Once you have begun investing in physical gold, do not overlook the crucial step of storing it correctly. Although robberies are rare, they do happen. You also risk damage due to fire, floods, and other weather emergencies.
Although these scenarios are unlikely, they are still possibilities that should be considered when formulating a plan to protect your physical precious metal investment. Thinking carefully about storage is one of the most important steps you can take to protect your investment.
There are two main options for storing your gold – personal possession, or having it stored by a third party who specializes in storing precious metals. Each method has both benefits and drawbacks that should be carefully considered before investing in bullion and coins.
Storage in a Depository
There are several options for having your gold stored by a third party, including bank safety deposit boxes and depositories. Depositories are facilities designed specifically for the storage of precious metals. These high-security storage vaults are extremely safe, with specially-designed security systems intended to protect your precious metal holdings.
However, storing your gold here incurrs an annual fee that can limit your investment potential. In addition, the gold is kept out of your hands. It may be more difficult to gain access to in an emergency, an important consideration for those buying gold as protection against the possibility of an economic crisis.
Storage At Home
The other option is storing your gold at home. This option requires gold investors to have more safeguards in place to protect their gold. For example, installing security systems, purchasing a home safe, and increasing your homeowners insurance are steps intended to protect your investment from theft.
You’ll also have to think carefully about whether you can sleep soundly knowing that there is a significant amount of gold stored in the house. Some investors simply aren’t comfortable with the idea of having gold stored on their property. Despite these potential downsides and the additional measures needed to protect precious metals stored at home, many investors prefer this method, as it means their gold is easier to access in a crisis situation.
Regardless of whether you choose at-home storage or have your gold stored by someone else, it is a good idea to avoid discussing your investment with anyone other than close family members. Avoid the temptation to take out a gold bar to show off at a party or talk about the gold you own. This is particularly important if you plan to store precious metals on your property – spreading the word that you own gold coins is a good way to make yourself a target for a break-in.
Best Storage Method?
Whether you store your gold at home or with a depository, each alternative has advantages and disadvantages. Each investor must weigh the pros and cons to determine which storage method best suits their needs. By taking the necessary steps to protect your investment, your risk of losing your bullion will be very small.