Home Security Beat

Physical Gold & Silver Storage Options

With the economy in a turmoil, a lot of folks are buying physical gold and silver as a hedge against inflation.  Most of the precious metal gurus will tell you to buy the actual bullion rather than (or in addition to) gold mining stocks, ETFs, etc.  But where do you keep the stuff?

You have a few options.

Safes or Home Vaults

We’ve talked about safes before, and that is an option that makes many people comfortable.  Your gold/silver is in your home where you can get at it when you need it.

It’s important to get a quality safe if you’re going to be storing more than a few trinkets in it.  Make sure the safe is installed in the wall or floor, so it can’t simply be carried out by a couple of burly burglars with furniture-moving straps.  Also get a safe with a good fire rating (gold, in particular, has a low melting point) as house fires are also a danger you want to insure your investment against.

Bank Safe Deposit Boxes

If you don’t have a safe of your own or want to diversify where you’re keeping your precious metals, then you may want to look into safe deposit boxes at the banks.  When we’re talking about gold, however, there are a few caveats.

First off, deposit boxes are not FDIC insured.  If a bank were robbed and your gold stolen, you wouldn’t be gauranteed to be compensated.  Second, if the government ever decided to confiscate gold (which has happened before in American history), you’d be out of luck if your bullion were stored at the bank. Lastly, if there’s ever a run on the bank or a “bank holiday,” you might not be able to access your safe deposit box in a timely manner.

Remote Private Gold Storage Facilities

It’s also possible to find private companies such as Brinks that offer gold storage in secure, guarded facilities.  This is occasionally an option when you order gold or silver over the Internet (instead of having the bullion mailed home, you have it sent off to a secure storage facility that is typically open 7 days a week).

One gold & silver dealer that does this is Michael Maloney, author of Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future. You can check out his gold and silver vault storage fees to get an idea of what is involved with this kind of arrangement.

Popularity: 1% [?]

Tags: precious metals, safes, storage, vaults