Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

Where Am I Supposed To Store All This Gold and Silver

IMG Auteur
Published : January 30th, 2013
1305 words - Reading time : 3 - 5 minutes
( 15 votes, 4.9/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

As a metals broker I am always asked about storage. I have rather strong feelings about this topic and I always advise people the following:


1. Always store outside of the financial system. This means no ETF’s (Even though they are easy you should exercise caution & read the prospectus and zoom in on the custody section – if you can stay awake long enough to read it). Also this means no bank safe deposit box storage. Safe deposit boxes are the worst of both worlds. They ARE NOT insured by the bank but yet they are subject to banking regulations. It also means no commodities contracts held by financial firms like MF Global. (Jon Corzine seemed like such a nice fellow before he got into trouble betting house money and hypothecated private accounts to cover his losses.)


2. Take possession if at all possible. Sure it can be stolen, so just like anything else you must take precautions. You are an adult after all.


3. If for some reason you feel uncomfortable storing yourself or storing all of your metals yourself then look for a non-bank storage facility. Preferably a storage facility or vaulting service that is insured against loss. This will cost a bit more than a private deposit box facility but you will be insured against theft. Also make sure that your metal is in “segregated” storage as opposed to “pooled” storage. You want to make sure that your exact metal will be returned to you whenever you are ready. Visit the depository and see exactly what is involved to deposit metals and more importantly; what is involved to withdraw those same metals.


Let’s talk about taking possession first. Just how much room will you need?



A box of 500- 1 oz silver eagles is about the size of a big shoe box or about 9” x 15” – 6” tall. A box is worth about $17,000 more or less. So if you want to store $100,000 in silver you will need a space about the size of 6 large shoeboxes. Large 100 oz silver bars are a bit more compact and stack much easier in a smaller space. 90% silver is a bit more bulky and doesn’t stack well at all in bulk bags. Gold on the other hand is much more portable. Just 60-1 oz gold coins are a bit over $100,000 USD and do not take up much room at all. They could easily fit inside the cardboard tube of a roll of paper towels.



That same $100,000 of silver (or 6 – 500 coin boxes of silver eagles) will weigh about 206 pounds. The same $100,000 of gold (60-1 oz coins) will weigh a little over 4 pounds. A million dollars in gold would only weigh 40 pounds or so and could be easily carried off by one person without much effort. A million dollars in silver would weigh 2,060 and would require quite a bit of effort and a truck to carry it all away.


So where to put all this? For centuries people have worried about how to store their wealth. Ask someone who lived through the great depression about hiding wealth. If you can find someone in their nineties that can remember they will tell you that most people didn’t trust banks and hid their money around the house. The last 3 or so generations have always trusted the banking system and have never given much thought to holding their wealth. Over the course of history it is more common than you may think to store your own wealth.



Just visit any old European city, affluent sections of central or south America or even the French Quarter in New Orleans or old Charleston and you will start to notice something about the architecture. Most of the homes are built like a fortress. They have very nice interior courtyards but also have walled fronts with heavy doors and heavy shutters on the street windows. In some locations it was common to set beer bottles in mortar along the top of the masonry outer wall and then break off the tops (sort of a cheap home-made razor wire). During normal times the heavy main door to the courtyard and heavy window shutters were open and things looked fairly normal but at night or in times of trouble these places could lock up fairly secure. The modern suburban home is much harder to defend and usually depends on a security system to notify the local police. While the modern home in the US is not as secure as some there is certainly no reason you cannot keep some of your wealth at home if you so chose.


The first layer of security is secrecy. If no one knows there are valuables in your home then there is no reason for someone to come and search for them. Everyone has seen the pirate movie where after the loot is buried the head pirate kills everyone and then buries all of them along with the treasure. I would not recommend this technique but the secrecy involved has merit. You can hide small amounts of gold most anywhere such as: within steel fence posts, buried in the garden or in the yard, in hollowed out books, inside frozen food in the freezer, within the wall space behind dummy electrical receptacles. The list is endless and can be as varied as your imagination. If you do hide your metals you should probably tell someone in case something happens to you just make sure it is someone you trust. Another consideration is what pick-pockets call a “tell”. If you hide money on your person in a secret place most people routinely give themselves away by constantly checking to make sure it is still there. The first thief simply bumps into someone innocently and the victim immediately touches his secret hiding place to make sure the valuables are still safe. The second theif knows exactly where to lift the valuables a bit later. If you bury or hide your metals don’t go check on them routinely or you will simply give away your hiding place! Sounds very simple in theory but most people just can’t stay away.


The next layer of security is a safe itself. If the safe can be hidden then all the better. If the safe can be locked behind a closet door or a false wall then it will have to be found before it can be attacked. If you are interested in purchasing a safe be certain to read my article on “A Guide to Buying a Safe”. It will tell you more than you ever wanted to know about safes and safe ratings.


Finally if you are interested in private storage there are several options. There are private non-bank companies that rent private safe deposit boxes in the US as well as several others around the world. Give us a call if you are interested and I will tell you about all that we have visited.


Finally there are private depositories that store your metals in a segregated and insured manner. These are more expensive but your metals are insured. Just contact us and we will be happy to tell you about all these depositories that we are familiar with as well.


Buying precious metals is just the first step. Deciding where to keep them is quite another decision. However, don’t let the issue of storage scare you away. Doing nothing and keep depreciating currency in a bank that pays little of no interest means you are already having your wealth stolen a little at a time day after day.


Larry LaBorde,


Larry sells precious metals at the Silver Trading Company, LLC. Visit us at www.silvertrading.net . Worried about storage issues? Ask us and maybe we can help.


 

 

Companies Mentionned : Fortress | Metals X |
<< Previous article
Rate :Average :4.9 (15 votes)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Evolution of YouTube: Will it Su...
17:23prljr
It all depends on how much control the j-mafia will buy into like any other enterprise that can be purchased. Makes it easier if you can print your...
North Korea Threatens White Hous...
17:19prljr
The president said the hack on the Hollywood studio was not an act of war but was “very costly”, To whom is it costly? Not having t...
Lessons Learned from the Suisse ...
16:47sneezy67
Hello Switzerland....goodbye Switzerland :: Hello USA...goodbye USA :: Hello financial elite...you have had your way for 100's of years...kiss my ...
Sick Market Moves While Gold Rem...
16:27sneezy67
Oh..... the agony and many pains it must be as a financial analyst (prognosticator ?)
Chinese Copper Elephant
21 Decovertheedge
If some of the central African countries, such as Nigeria, get their politico-economic acts together, then increased demand for base metals, especi...
41 Facts about Central Banks no ...
20 Decprljr
Common sense and logic dictate that if this was taught in schools it would not exist as it has these past 100 yrs. The monetary system is a CON a L...
41 Facts about Central Banks no ...
19 Decsamking73
I'm not sure that much was taught about the central banking system back when I was in school...25 + years ago. At least not the important parts.
Gold & Silver Market Morning
19 Decend
If you trade XAU/RUB and have bought XAU using RUB, you should have closed your position as he advised. Then you should have switched, buying gold ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.