Gold and Silver storage: The basics

Gold is one of the most valuable metals known to man, and one that has always been prized for its beauty and its usefulness. Gold has also been hoarded for thousands of years, and in the last few hundred years it has revealed itself as one of the most lucrative investment opportunities in the modern world. With that in mind and with so many people getting involved in gold, just what storage options are available to owners of this precious metal?

Old Fashioned Methods

You may think we’re including these for the sake of variety, but there are still many people who store their gold the “old fashioned” way. This can include burying it, but also refers to other archaic and somewhat redundant methods of storing gold. We don’t need to tell you why this is a bad idea and there isn’t enough space in this article to list all of the reasons why you shouldn’t do this, so trust us when we say you should never bury your gold or follow old fashioned techniques of keeping it secure.

Keeping it at Home

This is a method preferred by many first-time investors and by many small time investors. It has its merits, namely the fact that you get to look and feel your gold on a regular basis. However, this is not a very safe option at all. Burglaries are common all over the world, and whilst you may think that you are immune, if word gets out that you have a stack of gold in your home, you will certainly not be. Even if it does not, then there is still a much higher chance of losing all of your gold this way than some of the other ways listed here.

Bank/Safety Deposit Boxes

This method will keep your stack very safe, but there are downsides to this. One of the main ones is that insurance can be expensive and limited, and more often than not it is up to you to tell the insurance companies what you have and to pay them the money. Also, in a world of financial uncertainty, many investors are uncomfortable having so much invested in a bank. In Greece and Cyprus there have been issues with banks refusing their own customers withdrawals thanks to their own financial hardships. This even happened in the financial powerhouse that is the UK, with the Northern Rock bank crashing and with many coming close to losing everything.

Private Vaults

This is the best option for many. Like a bank, a vault will keep your gold as secure as it can be, but unlike a bank they will monitor how much goes in and out and they will also provide insurance, covering you whatever happens. They can also help you to distribute your gold if needed, putting it in the vault and taking it out. The security measures in place at these vaults are tight and rigorous, often much more so than at a bank. They also make gold their career, and they know this stuff better than anyone.

Also, with overseas vaults, there is no connection to a bank or a country, so there is no chance of the government stopping you from getting to your gold in times of financial distress. These private vaults are located all over the world, but they are focused in countries such as Hong Kong, Switzerland and Singapore, where you will find the highest concentration of them. Vaults in these countries are also preferred by the majority of investors, regardless of where they are from.

Silver Storage: The Basics

Silver may not have as illustrious of a history as its shinier cousin gold, but this is an equally useful metal and one that also holds a lot of value as an investment opportunity. If you have just started as a silver stacker, or if you are considering getting into this as an investment opportunity and a hobby, then one of the main things that you need to focus on is storage. How you store your stack is more important than what you buy.

In this article we aim to help you with that, looking at that main storage options available to you.

Burying It

Believe it or not, there are still those who think burying silver is a good way of storing it. Not only is this reckless, but silver is also prone to tarnishing, and underground is not the best place to store it. You’re not a pirate hiding your stack from the authorities, so there is no need to bury it in your garden, or anywhere else for that matter.

Your Home

If you make sure that all of your silver bars are kept in air-tight bags (many of which are sold this way) or in some other case, and that your coins are all in air-tight capsules, then you can store small stacks of silver in your home. Good quality silver will keep for a long time without issue and you can also look at it and admire it as much as you want.

However, this stops being a good idea when your stack grows. You need to ensure your silver is safe, and a large stack of silver will be hard to keep hidden. One robbery and you could lose everything, so this is not ideal for investors with large stacks.

Banks/Safety Deposit Boxes

This is a viable option for some, but it is not without its downfalls. One of the main ones is that safety deposit boxes are fairly small, and as silver is relatively cheap and you need a lot of it to have a valuable stack, you could run into some issues. Bigger boxes can be hired, but these cost even more money.

With banks you are also at the mercy of the government, and if they decide to take your silver without telling you, then there is very little you can do about it. You may also encounter insurance issues with a bank, because whilst you can insure your stack, this is left up to you and the bank very rarely make a note of how much silver you have and how much it is worth. They therefore have nowhere to turn if they are robbed and you lose everything.

Private Vault

This is your best option if you have a substantial amount of silver to store. A bullion vault will provide much more security than a bank, and they are also tailored towards precious metal investors, so there will be no issue with size. A private vault can also monitor everything that you have coming in and out. They can arrange for silver to be shipped into the vault or to your home, and they can also insure all of your stack.

Private vaults, unlike banks, are also not government owned and can therefore not exploit your hard-earned investment. They operate under stricter rules and there is no room for them to exploit those rules. If you have a lot of silver to store, and if you want the highest level of security and safety, along with the best peace of mind, then you should opt for a private bullion vault in a country such as Singapore, where the choice is endless.

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