There are various ways to invest in gold, including purchasing physical gold bars or coins, EFTs and mutual funds, gold futures, and options among others.
If you choose to invest in physical metals, you will need to find proper storage for your metal. Luckily, the storage doesn’t have to be complicated.
Customers can choose from the few different options available, but they must put a few factors into consideration before settling for a particular one.
These factors may include the charges involved, the level of security required, and ease of access. In this article, we will discuss seven main storage options for precious metals along with their benefits.
Home Storage
Home storage is simple and the least expensive. It works best for investors with smaller amounts of precious metals.
Basically, place your valuables in a hidden and secure spot in your house or property, just like you would do with firearms or cash. Only authorized people should know their whereabouts to prevent theft.
Also, mark your storage area to avoid losing track of it in the long run. Some of the common places where people hide their precious metals include a home safe, a hollow book, burying them in the yard among others. The good thing about this method is that no storage fees are required.
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Safe Deposit Boxes
Safes have been used to store valuables for the longest time in history. Their bulky and cumbersome size make them difficult to move or steal.
To open one, you require either a digital or a combination code that is only known by the owner. Safes are also water and fireproof meaning your valuables will be safe in case of any disaster. You can choose to have one in your home or local bank.
In fact, some home insurance policies provide discounted rates to customers with safes in their homes Nevertheless, bank safes are considered more secure than storing gold in your home.
Banks
Banks are considered among the topmost secure places for keeping valuables. Be it cash, jewelry, title deeds, or precious metals. Unlike home storage which is prone to theft and burglary, banks are always heavily guarded to provide top-level security.
You can rest assured that your possession is well protected both internally and externally. This also relieves customers from all the responsibilities involved in guarding their valuables.
This method is popular among many, but keep in mind that banks do not insure contents or accept liability for loss. The customer must ensure the content is in a bank locker separately.
Vault storage
Vault storage is another awfully secure option for storing your possessions. Its popularity comes from its ease of access and diversification.
A vault allows you to easily buy, sell and store your metal under one roof. The investor also retains full ownership of the metal. Another advantage of vault storage is the ability to store your possessions in different locations.
For instance, you can store some potions in Swiss and the other in London for maximum security. Your precious metals will be more secure if they are spread over different locations.
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Precious Metals Depositories
Depositories are spacious and ideal for storing larger collections. They are also water and moisture-proof to ensure your valuables are safe from harsh environmental conditions.
In addition, precious metals depositaries are heavily guarded, always under constant surveillance to ensure an optimal level of security. The external areas of the facilities are often restricted and all actions within the depository are monitored or recorded.
Customers can rest easy knowing that their possessions are heavily protected. There are two forms of storage offered by precious metals depositories; segregated and communal storage.
Segregated Storage
This type of storage allows customers to store their metals separately from all others. Here, the depository only serves as the custodian while the owner retains ownership of the metal.
Should you wish to retrieve your bullion, you receive precisely the same item you deposited. Nevertheless, be ready to spend more on segregated storage than allocated or unallocated storage. Some consider it the most expensive storage method available.
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Communal Storage
Communal storage differs from segregated storage in that, customers are allowed to put their valuables in a common storage area. You get to share the storage space with other investors.
Although most people tend to feel more secure storing their metals in a private compartment, both communal and segregated storage facilities provide equal levels of security. However, when you request your metals, you will get the same version of what you deposited but not the exact item.
Be advised that not all depositories provide both types of storage, so confirm this info with your service provider before committing to a specific depository. Besides the provision of storage compartments and a high level of security, most depositories offer additional protection through their insurance policies and accounting or auditing services.
Conclusion
Gold is super valuable, so identifying safe storage for your metal is very essential. Keep in mind that, gold bars and coins have no replacement policy, therefore losing them could mean they are gone forever. This makes finding a good storage plan critical.
Home storage is one of the most convenient and cost-effective methods for storing precious metals. Simply find a secure spot on your property and store your valuables.
Banks, safes, and depositories are also convenient but may require storage fees. Do your research and make an informed decision.