Utah has a rich history in mining, refining, and storage of precious metals. Today, Utah stands as a leading center for gold and silver mining with world-class refiners and smelters operating here.
Utah’s new currency law skirts this issue by creating a State-based precious metal legal tender alternative as part of their currency law, potentially helping prevent collapse of local commerce without needing additional nations to intervene.
Why Store Your Gold in a Depository?
Most people who store gold and silver at home do it out of necessity to protect their assets against unexpected expenses, but keeping coins hidden under loose floorboards in your living room or under a coffee can in your mother-in-law’s basement may not be wise as they could become lost, stolen, or damaged in a fire.
Depository storage offers one of the safest and scalable options for protecting precious metals. In addition to physical security, you will gain peace of mind knowing your metals are under constant surveillance as well as protected by insurance coverage.
Indeed, many dealers will only sell to you when your bullion is stored in a depository. Furthermore, such storage will exempt you from state sales taxes on nonlegal tender gold and silver bullion products such as bars, medallions and tokens; though you will still owe federal capital gains taxes when selling precious metals.
Fees and Charges
Many depository services charge a nominal transaction fee every time you transfer precious metals between locations. The exact fee can depend on both your chosen depository and individual needs; some depositories even provide home delivery at an additional cost.
Utah is well known for its gold mining history, including operations in Bingham, Mercur, Goldstrike, East Tintic and Park City districts. Nowadays however, most of Utah’s gold is found in placer deposits.
Proponents of the new law hope it will encourage people to invest their reserve money in gold and silver coins instead of Federal Reserve notes, in an attempt to nullify its monopoly over currency. They believe this could create a reverse Gresham’s Law effect where good (gold and silver coins) drive out bad (Federal Reserve notes).
Security
The best precious metals depositories provide top-of-the-line security measures, such as 24/7 surveillance, armed guards and robust security systems that can withstand physical attacks or natural disasters. A good depository also offers insurance coverage up to a certain limit.
Many individuals choose to store their gold or silver in an attic or hidden location at home, leaving it vulnerable to theft and environmental damage. But this method exposes precious metals to theft as well as environmental risk.
Depository services like United Precious Metals Association (UPMA) provide secure storage of precious metals at reasonable fees and costs, and offer accounts in U.S. minted coins and bars, among others. Membership fees and vaulting costs are low – an economical solution to protect valuable investments safely while offering access whenever needed. Furthermore, delivery options make UPMA an accessible service provider to keep precious metals accessible when you need them most.
Insurance
Due to current economic and political climates, many are turning to precious metals to protect their wealth. If you own significant bullion holdings, depository could be the optimal storage and convenience option; but when selecting one it is important to consider location, security, insurance coverage and reputation before making your selection.
Depositories typically offer insurance policies tailored to protect gold and other precious metals stored with them, as well as optional third-party coverage that can provide added peace of mind.
Depository fees are levied to help cover the costs associated with storing and handling metals, which vary depending on their value, quantity and storage method. Depository fees often depend on both quantity and value; there may also be transaction charges such as insurance premiums that vary based on how much bullion is being stored at once; more costly bullion often attracts higher premiums for coverage as well. Delivery and shipping fees may also incur costs which vary with their value and delivery may incur delivery and shipping charges as well.
