How and why you should store your bullion investments in secure depository storage.
Millions of Americans buy gold, silver, and other precious metals as a hedge against stock market downturns or inflation. Such investments are a prudent way to diversify investment portfolios and can help prevent market turbulence from ruining a portfolio. They also fit many Americans’ view of gold and silver as classical sources of wealth.
However, individuals interested in precious metal investing need to know that this form of investing has fundamental differences from other investing approaches. The physical nature of these investments means that they must be treated differently than a simple online dashboard.
Safe, private depositories are one solution to the question of where to store your precious metals. Here are three benefits of this popular storage option:
One important advantage to storing metals in a private depository is security. Some people believe that safety deposit boxes or a home safe are secure places to keep gold or silver. Others believe they can simply place their gold investments in a drawer or bury it in the backyard.
All of these storage options are possible, but they’re significantly less secure. Thousands of homes are broken into every year. In these home invasions, one of the first stops a thief will make is a drawer or small safe that may contain gold or silver.
While bank robberies are rare these days, the possibility still exists. In addition, many places that store gold aren’t insured on their own. Even safety deposit boxes aren’t protected by the Federal Deposit Insurance Corporation (FDIC). Additionally, many of these sources could fail to protect your bullion from catastrophes such as fires, floods, and tornadoes.
A private secure depository, on the other hand, typically does a better job of protecting an individual’s finances. A depository stores your assets in a facility specifically protected from the elements and from possible theft. Most have a vetted, dedicated staff as well as a facility specifically designed to resist possible threats to stored assets.
Most importantly, these depositories also have insurance policies that protect the metals housed within them. These insurance policies give individuals peace of mind in knowing that their metals will be protected no matter what happens to any particular facility. This protection can help investors focus more on their precious metals strategies and move on to other aspects of their diversified portfolio.
Another key benefit of private depositories is transparency. Individuals who have their gold in these depositories can interact with it on a regular basis. Depository companies offer regular updates on the status of their facilities and any upgrades or policies that may affect your assets.
Segregated storage means that an individual’s bars or coins are kept aside from the investments of others. Unscrupulous online companies that allow individuals to trade gold often don’t allow the buyers to physically touch their gold. There’s always the possibility for a scam or false sale. With a private depository, the individual has unfettered access to gold in segregated storage.
You also won’t have to worry about buying fake gold either. Individuals can securely pick up their gold from a depository and have it tested for authenticity by the finest gold appraisers in the world. By using these depositories, you can be sure that their investment is legitimate and in safe hands.
The third advantage of secure private depositories is the cost. Secure private depositories contain thousands of metal investments that belong to many individuals. They’re able to practice economy of scale and thereby greatly reduce the price that each individual has to pay to store their bullion.
Many individuals believe that all they have to do is purchase a safe for their gold, but high quality private safes can be incredibly expensive and cumbersome. They may cost hundreds or thousands of dollars, and may charge an individual even more if he or she forgets their combination. Moreover, all of these payments could end up being a waste if the assets being stored are ever stolen. In addition, it’ll cost prudent investors even more to buy insurance on that asset (if they even can).
With a secure private depository, the customer pays a low flat fee to store their insured gold or silver. There’s also the option to shop around and find different depositories competing with each other to provide the lowest possible price.
Is Bullion Depository Storage Right for You?
If you’re interested in purchasing gold or silver, or you already own bullion and are looking for a better storage alternative, we encourage you to take time to seriously consider where these investments will be stored.