When shipping precious metals components, chances are you believe that you are covered by the shipper’s insurance, right? Think again! Unfortunately, most buyers only learn the truth at the worst time – after a high-value shipment disappears. The reality here is that standard carrier insurance doesn’t cover precious metal the way they expected – even if they paid for additional insurance.
Read the Fine Print!
Here’s the wake-up call: precious metals aren’t treated like other cargo. They are treated like cash. Most carriers have maximum liability limits buried in the fine print, that are shockingly low for high-value shipments. Worse yet, their terms will often explicitly exclude bullion and precious metals coverage. In reality, that “extra insurance” you purchased is most likely not covering the actual risk of loss.
Who Really Bears the Risk?
The answer depends on the shipping terms, but it’s important to understand the specifics here. When shipping precious metals, most companies will apply Ex Works (EXW) terms. This means that the risk transfers to the buyer the moment goods leave the supplier’s dock. Once that carrier picks up those carefully packaged components, any loss is on the purchaser, whether domestic or international.
What We Do
As a leading manufacturer of precious metal materials and components, we take great care in doing our part, but buyers must do their part too. For instance, we:
- Mask our shipments, avoiding obvious labeling
- Keep packing lists INSIDE the boxes/containers which are not visible or accessible on the exterior
- Document every shipment using cameras and other methods so we can prove exactly what’s in each package before it leaves our facility
What You Should Do
- For any supplier you work with, please make sure you clearly understand their shipping liability policies. The key questions to ask: at what point does the liability transfer? It’s likely when it leaves their docks, so you’ll need to be prepared.
- Use armored car services and other high-security carriers for high-value shipments.
- Read the carrier’s fine print and make sure you have a full understanding of their liability clauses
- Third party insurance -we strongly recommend you look into precious metals transit insurance that covers precious metals shipping. Again, make sure you fully understand coverage terms and that they fully cover the total value of financial risk associated with each shipment.
The bottom line? When it comes to precious metal shipping, assuming you’re protected is the most expensive mistake you can make. Follow the steps detailed here to help minimize your risk should the unthinkable happen.