Netherlands through Stichting Escrow GoldRepublic. Rabobank is a well-regarded bank with high and stable creditworthiness. Nonetheless, banks can fail or encounter financial difficulties, which may result in the partial or total loss of your funds. In the unfortunate event of Rabobank's bankruptcy, the funds placed with Stichting Escrow GoldRepublic are not covered by the deposit guarantee scheme.

Due to special circumstances it can occur that trading is not possible and as a result physical precious metal cannot be purchased or sold via GoldRepublic. After trading is resumed, the prices can differ from the prices that were issued before the trading interruption.

This is the risk that due to a shortcoming in the working of the procedures of GoldRepublic errors are not observed timely or fraud could even occur. GoldRepublic aims to counter this by means of a sound division of tasks, a well-documented administration organisation and supervision of the compliance with the agreed procedures.

If your password does not remain confidential and is obtained by a third party, you run the risk that a third party can gain access to your account. In principle, this third party can only carry out transaction or transfer your cash to your contra account. As it is not possible to transfer cash to another account. The risk that you run is therefore: a violation of your privacy and the placing of ghost orders. The first matter is a nuisance; but the second matter can also lead to losses due to price differences.

GoldRepublic ensures that your precious metals are adequately insured against theft and damage. Exclusions apply to each insurance policy. If an exclusion occurs as a result of which no insurance payment follows, GoldRepublic is not liable for the damage. The cover that the insurance offers is specified in the insurance policies that are published on the GoldRepublic website.

In exceptional circumstances, GoldRepublic has the right or may be forced to terminate its activities. This situation could also occur when it is no longer possible for GoldRepublic to adequately hedge its risk in connection with the buying and selling of physical precious metal; for tax-technical reasons; if the Custodian no longer acts as custodian and no suitable replacement can be found, if GoldRepublic enters into a moratorium of payments or bankruptcy, etc. In the event that GoldRepublic terminates its activities the precious metal repurchase guarantee by GoldRepublic shall become null and void.

Amendments to the applicable laws and regulations can be implemented, government measures can be announced or new interpretations of the supervisor of investments can be published that can have consequences for the business operations of GoldRepublic and can also lead to an increase of the rates for buying and selling transactions via GoldRepublic.