Delaware Depository Service Company (DDSC) is a Delaware-based precious metal storage service providing vaulting and shipping services for individual investors, companies, and financial institutions worldwide. Their customers include investors, banks, brokerage firms, refiners, and major precious metal and coin dealers.
DDSC has been approved by the Commodity Futures Trading Commission as a licensed depository for silver, platinum and palladium. By basing their services in Delaware, DDSC is able to help investors avoid paying sales tax by having their coin and bullion purchases shipped directly into storage.
History and Services
Delaware Depository Service was founded in 1999 to offer a complete array of bullion and coin custody, shipping, and account administration services. DDSC is the largest American precious metal depository outside of New York City. The items commonly stored by Delaware Depository include bags of 40% and 90% junk silver coinage, platinum and palladium coins and bullion, and gold and silver bars of up to 1,000 ounces.
Precious metals are stored in the company’s high-security vaults in Wilmington, Delaware. The vaults are equipped with time locks and automatic re-locking devices to restrict and regulate access. Metal detectors monitor movement from high security areas. The entire facility is monitored by alarms and other security devices 24/7, with state-of-the-art digital recording of all activity in and around the facility.
Assets stored with DDSC are fully insured by a $1 Billion “all-risk” policy underwritten by Lloyd’s of London to cover all physical loss and/or damage. They are considered “in custody,” not a consignment, deposit, or asset of DDSC. All precious metal assets are maintained in customer-specific custody accounts, off of DDSC’s balance sheet.
Storage Options and Fees
DDSC offers both segregated storage and non-segregated storage (in which your precious metal assets may be commingled with the precious metals owned by other DDSC customers). Note that bullion may be held in either type of storage, while certified coins may only be held in segregated storage.
Other storage options designed to meet the needs of the depository’s customers include collateral custody for those using precious metal as collateral for a loan. DDSC also offers transaction settlement assistance, in which the company serves as a third party to facilitate a precious metal transaction.
Charges for segregated storage are determined annually, at 1.50% (150 basis points) of the total market value of the precious metals stored in the account. Charges for non-segregated storage are 0.75% (75 basis points) per year. These fees are annual rates, which are billed semi-annually. There is a minimum fee of $25.00 per account charged semi-annually. DDSC also charges a $25.00 per package handling fee for shipments, or $0.10 per ounce for personal pick-up. Armored car shipment and customs clearance assistance is also available.
Delaware Depository Service offers safe-day and next-day processing of transactions, along with detailed confirmations of assets received into storage. Optional services include mint year, proof issue, and coin bag count verification. DDSC sends account reports via email at the interval of your choosing for no additional cost through its optional DELdata service. Reports include daily account activity and shipping confirmations.