Bullion is an investment that requires some care to maintain its value. While most of us put our coins and bars in a home safe and forget about them, you can take extra steps to ensure that your investment is protected.
Caring for your Bullion
Most precious metal bullion is shipped in protective packaging. Clear capsules, plastic flips, and assay cards all do an excellent job of protecting the finish of your bullion coins and small bars. It is in your best interest, no matter how tempting, to keep your bullion and coins in their protective packaging.
If you ever touch your bullion, use clean cotton gloves and a light touch. If you have graded items, do not remove them from their containers. Graded items removed from their packaging provided by the grader most often will no longer match their graded score and lose value.
Storing your Bullion
There are many ways investors store bullion, from hands-on approaches like burying it on their property to hands-off methods such as storing it with a professional bullion storage facility. Which method you prefer may depend on your intentions; storing your items at home may suit your needs if you are a dabbler in the market. A secure storage facility will most likely best support your investment goals if you are a large investor.
Storing Bullion at Home
Storing bullion at home requires careful consideration to ensure security and preservation of your investment. If you store your bullion at home, you will need to take measures to mitigate risk such as home fires, theft, or natural disaster.
- Safe or Vault: Invest in a high-quality safe or vault specifically designed for precious metals storage. Look for options with solid construction, pry-resistant features, and fireproofing.
- Location: Place the safe in a discreet and secure location within your home, away from easily accessible areas like the master bedroom or living room.
- Security Measures: Consider additional security measures such as alarms, surveillance cameras, or even a home security system to deter theft.
- Insurance: Ensure your homeowner’s insurance covers the full value of your bullion. Consider additional insurance or a specialized policy for precious metals.
- Diversion Safes: Consider using diversion safes or hiding spots for added security, but ensure they are easily accessible to you while still being discreet.
- Climate Control: Maintain stable temperature and humidity levels to prevent damage to your bullion. Avoid storing in areas prone to extreme temperature fluctuations or high humidity.
- Inventory and Documentation: Keep detailed records of your bullion inventory, including serial numbers, purchase receipts, and certificates of authenticity. This helps in case of loss or theft.
- Discretion: Avoid discussing your bullion holdings openly, especially in public or on social media, to minimize the risk of becoming a target for theft.
- Regular Checks: Periodically inspect your storage setup to ensure everything remains secure and in good condition.
- Legal Compliance: Familiarize yourself with any local regulations or laws regarding the storage of precious metals at home.
Best for: The method is best for those who want anytime access to their precious metals and for those who do not hold a large volume of bullion.
Storing Bullion in a Bank
Storing bullion in a bank can offer peace of mind and security, particularly for those prioritizing protection and accessibility. However, it’s essential to weigh the costs and benefits carefully and ensure that the chosen bank meets your specific needs and preferences. You will also want to consider how much access you want to your bullion.
- Safety Deposit Box: Banks offer safety deposit boxes in various sizes for storing valuable items, including bullion. These boxes are typically located in a secure vault within the bank.
- Security: Bank vaults are equipped with advanced security measures, including surveillance cameras, alarms, and restricted access, providing an elevated level of protection for your bullion.
- Insurance: Items stored in safety deposit boxes are often covered by the bank’s insurance policy, offering additional protection against loss or theft. However, it’s essential to verify the extent of coverage and consider obtaining additional insurance if necessary.
- Accessibility: Safety deposit boxes are accessible during regular banking hours, allowing you to deposit or retrieve your bullion as needed. Some banks may also offer extended access hours or after-hours access for an additional fee.
- Confidentiality: Banks uphold strict confidentiality regarding the contents of safety deposit boxes, ensuring your privacy and the security of your investments.
- Documentation: Keep thorough records of the bullion you store in a safety deposit box, including purchase receipts, serial numbers, and certificates of authenticity. This documentation will be valuable in case of loss or theft.
- Cost: Banks charge a fee for renting a safety deposit box, which varies depending on the box’s size and location. Consider this cost when evaluating the overall expense of storing bullion in a bank.
- Legal Considerations: Understand the terms and conditions of the safety deposit box rental agreement, including any restrictions on the types of items you can store and the bank’s liability in case of loss or damage.
Best for: Storing in a bank is a good choice for moderate investors who want the extra security a bank provides. Additionally, for people who do not need 24-hour access to their bullion.
Storing Bullion in a Secure Facility
Storing bullion in a secure facility is a popular option for investors seeking maximum protection for their precious metals. By storing your bullion in a secure facility, you can mitigate the risk of theft, loss, and damage while enjoying the convenience and peace of mind that comes with professional storage services tailored to the needs of precious metals investors.
- Professional Storage Services: Secure facilities specialize in the storage of precious metals and other valuables. They offer state-of-the-art security measures and specialized storage environments tailored to preserve the integrity of your bullion.
- Security Features: These facilities typically employ a combination of physical security measures such as 24/7 surveillance, armed guards, access control systems, and fortified structures to safeguard your bullion against theft and unauthorized access.
- Insurance Coverage: Reputable secure facilities often provide insurance coverage for the full value of your bullion stored on-site. This insurance offers additional peace of mind in the event of loss, theft, or damage.
- Climate-Controlled Storage: Many secure facilities offer climate-controlled storage environments to protect your bullion from fluctuations in temperature and humidity, which can degrade its quality over time.
- Documentation and Reporting: Secure facilities maintain detailed records of your bullion holdings and transactions, providing you with regular reports and updates on the status of your investment.
- Cost Considerations: Storing bullion in a secure facility incurs storage fees, which vary depending on factors such as the size of your holdings, the level of security required, and the location of the facility. Fees are often charged yearly based on the volume of what is stored.
- Legal Compliance: Ensure that the secure facility you choose complies with all relevant regulations and industry standards for precious metals storage. Verify their licensing, accreditation, and adherence to best practices in security and risk management.
Best for: Large investors who do not need access to their bullion storage. These storage services make it simple for investors to keep an eye on their holds and buy or sell easily.
Services like Citadel, a wholly owned subsidiary of APMEX, provide security provided by the worldwide leader in security, Brinks. Citadel offers an excellent storage option to clients who want security, transparency, accessibility and insurance for their investments.
