Before deciding to invest in physical gold, be sure to take the time to consider where that gold will be stored. Proper storage of gold not only preserves the value of your investment, but also ensures that it remains secure while in your possession.
There are three main options for storing physical gold: at home, in a bank safe deposit box, or in a storage vault. Each of these options has its own advantages and disadvantages.
In this guide, we discuss how to store physical gold. We will analyze each of the three main gold storage solutions in detail, including the pros and cons, so that you can make the best decision for your personal needs and protect your assets in the future.
Storing gold at home
Storing your gold at home is one of the simplest options, as it does not require the involvement of third parties. All you need to do is find a secure storage space in your home.
The ease and independence offered by home storage means that you can access your gold whenever you want. At the same time, it means that the sole responsibility for protecting your gold lies in your hands. You must take all possible measures to protect your gold from potential damage and theft.
Below, we outline the advantages and disadvantages of storing gold at home, as well as some things to consider before storing your gold at home.
Advantages of storing gold at home
The benefits of storing gold at home are numerous, including:
Easy access: One of the biggest advantages of keeping your gold bars and coins at home is that you can access them at any time and immediately. Whether it's to check their quality, resell them quickly, or simply admire your collection, it's up to you.
Independence: When you store your gold at home, you don't have to rely on third parties to keep your investments safe. The gold is under your control and care, and you can assess and improve your storage situation whenever you need to.
Affordability: While you may need to invest initially in a high-quality safe and solid insurance, storing gold at home could save you money in the long run by avoiding the fees associated with other storage options.
Control: Storing gold at home gives you the most control over the conditions in which your gold is stored.
Disadvantages of storing gold at home
Despite its many benefits, storing gold at home also has some disadvantages that may make it a less attractive option for some investors. These include:
Higher initial investment: Storing gold at home may require a higher initial investment to purchase a secure vault or safe and obtain adequate insurance coverage.
Security risks: Storing gold at home carries greater security risks, such as theft or accidental damage. This means you must take the time and effort to properly plan for its secure storage.
Risk of loss: It may seem a little far-fetched, but some people have hidden their gold so well that they have been unable to find it again. Be careful not to store your gold in places that are too well hidden, such as inside drywall or buried in the garden.
Things to consider before storing gold at home
The decision to store your gold at home requires careful consideration. Here are some things to consider when deciding to store your gold at home:
Choose the right environment: Make sure you store your gold in a suitable environment, away from moisture and other corrosive agents.
Take out adequate insurance: Gold, jewelry, and other precious metals may not be covered by standard home insurance. Make sure you take out adequate insurance to cover your assets in the event of theft or damage.
Be discreet: It is important to be discreet about who you share your gold holdings with. Only share the location of your gold with one or two trusted family members or friends.
Invest in a high-quality storage solution: Your gold is a valuable asset and should be stored securely. Invest in a good safe, preferably one that is bolted down and fireproof, to protect it from theft, damage, or unauthorized access.
Storing gold in a safe deposit box
In addition to storing gold at home, one of the first places that comes to mind is a safe deposit box, also known as a security box. This involves renting a locked, secure container located inside a bank vault or safe.
As with storing gold at home, keeping it in a safe deposit box has its own advantages and disadvantages. We analyze them below.
Advantages of storing gold in a safe deposit box
Some of the benefits of storing gold coins or bars in a safe deposit box include:
High level of security: Banks are very secure places. Storing your gold in a safe deposit box means it will be under strict security measures, including comprehensive surveillance and controlled access. This gives you peace of mind knowing that your assets are well protected against theft, damage, and loss.
Relatively affordable: Depending on where you live and the banks you are considering, storing gold in a safe deposit box can be a relatively affordable option.
Disadvantages of storing gold in a safe deposit box
There are also some potential disadvantages associated with storing gold in a bank safe deposit box, including:
Limited access: Unlike storing gold at home, keeping it in a safe deposit box means that you will only be able to access it during the bank's business hours. This can be a problem if you need to retrieve your gold in an emergency or outside of business hours.
Bankruptcy risks: While banks are highly respected institutions, they are not immune to bankruptcy. This means that if your bank closes, you may lose access to your precious metals.
No insurance: Banks do not usually insure items stored in their safe deposit boxes, so it is necessary to take out your own insurance for greater security and peace of mind, which is an added cost to consider.
