Investing in precious metals like gold can offer good returns on your investment. These tangible assets are especially popular for their stability in volatile economic conditions. While these commodities offer you various benefits, storing them carefully can be difficult.
Investors should find a solution that allows them to store these precious metals in a safe place. They can keep their investments secure. So, if you are wondering how to store your gold bars, bullion, coins, etc., here is how you can effectively store gold.
Various storage options allow you to keep your gold investment safe and secure. Assets like gold help you in difficult financial conditions, so you must choose the best one for your investments. Below are some ways that you can choose from as per your preference.
Safe Deposit Box
The most common storage option that you can choose is the safe deposit box. The safe deposit box is usually in a locker inside a bank or financial institution. Some banks can handle their customers' assets with complete care, providing you with a safe gold storage option.
Nevertheless, there are a few drawbacks to choosing this gold storage option. Firstly, you can only access the gold during banking hours. It gives you a limited window to access your gold and can become a problem if you urgently need it. You would have to plan early to take out your gold.
Secondly, you won't get coverage for the gold or any other precious metal you store in the bank. It is the owner's responsibility if anything happens to the gold. You would have to go for external insurance, which can be costly.
Furthermore, choosing an insurance provider to cover your precious metals can also become a problem. Most insurance providers don't provide coverage for gold or other precious metal stored in banks. You would also have to bear the expense of renting the safe deposit box.
Vault Storage or Depository
Another option that you can consider for keeping your gold safe is vault storage or depository. These facilities store your gold in a safe place with better protection. They are designed to protect your precious metals since these facilities include 24-hour security and a climate-controlled condition to protect your gold.
The best part of storing gold and valuable commodities in these facilities is that they insure all your items. It saves you from finding insurance coverage for your gold, and you won't have to spend extra money on premiums.
So, it makes it an ideal choice for investors who want to keep their gold and other commodities in a safe storage place, but don’t want to bear the burden of an addition policy. The depositories will either store your valuable metals in a large room or designated location.
The only drawback the depositories have is that they have specific working hours in which you can access gold, similar to safe deposit boxes. Therefore, you won't be able to take your gold any time. Nevertheless, vaults and depositories are a fantastic storage option to keep your gold and other precious items safe.
Private Safes
Many people want to keep their gold and valuable items in their homes. For that, they can buy private safes, which are optimal for keeping your important documents and precious metals safe. This storage option offers a wide range of benefits.
You can ensure your precious metals and other valuable items are away from prying eyes. It also keeps your precious metals and useful things safe in case someone breaks in. The private safe would be unseen, and keep your gold safe.
Most importantly, you can have access to the gold 24/7. You would have peace of mind about the proximity of your precious metals like gold and silver. Many investors tend to hold their golds in bars, coins, etc. They can use private safes to keep the physical gold close to them without getting anyone's attention.
But, the disadvantage of keeping your gold in an at-home safe is that you can’t get insurance coverage for it. Most home insurance policies don't cover loss or damage to valuable assets such as gold. You would have to get a separate insurance policy, which can be expensive.
Nevertheless, most private safes are fire and waterproof, so you won't have to worry about possibly damaging the gold. Also, the safes will be in an easy-to-access location. Moreover, you need to have the codes for the safe, making it impossible to open it without your authorization.
Hidden Places
Though many people prefer to access their gold any time they want, some want to keep their precious metals in hard-to-reach places. Most common ways include burying the gold, putting them in a basement or attic, and placing them under your mattress.
However, these options are not safe, but it also exposes your valuable assets to damage. Exposure to harmful elements in these places can damage precious metals, impacting their value.
The condition and the quality of precious metals matter the most for the certified or graded coin. Any impurities or damages to the metal means you won't get an optimal price for it. Also, there is a chance you might forget after leaving your valuables in different locations or your home.
It makes these precious items vulnerable to theft since anyone can find them. Therefore, these options pose some threats that you need to keep in mind. It poses a substantial danger to your gold investments, and it is best you don't go for this option.
FAQ for Storing Gold and Precious Metals
You might have some questions about storing your gold and precious metals in a safe place. Here are some frequently asked questions.
Where is the best place to store gold and precious metals?
Ideally, you can choose any of the three options to store your precious metals like gold and silver in a safe place: a safe deposit box in a bank, depository/vault storage, and private safes at your home. You can choose an option that fits you most according to your budget and preference.
Though many people choose safe deposit boxes or private safes, value depositories are a much safer and more viable option. The depositories have the sole aim of keeping and protecting your gold. They also provide coverage for your items on their premises in case of theft or natural disaster.
Moreover, there are regular independent checks and audits carried out for these institutions. Furthermore, the depositories have state-of-the-art security to keep your gold secure. Most of the depositories will have the following security measures:
- 24-hour surveillance
- Alarm systems
- Armed security guards
- Biometric scanners
- Blast doors
- Metal detectors
- Private vaults
These security measures make it nearly impossible for any to get their hand on your valuable items in depositories.
Can banks hold gold and silver?
Banks offer you the option to keep your valuable items, including gold, silver, etc., in their facilities. But, you need to note that there are now federal laws for safe deposit boxes.
The drawback of putting precious metals into the safe deposit box is no insurance. Your valuable assets have no financial protection in case of a robbery, natural disaster, or any other scenario. So, investors need to pay an additional price for the insurance coverage, which can be expensive.
How much gold can I keep at home?
There is no limit to the precious metals you can keep in your home. You can keep as much of your gold in your house as you want. However, you need to understand that choosing this storage option can open you to security risks and threats.
Firstly, home insurance coverage does not give you coverage for valuable items like gold and silver kept in your home. Even if they do, it won't be for their overall value. You need to purchase an additional policy to get coverage for these precious items.
An insurance policy for your valuable assets can be expensive and add to your expenses. Also, keeping your gold at home makes it vulnerable to theft. It puts you and your family at risk of someone breaking in if they notice you have a lot of gold at home.
The industry experts and advisors recommend keeping a small quantity of gold at home and the rest in a depository or safe deposit box. By keeping your gold this way, you can access a small amount of the gold and keep the rest in a safe place.
Your Situation Determines the Best Storage Method
We hope you have a clear idea about the storage options available for your home. You can choose the best suitable one according to your budget, preference, etc. Remember to evaluate your situation and the pros and cons of all the storage options to make the right choice.
If you have any queries about keeping your valuable items such as gold in a safe place, then contact the professionals at What Is A Gold IRA. We have years of experience in this industry and can help you find an optimal gold and asset storage option.
