We all know the importance of investing in a wide variety of assets to help grow wealth and spread out risk. And many choose to use physical precious metal bullion – like gold bars or silver coins – to improve the overall diversification of their investment holdings.
But investing in precious metals present a unique challenge. As a physical asset, bullion must be stored safely and securely, and protected from damage, theft, and accidents.
This guide will go over the various strategies that investors can use to protect bullion investments.
Let’s get started.
Disclaimer: This is for informational purposes only and should not be considered financial advice.
There’s no one-size-fits all answer, but the most common choices are to:
We’ll cover each of these options in depth below.
Storing bullion at home usually looks like hiding your holdings in a secure place, and/or installing a safe in your home to hold your bullion items. If you have a small amount of bullion in your investment portfolio, home storage can be a viable option.
This approach has minimal costs, but there will always be some level of risk. Each investor should consider their risk tolerance and whether or not they feel comfortable storing gold at home.
Many companies offer secure bullion storage in offsite facilities. These are like storage units, but they’re specifically set up to securely store gold, silver, and other valuables.
As you would expect, these facilities are very secure, with round-the-clock security, cameras everywhere, and typically insurance coverage, as well. This all comes at a cost, of course, which scales up depending on how much bullion you have to store.
This is a more expensive option, but it’s worth considering for peace of mind and security.
Most banks rent small safe deposit boxes to their customers. You typically must be a member of that bank or credit union, and then pay a monthly or yearly fee to rent a box. Costs are reasonable, often in the range of $10-$20 per month depending on the size.
Safe deposit boxes are stored in the bank vault. And your items are discreet – only you can open the box (though a bank teller will help you carry the box to a private viewing area). Safe deposit boxes may be a nice middle-ground between cost and security.
If you’re investing in precious metals for retirement savings, it’s worth looking into a precious metals IRA program. These accounts are set up similarly to standard Individual Retirement Accounts (IRAs). The difference is that they can hold physical bullion. You can purchase bullion from approved vendors, ship it to a secured storage facility, and then enjoy some of the tax benefits of an IRA account.
If you’re saving for retirement, these accounts can offer significant tax perks. Plus, your gold and silver is stored securely in a dedicated bullion storage facility. Learn more about the Precious Metal IRA program from Bellevue Rare Coins today.
Yes, you can purchase insurance for precious metals investments, but the details vary.
First of all, your standard homeowner’s or renter’s insurance policy likely won’t cover bullion – and if it does, the limit will typically be quite low. However, you can contact your insurance company to discuss adjusting your coverage limits specifically within the coins and precious metal bullion category.
Alternatively, secure vault storage facilities will usually include insurance on the items you deposit. The cost is typically built into the monthly fee, so there’s no additional cost. And while these facilities can be more expensive than home storage, they’re both more secure and easier to insure.
Ultimately, deciding where and how to store your gold and silver is a personal decision. Many investors choose to store bullion in multiple ways to hedge their bets, so to speak.
Another aspect of safety that’s important to consider is where you buy and sell bullion. Working with a trusted bullion dealer is vital in order to avoid fake gold, scams, and the risk of theft.
In the Seattle area, Bellevue Rare Coins is the premier destination for precious metal investors. Whether you’re looking to buy or sell, we offer friendly and discreet service, 4 convenient Seattle-area locations, and the best premiums in the industry. Shop Investment Grade Bullion at Bellevue Rare Coins today.