Investors and collectors of gold bullion coins often purchase them with the intention of storing them at home, however there are several key points they must keep in mind before making their decision.
First and foremost, safe deposit boxes are only accessible during bank operating hours and do not come under insurance protection from their host institution.
Security
When it comes to protecting gold and silver at home, investing in a safe will provide peace of mind. Thieves should have difficulty breaking into it as well. In addition, additional insurance may also be necessary.
Banks do not typically insure assets stored in safe deposit boxes, according to The Times of London. Instead, liability lies with their owner, who must purchase separate insurance for these items.
If a bank goes out of business, you may not be able to access your gold and other precious metals immediately; additionally, their processes for closing down and transferring ownership could take weeks or more to complete.
Home storage of precious metals can be convenient; however, this has its drawbacks such as limited access (banks are only open certain hours) and theft/burglary risks. Furthermore, homeowner policies often have low limits for valuables coverage.
Insurance
Bank safe deposit boxes are popularly used to store gold bullion bars due to their superior security and low rental costs. But these storage units may come with some significant risks: none are insured according to The New York Times; therefore proving their worth when lost may prove challenging.
Safe deposit box owners must access their boxes during normal bank business hours to gain access to them; additionally, a court order could require them to sell any gold or silver stored therein. An alternative would be depository which typically offers theft, natural disaster and independent audit policies as well as undergoes independent audits and is therefore often the safest solution when it comes to precious metal storage. Although more costly, depository storage may provide greater peace of mind.
Access
Gold and silver are highly prized assets that should be safeguarded against theft. Investors have three storage options to protect their precious metals: at home, bank safe deposit box or professional facility storage. Each method offers unique advantages and disadvantages.
Home storage of gold requires extra security measures, including a safe and insurance. Home-stored gold is vulnerable to wear-and-tear, natural disasters and burglary if left exposed at home.
Banks offer one of the most secure methods for storing gold. Safe deposit boxes typically charge a low monthly fee and offer various levels of protection, such as private vaults, armed security guards and around-the-clock surveillance. However, investors should remember that banks don’t insure contents in safe deposit boxes and investors may require separate insurance to cover their investments. Furthermore, certain banks have set operating hours which require advance notice in order to access safe deposit boxes.
Costs
Safe deposit boxes at banks are often considered the optimal solution for storing precious metals, being both inexpensive and secure. While access may be restricted during bank hours, and coverage may not always be guaranteed, this form of storage could prove useful in protecting valuables for the long term. However, this approach also has certain downsides.
Home storage of gold offers several advantages, including lower annual costs and direct ownership. On the downside, potential theft risk, limited accessibility, and expensive insurance could pose problems.
Storing gold at home can be an attractive option for collectors and investors, but it’s essential to take steps to safeguard it. One method is by disclosing as little information about where your stash resides as possible to lessen chances of theft from others; another approach would be investing in a high-quality safe that is difficult for burglars to break into; finally it’s essential that any precious metals be insured against theft, fire and other risks.
