Storing physical gold - how to store physical gold : Bad Credit Advisor

Storing physical gold - how to store physical gold

I was seriously hoping that gold price would go down towards $1,000 per ounce, so I could pick some and then some more. Unfortunately, it went back over $1,110. Markets start trading overseas in about 15 minutes as I am typing, we shall see what sort of action takes place. With that said, we have to discuss how to store physical gold. Yes, your coins and bars. Storing physical gold requires a small investment and generally is not a big deal. But for far too many, it still represents a hassle, and a major one. So it is a very important question. I personally know bunch of people for whom storing physical gold was the very reason not to buy it. Now that you did finally buy some physical gold, or are about to, the question of storing can not be ignored. The gold bullion is quite portable. You can put few tens of ounces in your pockets, walk around and no one will notice. That portability however makes gold coins and bars a lucrative lot for would be thieves, and is precisely the reason, it is so expensive to insure, even with your homeowner policy. So how do you store physical gold? We are giving you 5 options here, with all the benefits and doubts and you decide.

1. Storing physical gold in safe deposit box
The safety deposit box is the first place people think of when they ponder on physical gold storage. Everyone has tendency to think, that this is the best place. While it is quite safe and inexpensive, please understand that
- unlike your checking/saving accounts, your safety deposit box is not insured by FDIC
- your bank can be closed when you want to sell your gold, that what happened on 9/11 when prices shot up, only you could not get your gold
- banks and branches can be closed and accounts transferred to another bank or branch while your safety box can go to yet another location
- costs vary from $25 per year for a small 3" x 5" x 24" box, to $300 for a large 15" x 10" x 24" box
You should certainly put your spouse or someone you trust on the box account.

2. Hidden floor or wall safe
The home safe could be an excellent answer on how to store physical gold question for many. If you are gun owner, then you probably have some sort of a safe already. Storing gold in safe would require a nice, high quality unit with decent fire resistance that should be bolted to the floor. Adding a home security system is also something to contemplate. Safe prices varies quite widely.

3. Storing physical gold in segregated vault storage
Segregated vault storage is considered by gold experts to provide the highest level of security available in the precious metals industry. Gold companies partner with an armored truck and security services provider like Brink. This way has several advantages and is good for the investors with a lot of bullion,
- such segregated vault storage is not part of the banking system and does not fall under the same laws and jurisdiction as the banks, and is open 364 days per year save Christmas day
- your gold counted not once but twice by different auditors under the video surveillance camera, signed sealed and tagged with your name, account number, the contents, and then securely stored in the vault, separately from every one's else gold
- you own the exact same bars and coins that you purchased and will get a certificate of storage that lists them
- your gold will be shipped to your within 48 hours excluding weekends
- you can sell your gold quickly as it doesn't need to be assayed since it is already in the vault system
- quite reasonable fees of around $0.55 per 500 ounces of gold per day amounting for just over $200 per year plus
withdrawal charge of $15 per 500 ounces
To qualify for segregated vault storage you may have to offer at least few hundred ounces of gold to store.

4. How to store physical gold - allocated vault storage
Allocated vault storage offers top notch security as well but it gurantees the number of ounces of gold in a vault that are allocated to you, but not any particular ounces. When you want to sell, the gold is delivered to you in a large bar. Alternatively, you can pay extra for exactly what you want. Thus allocated vault storage can suit investors with large quantities of gold bars who purchased them with the lowest premium, but hardly the way to store gold for someone who has several hundreds coins from Australian Lunar Series or Chinese Pandas.

5. Burying gold in the ground
Do not laugh, this is the most economical and often safest answer on how to store physical gold. And is ideal for investors who live on a farm or own some land out there. As long as there are no hunting dogs around that can smell your gold, and we are kidding only partially. Of course, you can dig a hole in your garden or backyard, just make sure no noisy neighbors are watching you. To store your bullion in ground, you must first pick safe, inconspicuous place which you and the person closest to you know. You should also have some paper trail which can lead your heirs to that gold stash if something happens to you. Second, dig at least 3 feet deep and get an airtight and waterproof container. Some suggest steel or plastic water bottles or PVC pipes that you can get in your hardware store with capped ends. We prefer those green surplus ammunition boxes you can get at you local gun store, gun shows or online for as little as $10. Make sure there is no rust inside or clean it. Put each coin into small plastic bag or use the original coin tubes from mint which you can buy from APMEX for a few dollars. You can also throw some desiccant there. Putting some concrete on the top before covering with earth is not a bad idea either.

So the question of how to store physical gold should not serve as the red light when you consider owning some bullion. While I was finishing this informative post, overseas markets started trading. Spot prices are barely up, $1.20 for ounce of gold and a penny for that of silver.

Tue Feb 2, 2010 04:02PM by Tony | More in Gold Investing | Comments (0)

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