First State Depository, located in Wilmington, Delaware, is a precious metal storage service. Founded by rare coin and bullion experts, they understand the needs and requirements of investors, and strive to offer the best service and lowest fees in the industry.
Services and Taxes
Their services include the storage of rare coins as well as gold, silver, platinum, and palladium coins and bullion. Their clients include individuals, companies, and investment firms. One of the benefits of storing your bullion in this Delaware depository is that any purchases shipped directly there do not incur sales tax.
Nearly any form of physical precious metal can be stored by First State Depository, including gold, silver, platinum, and palladium. The items stored here range from small ingots, popular American Silver Eagle, American Gold Eagle, and other bullion coins, and bars weighing up to 220 pounds.
First State is known for its highly secure storage facility. The building itself is a controlled-entry building, surrounded by fully-monitored security fencing. Security is monitored 24-7 by an off-sitrre security company, and independently scanned with strategically-placed digital cameras.
First State understands that asset safety is critical to all of their depository customers, from an individual seeking a safe place to store their personal investments to a commercial enterprise looking for high-volume storage.
The strong room surrounding the vault is used to store bulk silver such as state quarters, Presidential Dollars, and 90% junk silver bags. The strong room is separately alarmed for maximum security. The gold coins and bullion stored by First State Depository are kept in a vault protected by a 5,600-pound vault door.
The vault is also independently alarmed, and is rated to withstand torches and tools for 120 minutes on all sides. If anything should happen to your investment while it is in the care of First State Depository, it is protected by a $400 million insurance policy by Lloyd’s of London.
Accounts, Fees, and Storage
First State holds your assets in custody. They are never comingled with other investors’ assets. Unlike many other “storage” programs, such as those offered by precious metal dealers, your coins and bullions always remain in your segregated storage account and your legal property at all times. Unlike many other depositories, First State Depository is not a precious metal dealer. They do not buy, sell, or trade inventory.
This depository has several levels of accounts, including from individual, corporate, and foundation/charitable trust/LLC custody plans. They promise the lowest storage rates of any depository in the United States. Storage fees are invoiced semi-annually, in June and December.
These fees are based on the current market value or spot price of all coins held in storage. Annual rates for individual custody accounts are 60 Basis Points (Account Value x .0060) for both coins and bullion. The minimum annual fee per account is $240.
First State also offers specialty service, such as the Collatoral Custody Service, which enables you to pledge your precious metal assets as collateral for a loan. First State also offers IRA and 401K Custody accounts for those investing in precious metals as retirement savings. In addition to precious metal storage, First State Depository also offers armored vehicle pick-up and drop-off of any metals to be stored in the depository.