While the modern monetary system has been a standard all over the globe for centuries, some people still prefer investing in gold and silver to use as a rain-day fund instead of filling their savings account.
But buying is only the first step. Among the several challenges presented, the biggest one likely concerns storage. There are several storage options to choose from, including keeping your gold tucked away at home, in a bank or secure with a private dealer like Silver Bullion.
Considered by many as the ultimate backup plan, buying gold has become a popular choice if you are looking to protect your assets.
But what is there to protect them from?
A small percent is afraid of keeping liquid funds due to fear of getting robbed, while others distrust the government.
However, if there’s anything the 2008 financial crisis or Brexit taught us, it’s that the value of money can deflate rapidly.
And while money can be easily printed to manipulate the economy, there’s only so much gold in the world, meaning it is less likely to lose value. This is also one of the main reasons why people choose to invest in gold.
Storing your gold assets
The main challenge those who choose to buy gold face is storage. When you invest in gold, there are three most likely choices. The most obvious one is storing your gold it at the bank, which for many would seem like the easiest and most safe option.
Apart from that, you can store your gold at home or with a third party dealer like Silver Bullion.
Storing at home
While storing your gold at home seems like an unlikely choice in this day and age, alot of investors choose they want to keep their gold close by because it reassures them that their investment is safe and within reach.
Some find a hidden place inside their home to store their gold, while others even bury it in their backyardin a modern spin on old pirate stories. Needless to say, this is by far the most unsafe solution you can come up with.
But no matter how unlikely, keeping your gold close by is still a popular choice. However, it’s important to keep in mind that gold is not liquid meaning that you won’t be carrying gold bars in your pocket expecting to pay bills or buy groceries. Therefore, having it at your disposal does not mean that much.
In order to be able to spend it, you have to visit a dealer and sell your gold coins and bars first. But that might cost some time and money, as the dealer will probably want to ensure the gold content is genuine. This, in turn, means that you cannot simply expect to spend the gold you keep close by.
Storing at a bank
Storing your gold at the bank is secure but it comes with a downside: bank hours. If you need to access your gold, you have to do so during bank hours or wait until the next day. That’s not always an option and not being able to act on the moment is a huge downside.
An alternative to that is renting storage boxes at the bank atpretty affordable prices. A year-round fee is anything up to $200 for the largest box a bank might have. You can usually find smaller ones for as low $50.
Storing with a private dealer
Finally, if you choose to store your gold with a private dealer, you will have access to your gold at all times. That is a great selling point for these companies. Private dealers also have special, insured bullion vaults.
However, these companies often have limited space, and the available vaults might not be convenient for you. Their storage options and locations depend on the individual dealer, and the best way to know is to ask them directly.
If storing with a private dealer, investors should always make sure that their assets are stored under an account or sub-account with their name. In the case the private dealership goes bankrupt, this will help determine who owns what when their assets are liquidated.
The fees for storing gold at a private dealer range from 0.33 percent to 1.25 percent of the assets stored, depending on the depository. And we can agree that this is a pretty low price to pay for a peace of mind.