An important but lesser-known niche of the global insurance industry is specie insurance. This specialized form of coverage is essentially about protecting high-value, portable items – such as precious metals, gems, securities, cash and even cryptocurrency. Specie coverage can encompass these items in their many forms, whether they’re stationary or in transit. Expedite Re offers their own specialised Surety policy to cover theses risks, along with on most occasions A Rated AM Best Reinsurance. This is particularly important for Gold and similar product being used for trading platforms and or bonds issued on financial exchanges.
Examples of items that can be covered under specie policies include:
Bullion. When people think of bullion, they might envision shiny gold bars in a vault. Bullion technically is a purified form of a precious metal, which can be gold, silver, platinum, palladium or another metal. It is often produced in bars, but bullion also can be in the form of large coins or rounds. With gold, for example, specie insurance can protect this precious metal at all points in its journey: from mined ore to rough form, known as doré bars, to refineries that purify the doré bars according to established standards, to storage in a bullion bank before the bars are transferred to a buyer. A gold bullion bar, typically at least 99% pure and weighing 400 troy ounces — usually called a ‘good delivery bar’ – at the current price of gold is worth more than $500,000. For that reason, bullion is usually stored in high-security vaults and transported in armored vehicles.
Diamonds. Nature’s hardest known substance is also one of the world’s most concentrated objects of value. The price per carat of diamonds varies due to size, clarity, color and other factors. A one-carat cut and polished stone, for example, may fetch more than $5,000 per carat, while a two-carat diamond of the same style and quality might be worth four times as much per carat. Larger diamonds are rarer and therefore more valuable. Diamonds and other gems used in jewelry take journeys similar to that of precious metals, and specie insurance can accompany them along the way from mine to cutter, to grader, to jeweler and eventually to the consumer. An important aspect of the global diamond business is the Kimberley Process, which certifies the origin of rough diamonds to prevent trade in conflict diamonds.
Numismatics. This field spans minted coins, paper currency, medals and related objects. Rare coins can be worth millions, such as the 1933 $20 gold coin known as a Double Eagle. Coins and currency are popular among collectors, and various organizations around the world, include the American Numismatic Society, promote the study of numismatics.