How to Store and Protect Physical Precious Metals
Options for Storing Precious Metals
Imagine transforming your investment portfolio with the timeless allure of gold, silver, platinum, and copper. Diving into the world of physical precious metals doesn’t just diversify your investments; it anchors them with a tangible sense of security and history. But once you’ve acquired these gleaming treasures, the question arises: How do you store and protect physical precious metals? From the comfort of your home to the security of bank vaults, let’s explore the best ways to protect your shiny assets.
Section 1: Navigating the Risks of Home Storage
If you have a hidden vault in a wall at home, or a hidden room that is undetectable and contains a high-security level vault, then that is the best way to store gold and silver at home. Your collection should be in an area free of high humidity and alternating temperatures. Once you place your precious metals inside the vault, avoid sharing details of your collection to anyone, other than your spouse.
Word spreads once you tell someone outside the immediate family about your investments, whether it is precious metals, jewelry, or collectibles of one sort or another. Don’t tell your children about the collection because they may brag to school friends who, in turn, tell their family members. And those family members may tell others about your collection.
Eventually, a person with nefarious intentions, who hears about what you have, will break into your house to get their hands on what you have stored away. If you are not a person who likes to prepare ahead for any eventuality, you could lose everything. Keep yourself safe, keep your family safe, and keep your collection safe.
Instead, let’s look at other, more secure ways to protect your precious metals as well as how to maintain them periodically, so those coins and bullions stay shiny and in great condition.
Section 2: Options for Storing Precious Metals
Home Storage – Advantages and Disadvantages
If you want to store your investments at home, set up a video/audio security system for the house and purchase a sturdy vault large enough that it cannot be hauled away should someone get into your house. Ideally, you can bolt it to your floor or however else you want to secure it. Having that hidden room would also be a great option.
The vault should be fireproof and waterproof with multiple locking mechanisms. With technology today, you can even buy one that only opens when you access a biometric mechanism, such as your fingerprint or through an eye scan. If you buy a large enough vault, you can store other things inside, like valuable jewelry, and other collections.
Keep everything separated from each other and covered with lint-free cloths or in small bags. Do not keep your precious metals in plastic baggies as plastic deteriorates over time and could affect the finish of your precious metals.
The Security System
Video/audio security systems with motion sensors, tied to a service provider with 24/7 monitoring capabilities are the best. Have video screens set up with simultaneous different views where you can check where someone might be accessing your house, such as at a window or sliding glass door.
Your security company calls to check on you when they get the system alarm notice. Then the police are called. If you have the security company’s app on your phone, you can check your home remotely from time to time while you are away.
Bank Safe Deposit Boxes – Advantages and Disadvantages
Deposit boxes are a good alternative to home storage but if your collection is fairly large, you will want to put it in the bank’s vault. This protection allows you to sleep well at night. But here are a few things to consider.
- You only have banking hours in order to access your collection,
- Find out what type of insurance is available to cover theft and other issues,
- In the past few years, a number of banks have closed without notice, so check out what their current standing is, before depositing your collection,
- Will your insurance cover it if there is no insurance at the bank, and
- What kind of insurance standard is required (along with pricing) to store your collection at home instead.
Secure Bank Vault Storage
The same questions apply here to using the bank vault for storage, although one problem you will find is that you cannot easily access a vault like you can a safety deposit box. If you have a large collection, consider splitting it up between the home vault, a safety deposit box, and the bank vault. One thing you should know, however, about storage in a bank vault or safety deposit box, is the Federal Deposit Insurance Corporation does not insure contents like they do your bank accounts.
Regular Storage Facilities
Never, ever consider storing your precious metals at a third-party regular storage facility unless you are in dire straits. If you have to go this route for a short time while moving, choose an indoor climate-controlled storage place. The outer access door should be locked with a coded access system, aside from the locks put on your storage room door.
Always check the ratings concerning any storage facility you use. They should be 4.5/5 and above and have a resident supervisor living on the premises. Only use this option as a last resort and make sure no one is watching who could determine what you are putting in storage.
Be aware that all regular storage facilities require you to declare what you are putting into storage and to also purchase insurance coverage for the unit. It may even be illegal to store bullion as well. Avoid this option altogether. However, there is one more option available to you.
The Precious Metals Depository
Store some of your collection of precious metals at home in your very secure vault. But if you have a large collection, you can deliver it to a designated precious metals depository. This is one of the best options for secure storage for precious metals.
Before doing that, check what the fees will be as they can be steep in some places.
You may also be asked if you want segregated or non-segregated storage, which means that you can store your collection by itself, or you can have it stored in a larger vault where other account holders are storing their collections. If you can afford it, go with the segregated option, even though that is higher.
According to the International Depository Services Group, charges can be “between 0.3 to .65 percent of the total value, including insurance.” Others may charge higher than that, without insurance.
Depositories of this type are very secure and the one you choose, especially for a larger collection, should have a Class III vault, the industry-preferred vault. In other words, it will take a thief about two hours to get into it, maybe longer, if he even gets that close to the vault in the first place.
A number of entities use depositories, including private investors and international bullion banks which means that you would be in good company by going this route to safe guarding your collection of precious metals.
Section 3: Maintaining Your Precious Metals
Handling Precious Metals
If you keep a small collection of precious metals at home so you can look at them, then use clean cotton gloves to handle them. Keep any grime or skin oils off the surfaces of any precious metals you handle. If you do get grime and oils on the surface, wipe off gently with a soft lint-free cloth.
Extra Cleaning Power
The extra step you can take in cleaning your collection is using warm water and a little dish soap. Do not use any caustic fluids to clean precious metals. Keep the surface of your precious metals as pure as possible, allowing your collection to retain its full value. Instead of tap water, use distilled water in case your city or local water source has chemicals that could affect precious metals surfaces.
Home Storage and Viewing
Look into purchasing Mylar capsules, containers, and Mylar coin flips which allows you to view your coins and bullions without you having to touch them at all.
Pros and Cons of Storage Options
| Option | Pros | Cons |
| Easy access for viewing | Subject to fire, flooding, theft |
| Safer than home storage | Access limited to banking hours |
| Safest option of all | Limited access, expensive |
Section 4: The Future of Precious Metals Storage
While there are always new advances happening every day, the multitude of innovations are happening faster and faster than before. A new way could be discovered or invented tomorrow that provides an outstanding way of storing precious metals, or new methods in how they can be handled. Ask your precious metals broker or seller what the latest news is in this industry.
Conclusion
Decide what the best option is for storing your precious metals collection by checking out prices for storage depositories and your local banks. Check on storage and insurance fees and make sure you know when and how you can access your collection. Also ask if you have a way to access information about your collection online too. If you choose to store a small collection at home, make sure that however it is contained, that it is a waterproof, fireproof, and non-humid containment area.
Connect With Us Today
If you want to know more about investing in gold, silver, platinum, and copper coins or bars, contact us at Kzoo Bullion online, or call us at 989-423-1018. We will be happy to help you with what you need.
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