Unlike other investments, silver and gold are the real thing. They’re physical objects, not just paper. That’s part of their appeal, but it also means you need a storage plan.
Storing Gold & Silver at Home
Home storage is the preferred method of thousands of gold buyers out there. It goes hand in hand with the appeal of buying real gold bars and coins. It’s “real money,” a physical commodity that you can hold in your hand that has durable value. Gold is one of the few physical assets that maintains its value over millennia and investors put their faith in gold when currencies and banks are on the rocks.
There are several concerns you should be aware of if you’re considering home storage.
1. Theft – Get your gold and silver insured if you’re storing it at home. If you only have a silver coin collection, you want to store it somewhere hidden and discreet. Don’t advertise the fact that you have silver or gold at home, though you may want to let at least one person know where you’ve hidden it, in case something should happen to you. Once you have thousands of dollars worth of gold, it’s prudent to invest in a safe, potentially even a wall safe hidden by a false cupboard.
2. Tarnishing – Silver coins should be kept encased in plastic. When you buy silver coins from silver dealers such as Silver Gold Bull, they often come in plastic tubes. Silver tarnishes when exposed and tarnishing can decrease the value of the coins. The same can happen to gold, especially when handled by exposed human hands. The oils that naturally form on skin can quickly tarnish precious metals, particularly those of a high purity like gold coins.
Storing Gold & Silver Off-Site
Major investors who invest tens of thousands or hundreds of thousands of dollars in gold and silver need to investigate storage solutions outside of their home. Investors at this grade buy more gold than silver due to storage costs, but many still like to have exposure to silver bars as it enjoys larger price movements.
1. Banks – The first place you might look to store gold and silver is the bank. They have vaults for storing precious metals, but then you run into the problem of bank bail-ins and precious metal leasing. Your gold is considered a deposit and you become a creditor. The bank can rent out your gold. Should the bank run into the kinds of problems many financial institutions saw in 2008, your deposit could be used to cover the bank’s debts.
2. Allocated Storage – You can visit SilverGoldBull to learn more about allocated storage for silver and gold bars. Allocated storage means that your gold bars and silver bars are stored separate from everyone else’s, not mixed together like in a bank vault. It’s a storage facility, not a bank holding a deposit. It makes a big difference and it’s worth learning more about.
Investing in gold and silver is a low-risk investment strategy to preserve wealth against stock market risks and inflation. Come up with a storage plan that’s appropriate to your level of investment and that minimizes the risks you take on storing precious metals.