Tips for Storing Gold
Now that you have officially decided to invest in gold, it’s essential to consider the importance of storing your precious metals properly and securely. As an investor, you have undoubtedly spent a substantial amount of time researching the entire process and learning about the optimal ways to make your purchase.
However, once you have chosen this investment option, it’s necessary to become educated about the best, most secure storage options available today. The importance of storage is paramount to owning gold, and some experts suggest that diversifying storage locations and keeping your coins or bullion in multiple places is actually the wisest choice.
n fact, organized investors understand that the storage of gold is not to be taken lightly. It should be determined before you make any purchase, no matter how large or small, as it is a critical step that requires careful and thoughtful preparation.
Today, there are several viable options available for storing gold, including in your own home; in a bank’s safe deposit box; and in a professional vault or depository. It’s necessary to understand the benefits of each of these methods before making a decision.
Below, let's take a closer look at your options to help you determine which choice(s) are ideal for your specific situation and needs.
Home Sweet Home: Storing Gold In Your House
Many investors choose to store their gold somewhere inside their own homes, which requires purchasing a strong, professional-grade safe and having it installed prior to locking any bullion inside. This type of storage is applicable for those with smaller quantities of gold, and more universally desirable than simply hiding it somewhere in the basement, backyard or bedroom.
When selecting home storage, it is also wise to open a designated insurance policy against potential theft and damage. It’s necessary to keep in mind that when storing gold at home, private investors are also more involved in the details of the entire process and should be comfortable with managing the gold’s purchase and transportation as well as arranging for its ultimate safe storage.
Important Consideration for Home Storage:
probably no surprise, but many investment experts believe that if you choose to store gold, silver or anything of significant value inside your home, then you should always buy your safe with cash and learn how to install it yourself. Consider the big picture, and limit who all knows about its existence at your residence.
Also, if you're storing gold in your home, there is another layer of security to consider... your own family. If you live with a spouse, children or relatives, you may (or may not) wish to share information about the safe’s location or contents. Again, consider the big picture and think carefully about who needs to know about the location of your investment.
Take it to the Bank: Store In A Safety Deposit Box
Most experienced investors agree that the bank’s safe deposit box is still one of the safest places to store gold coins or bullion.
Generally speaking, it can offer investors the best of both worlds: you have the confidence of knowing that your precious metal is safely stored in a location outside your home, and you still have the ultimate control over the lock and key. Experts suggest that it is always smart to choose a bank that is situated close to your home, so that you can access the gold relatively quickly when needed, especially in the event of an emergency.
The Downsides of this Storage Option
However, there is a downside and few issues to consider if you decide to go this route. Bank safe deposit boxes are not insured against robbery, and renters are limited to accessing the boxes only during the bank’s operating hours.
Also, if you continue to purchase gold, or acquire larger amounts, it may not be feasible to store higher quantities in a bank. Depending on the bank, fees for safe deposit boxes can range from about $30 to $125 annually. This can certainly add up over time.
Leave it to the Pros: Professionally Vaulted Gold
For the utmost in safety, many seasoned investors prefer to store their gold in professional, high-security vaults. These are known as third-party storage firms, or depositories, and affords owners a true peace of mind regarding the short or long-term storage of their personal gold investments.
This type of storage is practical for those who own high quantities of gold that are not easily stored in home safes or in a bank’s safe deposit box.
With professionally vaulted gold, the providers usually cover the precious metal’s purchase and sale, as well as any transportation logistics and necessary insurance coverage. It’s also convenient, as most depositories can accept gold deliveries any time of day or night, via armored truck or other methods.
When selecting this type of gold storage, owners should do their homework and ask a number of appropriate questions. For example, it’s important to confirm that the bullion will be stored in a private account, and the owners have on-going, continued access via phone or website to their gold. A good example is the Texas Bullion Depository.
A major benefit of this type of storage is access to liquid funds, as owners can usually have their gold liquidated quickly and transferred to their bank account when needed. Depending on the depository and value of the gold, the usual fees for this kind of storage can range from approximately one-third of one-percent – to one and a quarter percent of the estimated value.
Shhhh... Who can keep a secret?
Finally, an often overlooked and potentially complex decision to make about gold storage is the state of your own relationships. It’s a personal choice to determine who you can trust with the location of your gold -- and which individuals in your life should even know about the gold’s existence.
With all of the storage options listed above, it’s important to share the knowledge of your gold only with a trusted friend or family member.
Many seasoned gold investors agree that the rule of thumb is to only tell one person about the bullion, and provide that person with specific instructions regarding how to access your valuables if you become unexpectedly ill or suddenly pass away.
For example, if the gold is stored in your home, be sure they know where the safe is located as well as the combination or where the key is hidden. If it is stored in a bank’s safe deposit box or professional vault, it’s essential to have your trusted friend’s name added to the account as well.
Of course, all these critical details should be carefully considered when you first make your initial purchase of gold.