How to Store Bullion

How to Store Gold & Silver

If you own physical precious metals, then the importance of proper storage cannot be stressed enough. When it comes to safely storing your recently purchased gold or silver, you have three main options:

  • You can arrange to take personal possession

  • You can deposit the bullion at a third party insured vault

  • You can store it in a bank's safe deposit box

Take note that each option comes with its own set of advantages and limitations. Therefore, you need to weigh the pros and cons and decide if one, two or all three alternatives are suitable for your individual case. Let's elaborate.

Safe deposit boxes in banks

Regardless of whether it's diamonds, jewelry or precious metals, banks are what many people think of when it comes to storing valuables. Although the banks don’t impose limitations regarding what you can stow in the safe deposit boxes, take note that you will have to pay a monthly fee for storage.

Make sure to do your homework and select your bank carefully. After all, let's not forget that a bank is as trustworthy and secure as the employees who have access to your safe deposit box.

Third-party vaults

In case you intend to purchase a relatively large amount of precious metals and storing it at the bank isn't an option, then consider a third-party vault. In exchange for a small monthly fee, you can store your gold or silver inside privately owned vaults. Needless to say that you should research the storage services well before you trust them with your assets.

Safes

If you're not buying a sizeable amount of bullion, then you can purchase a safe and keep the bullion in your home. Not only are safes capable of protecting your gold or silver from thieves, but it can also safeguard the precious metals from water, fire, and damage from natural disasters. While safes are overall effective for small quantities of precious metals, keep in mind the following:

  • The less people know you have a safe, the better it is

  • The safe is most effective when planted in the ground (screw it to the floor or wall)

  • Be creative when hiding the gold or silver

  • Remember that installing an alarm system could draw attention to your home

  • You get what you paid for, so stay away from cheap safes

An equally reliable alternative to safes are the secret storage options. From hidden compartments in your flooring and secret bookcases to burying the gold in your back yard, selecting a suitable storage location is only limited by your imagination. You can purchase the special supplies and accessories for protecting your bullion's condition before you'll store it in your secret compartments. 

A better option to store your bullion: IRA custodian

If you're a US citizen, then you have the option to store your bullion with an IRA custodian. While all precious metals are accepted for the IRA – Roth, SEP, self-directed or simple – you need to make sure you can include gold or silver in your Individual Retirement Account. By diversifying your savings mix, you will be offsetting potential losses resulting from stock drops and market turmoil.