In the summer of 1940, Winston Churchill made a remarkable decision.

Nazi forces had swept across Western Europe. France was collapsing. German U-boats were prowling the Atlantic.

England was on the brink of invasion.

And so, quietly, and under extraordinary secrecy, Churchill devised a plan to ship British wealth – over 1,500 tonnes of gold bullion and coins, among others – to Canada.

Financial reserves meant to preserve Britain’s ability to continue funding the war…

even if London itself were lost.

The operation became known as “Operation Fish.”

Under armed convoy, British warships and specially escorted vessels crossed submarine-infested waters carrying thousands of crates of gold and financial assets bound for Canada.

At one point, crews aboard one treasure ship were even issued tropical white uniforms in an effort to confuse German intelligence about where the convoy might actually be headed.

When the shipments finally reached Halifax, armed guards escorted the cargo onto trains headed for Montreal and Ottawa.

Some of the securities were stored three stories beneath Montreal’s Sun Life Building inside a specially constructed underground vault guarded around the clock.

Meanwhile, the gold itself was transferred to vaults beneath the Bank of Canada.

By the end of Operation Fish, billions of dollars’ worth of wealth had been relocated across the Atlantic…

without losing a single gold bar.

It sounds like something out of a spy novel.

But it also highlights a surprisingly practical reality about physical gold ownership:

Once wealth becomes tangible… storage suddenly matters.

After all, physical bullion is different from stocks, ETFs, or brokerage balances.

It doesn’t live on a server…

Nobody can print more of it.

Some investors keep a small amount of bullion at home, tucked inside a quality safe, accessible on a moment’s notice, no third party involved.

But physical gold has weight – both literally and figuratively. A meaningful position introduces questions that a brokerage account never does…

What happens in a fire? A flood? A break-in? Is it insured? If something happens to you, does anyone else even know it’s there?

Others turn to bank safe-deposit boxes, which offer security but surprisingly little legal protection; most aren’t insured by the FDIC, and access depends entirely on the bank’s hours and goodwill.

Private vaulting services have grown significantly for this reason. Facilities purpose-built for precious metals storage, often fully insured, sometimes offshore, with segregated holdings that belong unambiguously to the owner.

And then there’s a third path: professionally managed precious-metals trusts that handle custody entirely on the investor’s behalf.

Less control, but for some investors, that’s the point.

Each structure involves a different set of tradeoffs between accessibility, privacy, insurance, and security.

None is universally right.

It’s part of what Jim Rickards has long argued separates physical precious metals from “paper” exposure through ETFs and brokerage accounts—

Owning gold on paper is one thing…

Owning gold in the world – real, physical gold – is another question entirely.

And it’s one many investors never fully think through… until they have to.

WorthNet partner adviser Rob Villaflor of Sprott Wealth Management – a firm that built its reputation around physical precious metals – has a clear view on this. And it might surprise you…

Sprott’s physical trusts were built on a simple premise: every share is 100% backed by metal held at the Royal Canadian Mint.

Fully allocated. No IOUs. And for investors who want the tangible reassurance of actual bullion, there’s even a redemption feature – Sprott could even arrange for an armored truck to deliver a physical gold bar directly to the investor.

In other words, this isn’t paper gold. It’s physical metal, held professionally.

Which is why Rob is candid about where he comes down on the custody question.

“The decision to hold the actual metal over one of our physical trusts,” he told me, “tends to be a personal preference rather than an investment decision. I’m not aware of any investment advantages of holding physical metal directly.”

That’s a notable thing to hear from someone at a firm synonymous with precious metals. Here’s his reasoning…

Custody fees for physical metal can run higher than many investors expect. Liquidity is more limited. And there’s a tax wrinkle that catches people off guard: physical precious metals held directly are typically taxed at collectibles rates – which can run meaningfully higher than the long-term capital gains rate that applies to trust shares held over a year.

Rob frames all of this through a single concept: friction.

“Custody is another form of friction – cost, taxes, and liquidity,” he said. “Where possible, we try to reduce friction while keeping most, if not all, of the advantages of holding physical precious metals.”

It’s a useful way to think about it; whatever structure you ultimately choose:

1. Owning gold is the first decision…
2. How you hold it is the second – and determines how much of that value actually stays with you over time.

Your answer to No. 2 may be less romantic than a secret vault beneath Montreal.

But if you plan to own physical gold, it’s a question you can’t afford to skip.

P.S. If you’d like to talk through your own precious metals strategy – including how custody and structure fit into your broader portfolio – we may be able to help. WorthNet works with a select group of experienced financial advisers, and Rob Villaflor of Sprott Wealth Management is one of them. If you’re interested in an introduction, you can get started by clicking the button below.

A quick note on how this works: WorthNet may receive compensation if you connect with an adviser through our network. Rob Villaflor and Sprott Wealth Management are familiar with our platform and may compensate us for introductions. We only work with advisers we’d feel comfortable recommending to our own readers – but you deserve to know the arrangement exists.

Robert V. Villaflor

CEO of Sprott Wealth Management

Natural Resource Investment Strategist

Robert V. Villaflor is the CEO of Sprott Wealth Management, where he leads a team of advisors who work with investors seeking exposure to alternative investments and real assets as part of a diversified portfolio approach. Sprott Wealth Management (CRD #139022) is a proud member of the WorthNet partner adviser network.

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Last Revised: September 8, 2026