Less control: If you value having control over exactly how your gold is stored and what security measures are taken to protect it, you may not like relying on the infrastructure and policies of an external bank.
Things to consider before storing gold in a safe deposit box
If you are thinking of storing your gold in a safe deposit box, we recommend that you take the time to consider the following:
Choose the right bank: Before handing over your valuable assets, be sure to find a reliable, reputable bank with a solid track record. Most investors will choose their personal bank as their safe deposit box, as they trust it and have experience with it.
Check accessibility: Check when and how easily you can access your investments from the safe deposit box. What are the hours of operation, how quickly can you withdraw your gold, and what are your options in case of an emergency?
Calculate overall costs: While safety deposit boxes may seem more affordable at first, fees can add up over time. It's a good idea to calculate annual fees and compare them to the cost of investing in high-quality home gold storage to see which option best fits your budget.
Gold storage in a storage vault
Storage vaults are high-security facilities designed specifically for storing precious metals such as gold or silver. These vaults are equipped with advanced security measures to keep your assets safe from damage and theft.
As with the two previous gold storage options, keeping your gold in a storage vault has its own unique set of advantages and disadvantages, which we discuss below.
Advantages of storing gold in a storage vault
Some of the benefits of storing your gold in a storage vault include:
Advanced security: Storage vaults use advanced security measures, such as surveillance, armed guards, and state-of-the-art technology. These high-tech security tactics ensure that your gold is safe and secure from theft.
Specialized infrastructure: Most storage vaults are built with a special infrastructure designed to protect precious metals such as gold. They are typically weatherproof and maintain the proper temperature to protect gold from degradation.
Insurance coverage: Many storage vaults offer insurance coverage for additional protection of your assets, which means one less thing to worry about. However, not all storage vaults offer insurance, so be sure to check before making a decision.
Disadvantages of storing gold in a storage vault
Like any other storage method, storing gold in a vault can have some disadvantages, including:
Limited accessibility: Unlike home storage, it is not easy to access gold stored in a vault. Access is restricted to specific operating hours, and in some cases, you may not even be allowed to enter the vault for security reasons. This means you must wait for the gold to be shipped to your home before you can access it.
Lack of control: As with safe deposit box storage, you have no control over the exact conditions of your gold storage. Instead, you rely on a third party to reliably take care of your assets.
High cost: Compared to the other two storage options, storing gold in a vault can be quite expensive.
Things to consider before storing your gold in a vault
Before deciding to store your gold in a vault, consider the following:
Choose a reputable vault: Take the time to research a reputable vault that is known for having advanced security measures and a proven track record.
Read the insurance coverage carefully: If the vault you choose comes with insurance coverage, read the terms carefully to ensure that it protects against all possible losses and damages.
Consider accessibility: Before sending your gold to a vault, check whether it will be accessible once it is stored. Consider the opening hours and whether you will be able to access the vault, especially in emergency situations.
Why is gold storage important?
Gold storage involves much more than simply finding a good place to hide your investments. It is essential for safeguarding your wealth, protecting it against theft or damage, and maintaining its value.
If you are still unsure why gold storage is such an essential consideration, we outline some reasons below.
Maintain its value: Storing your gold properly protects it against risks such as damage or loss. This ensures that it remains a valuable long-term investment, just as you intended.
Protect yourself from economic instability: Investments in gold are a valuable shield against economic uncertainty. Secure storage, especially in your home and independent of third parties, ensures that you can easily access your gold when you need it.
Preserve your wealth: Ultimately, proper gold storage not only protects your own wealth, but also ensures that it is preserved as a valuable asset for future generations.
Protect yourself from damage: Gold is malleable and can be damaged if exposed to air and moisture. Over time, it can lose its shine and corrode. Proper storage ensures that your gold is protected from damage and remains as valuable as the day you purchased it.
Store your gold safely
Whether you have invested in coins, bars, or gold jewelry, the best place to store your gold will depend on your individual needs and circumstances.
If you value easy and immediate access and want to have complete control over how and where your gold is stored, keeping it at home is the best option. This ensures that you are the sole guardian of your gold and protects it against unforeseen circumstances, such as the bankruptcy of your bank.
If you prefer a low-effort storage solution, the most suitable option is to use a third party, such as a safe deposit box or storage vault. This requires minimal thought and allows you to transfer your investment to a third party who can take care of all the security.
By StoneX Bullion