The Dos and Don’ts of Gold Storage
A massive concern shared by most precious metal investors and owners these days is effective and safe gold storage. Those who decide to store their silver or gold at home, usually have the following goals in mind:
- They want the gold to be completely invulnerable to destruction, theft and loss
- They want their precious metals readily accessible and available to themselves or their heirs
One may think that achieving these objectives can be quite difficult, but it is indeed possible to balance these goals with a proper home storage strategy. Mentioned below are some home handy home storage tips worth considering.
The Dos of Silver and Gold Storage at Home
First off, it would be best to install a high quality, water and fireproof safe. Secondly, you must think about where you plan to store the save. Ideally, the location should be concealed or non-obvious. Bolting or anchoring your safe can greatly reduce the chances of theft.
You must consider telling a close family member or friend about your possessions and where you stored them. This is to make sure they can access your stuff in case something bad were to happen to you. It goes without saying that the person you choose should be trustworthy and be aware of value of confidentiality in regards to sensitive information.
While one may think that it is overkill, but keeping a decoy safe in obvious locations can be a fantastic idea. Make sure that the decoy safe is not completely empty, as it could arouse suspicion. Instead, consider keeping low value items in that safe, like fake jewelry or small amounts of cash. This could be enough to convince thieves that they found your belongings.
It would be ideal to track your asset inventory on a piece of paper or spreadsheet. This is especially important if you diversified your precious metal investments. Recording the quantity count and purchase date should never be left to the memory. Doing so will make sure you have a reliable document to reference in case something does go missing.
Now, let us talk about some other things worth considering to ensure you can secure your precious metals:
Be Aware of the Law
If you buy for a self directed IRA, you will have limited options when it comes to storage. According to the IRS, you cannot keep precious metals like gold at home when they are your IRAs part. Similar to standard monetary IRA deposits, the precious metals that you possess must be controlled for taxing distributions and tracking purposes.
There are plenty of independent storage companies that can store your precious metals safely and securely. They work with IRA custodians and precious metal brokers for making sure the process to store and ship your investments is hassle free. Most of these companies offer or include insurance with their storage plan.
Learn About the Different Storage Types
There are two main storage space types:
Allocated: In this type of storage, your deposits will be under your name. However, they may be kept away from the other deposits. What’s more, every item on allocated deposits is on record; however, there is a chance that physical assets could get mixed with other depositor’s holdings. Because of this process, the time required for withdrawing assets increases and causes people to think that their assets are lost or misplaced.
Commingled: In this storage option, your metals are kept with other people’s belongings. However, everyone’s metal is physically segregated or separated.
Make Sure You Have Insurance
When storing non-IRA precious metals in your house, there is a chance that your homeowner insurance doesn’t cover things like particular precious metals or collectible coins. What’s more, there are plenty of policies that have limit caps, which can be very low, especially as far as gold is concerned.
It is also worth keeping in mind that the bank does not cover people using safety deposit boxes to store their items. Neither does the FDIC nor do banks insure items kept inside safety deposit boxes. While you can buy insurance for your precious metals, but company reputations and rates can vary greatly.
Do Some Research Regarding Storage Facilities
When searching for a precious metal storage company, you must perform thorough research prior to signing any type of agreement. More often than not, your IRA custodian or precious metal broker will offer you a list of reliable gold storage companies they collaborate with frequently.
While their recommendations can come in quite handy for you and possibly streamline your shipment and storage process, there are no rules that require you to use the list of vendors they recommend.
The Don’ts of Storing Your Precious Metals at Home
The last thing you should do is advertise that you have gold stored in your home. Information like this should only be shared on a need to know basis. In some cases, however, it can be helpful for a friend or family member to know where you kept your gold in case you aren’t around. You can also include relevant info with your estate and will documents.
Also, avoid storing your entire precious metal collection in just one place. To simplify things, avoid storing all of your eggs in a single basket. In case your home does not have enough room for more than one safe, storing your assets inside a safety deposit box would be ideal.
While there are a few risks associated with storing valuable items at home, you can keep them safe with proper planning. So, don’t let the element of robbery or thievery deter you from investing in precious metals. Remember, there is risk involved in every aspect of life and it is the same with investing. Therefore, the best course of action would be to properly balance your risks.
With just a little bit of forethought and creativity, you can safely secure your silver and gold assets and use them whenever you please. Here are some other things you should refrain from when planning to store gold:
Do not bury it in Your Backyard
Believe it or not, plenty of investors tend to hide their gold assets in their backyard. While this may seem like a viable option at first, it is worth keeping in mind that this storage option does not have any security or insurance.
Don’t Advertise
The last thing you should do is advertise that you have gold or other precious metals stored in your home. If you are giving serious thought to home storage, keep in mind that there are certain risks involved. Depending on how your broker ships your assets, the delivery could alert robbers about the valuables stored in your home.
Of course, this greatly increases chances of theft and raises concerns for your family’s safety. You may also put yourself at risk by getting a safe installed or delivered to your place as it could tip thieves off to the presence of these assets.
For a large period, the safety deposit boxes used in banks have been the go to choice for people who want to store valuable items like family heirlooms, bonds, birth certificates and whatnot. However, what a lot of people do not realize is that storage boxes are not insured. Plus, there is the matter of being able to access your metals.
For instance, if the bank is not open, you will not be able to access your gold or silver. This can be a massive inconvenience for those who plan to trade gold on the market and want to be able to access them right away. Therefore, no matter which storage company you opt for, make sure that its policies regarding access times are clear so that you know when you can access your gold.
Do Not Forgot to Check Storage Company Reviews
An excellent place to being your research for a reliable gold storage companies is the review section. That said, it is important to look for reviews on other areas besides the main website to get a clear idea about what customers feel. You can even take an extra step and check the storage company’s rating on Better Business Bureau to look for complaints and how the company reacts/responds to them.
Final Thoughts
Deciding the best place for storing your precious metals depends on your particular needs. Those who want to keep their assets within reach and do not trust third parties and banks should consider home storage. Keep in mind, however, that you will need to insure your assets and get protective equipment to protect them from thieves. However, if you know a reliable third party storage company, letting them store your stuff would be a relatively affordable and safe option. Make sure that the company you choose has insured storage and provides easy access to your stuff. At the end of the day, however, the final decision will be yours, so make sure it is the right one.
