Last Updated on March 17, 2024 by Ben
Gold storage is one of the most important considerations for any gold investor. Gold can be purchased in many forms, from coins to bars, and it is necessary to know how you want to store it before making a purchase. Gold storage options vary widely, with banks being the first thing people think of when looking for secure storage. Gold investors should consider other solutions like international depositories or private vaulting services instead.
What is Gold Storage?
Gold storage is a simple term for storing physical gold and other precious metals, whether it is a coin or bar form. Precious metals rose dramatically on the market around the first decade of the 2000s. This fact led to an increase in gold and other forms made possible by the IRS ruling allowing a few limited types as assets into Self Directed IRAs. However, unlike stocks that don’t need to be stored, people who buy gold have to have a place to store them.
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Why Do I Need Gold Storage?
There are many reasons to store your precious metals, and the higher value of gold bars and bullion means that a secure location is needed. If you have stocks, ownership can be stored electronically or on paper, but for Gold and other Precious Metals, they must be stored in an area safe from theft with high-security measures taken against robbery.
Those who plan on setting up a Precious Metal IRA also need legal restrictions about how their holdings should be safely stored due to certain laws governing this type of account, which vary by state and considerations related specifically towards one’s country.
Importance of Storage Security
There are many different ways to store your precious metals, but the most important aspect to research is how securely they can be stored. In 2010, $1.6 billion worth of gold and other precious metals were stolen by thieves around the world – a 51% increase from five years before that! This should show you just how crucial it is for investors like yourself who wisely made this investment decision.
There are many options for storing gold bullion, and if you are a first-time investor in precious metals, it is idyllic to take advantage of a few different options when on the hunt for storage.
Advantages of Gold Storage
The biggest advantage of investing in gold is that you can control your wealth and have a secure investment through market fluctuations. When storing gold, be sure to take advantage of various security options available in order to reduce the risk of losing your investment.
A diversified storage option can help your investments stay safe and allow full control over everything in the event that something were to happen. This gives greater flexibility and security when it comes to investing because now there’s less risk on your side.
Gold Storage Costs
Investing in gold can be a great way to make money, but first, you need to determine which storage options are best for you. Different costs come with each option, and this will help guide your decision on what is right for you.
Some storage options are expensive, while others may be affordable. No matter which one you choose to invest in, it is important to shop around and compare prices before making a decision.
Vault Storage Costs
There are two common options when storing gold. One option is to store some in a vault in your home country, and the other is to store it in another country with laws that make it easier to keep gold.
Each vault might have a different fee to store your gold. It depends on the location and how much gold you have.
One of the advantages of using gold vault storage options is that your gold will be fully protected in both a physical and financial sense. Regardless of which storage, it still belongs to you. It is not connected to the business or creditors. It is independently audited, so you know that it is a fair service.
Bank Locker Storage Costs
A bank locker could be the perfect storage option for you if there’s not much physical gold and you want to keep it somewhere away from your property. Take a look at all of the various sizes available, depending on what exactly you’re storing in it, so that you can find one that is just right.
A bank locker storage can be one of the inexpensive options.
One thing to think about when using a bank locker is that you most likely will have to ensure the contents yourself, adding an additional cost on top of your annual fee.
Home Storage Costs
When you look for gold bullion storage, buying a safe is one of the best ways to store your gold at home. The size and security of the safe will determine the price.
An investment in your own home can provide you with peace of mind, as it is something that you know where and are assured of its security.
When you buy a safe to store your gold, try to pay with cash and don’t tell anyone, including friends and family, about the safe. The fewer people that know you are storing gold on your property, the better.
The Dos and Don’ts of Gold Storage
Gold Storage Dos
Do Follow the Law
If purchasing gold on a self-directed IRA, your choices for storage are more limited. The IRS rules mean that you can’t keep gold or other precious metals at home if they are part of your IRA. This is because they need to be under controlled access and also taxed.
The IRS rules say that you cannot keep gold or other precious metals at home. You have to put them in a place where the IRS can track them. If you want to keep your gold or other precious metal, then you have to follow the IRS’s rules. Independent non-bank storage companies have increased in number and popularity as gold, and other precious metals have grown in popularity.
The companies work with brokers and IRA custodians to make shipment and storage of your investments secure, straightforward, and hassle-free. A lot of these companies have insurance available or included in their plans for you.
Do Learn About Storage Types
There are two types of storage space: commingled and allocated.
Commingled – means your metals are being kept with precious metals belonging to others, but each person’s precious metals are stashed physically separated.
Allocated – storage means that your deposit will be under your name but could be stored alongside other deposits. All items on deposit are tracked, but the physical assets may be pooled with similar assets of other depositors. This process slows the withdrawal of assets, which many people worry may lead to their assets being misplaced or lost.
Do Make Sure You are Insured
If you plan on storing non-IRA-purchase precious metals at home, be sure to check the policy with your homeowner’s insurance company. Many institutions have limits on the value of what they are willing to hold, and these limits may be low, such as $1,000. Also, if you store your precious metals in a safety deposit box at the bank, the bank will not protect them. Neither the bank nor FDIC ensures the contents of your safety deposit box. You can buy insurance to protect your gold, but the rates and companies are different.
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Do Research Private Storage Facilities and How They Work With Your Broker
When you are looking for a gold storage company, do not sign any agreement right away. Do the research and find more than one gold storage company before signing anything. Find out which companies your precious metals broker or IRA custodian work with the most often.
While the list of vendors is extensive, you are not required to use only those within their recommended list. They might lack the flexibility that comes with other storage options, like an insured depository. However, they have the advantage of being able to access your gold bullion quickly if necessary.
Gold Storage Don’ts
DON’T Bury It in the Backyard
Some people want to bury their treasure in the backyard, and some brokers have stories of clients who insist on doing just that. This type of storage has no insurance or security, despite many legends surrounding this idea.
DON’T Let People Know You Store Gold at Home
If you are considering home storage, remember that it can put your family’s safety in jeopardy. Depending on the delivery method of your broker, criminals will know exactly where to find all of those valuable items and could break into your house without a second thought.
Safety deposit boxes at banks are the vault of choice for any number of precious items such as birth certificates, bonds, family heirlooms, and much more. A lot of people don’t realize that there is no insurance on storage in these boxes. It is important to have access to your precious metals at any time. If the bank is closed, you cannot get them. This might be an issue because if you trade gold and other precious metals and quickly do that, it could be a problem for you. Furthermore, any private storage company you are considering should have clear policies in place about access times and fees for a withdrawal of your gold.
DON’T Forget to Research What Others Say About Storage Companies
Customer reviews are a good way to learn about gold storage companies. However, you should research reviews on more than one site to get a better idea of what problems there are. Better Business Bureau ratings are a great way to get an idea of how the company responds positively and negatively.
What are the Best Gold Storage Options?
There are a lot of options for storing your gold bars. Some are safer, while others are about convenience. At the end of the day, you have to choose between easy 24/7 access or added security. Whichever one you pick should comply with all regulations and laws surrounding gold investments.
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Here are the best ways to store your gold bars.
Home Storage
When many people think of gold storage, they might imagine burying it in their backyard or storing it in hollowed-out books. But these options provide no added security if a robbery occurs or the house catches on fire.
The best way to keep your gold bars safe is in a secure, fire-resistant safe. This will protect you even if there’s an unfortunate incident at the house, such as a robbery or break-in. You should also make sure that it has anti-theft measures so nobody can steal from you by force.
Pros
- Easy access 24/7
- Completely shun a third-party institution
Cons
- Potential for it to be stolen or damaged.
- This is not an approved way to save for retirement.
Bank Vault or Safety Deposit Box
Keeping your gold bars in a bank deposit box is the perfect way to keep them safe. Although there’s still the risk of someone breaking into your home and stealing them, you’ll be much safer than if they were stored at that location- especially when considering potential burglars might know about those hiding spots.
When you keep your gold in a bank, you will have to pay a monthly fee. But with that fee, only the bank can offer the added security of protecting it from thieves.
Pros
- A safe location with good security to protect your gold.
- Preauthorize family members to access gold in an emergency.
Cons
- The contents of your safe are not insured by the FDIC
- Must pay a monthly fee
- Can only access while the bank is open
Third-Party Storage Firm or Depository
A private depository is similar to a bank deposit box, but there are some key differences. First, people are able to buy gold bars without going through the normal banking system, which many gold bar holders are wary of. Also, you can take advantage of the 24/7 access, which you may not get at your bank.
There are private depositories that are approved by the IRS, while others hold valuable goods. It’s critical to comply with laws surrounding gold investments and make sure you meet the criteria for an IRS-approved depository.
Pros
- 24/7 gold storage access
- Security
Cons
- Potential for robbery
- Not insured
- Must pay a monthly fee to rent a box
Summary
The best way to store your gold and silver is the one that makes you feel comfortable. There are many ways to do this, depending on how many precious metals you own, where you live, and what type of lifestyle you lead. Whether it’s a safety deposit box at your bank or some other storage facility- find out which option suits you best. That’s the only way to keep all your riches safely!