Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Need-to-Know Tips for Safeguarding Your Precious Metals

Commodities / Gold and Silver 2016 Aug 25, 2016 - 04:45 PM GMT

By: MoneyMetals

Commodities

Gold and silver investors have strong opinions about third-party storage of metals. Privacy, the lack of counterparty risk, and precious metals’ role as “crisis money” are among the most attractive features of physical bullion. So it is no surprise that many investors are totally committed to storing metals at home or someplace else that is both private and accessible 24/7.

We wholeheartedly agree with that sentiment and always recommend personal possession when it comes to at least some of your metals. However, there are a number of circumstances where third-party storage makes a heck of a lot of sense. Let’s take a look at the most common…


Physical Security and Insurance Coverage are a Top Priority

Some folks live in high-crime neighborhoods and may have experienced a home invasion or burglary. Others may have a large holding where maximum, around-the-clock security is only prudent given the stakes involved.

We even have customers worried about family members with an addiction problem and a history of stealing.

There are ways to improve security when storing at home. However, when it comes to physical security, a professional vaulting service such as Money Metals Depository cannot be matched – not even by banks. The best depositories offer armed guards, Class 3 vaults, multiple perimeters, state-of-the-art electronic security, dual controls, fully segregated storage, and, perhaps most importantly, insurance coverage for your holding.

People with safe deposit boxes at a bank are often surprised to learn the contents of their box are NOT insured. Worse, banks have a history of working with regulators and may well be complicit in any government scheme to declare a bank holiday and “bail-in” or confiscate assets.

Secure storage at a non-bank institution is a far better idea.

Silver Can Be Heavy and it Needs More Space

A monster box of 500 silver American Eagles weighs roughly 40 pounds. That is more weight than some customers want to handle. Some simply can’t.

Silver can also be space intensive. 500-ounce silver boxes are roughly the size of a larger shoe box. The more of them an investor accumulates, the greater the chance the holding will outgrow the space available in their safe. And getting a larger safe isn’t always an option.

Minimize Costs and Transact More Efficiently

Bullion investors are well acquainted with the advantages of holding tangible coins, rounds, and bars. But buying and selling involve transaction costs, including shipping.

Of course, some companies such as Money Metals Exchange ship and insure all orders at no cost. However, when it is time to sell metal, there is going to be some expense involve with the return shipment. Not to mention the time and effort needed to get the metals packaged and mailed.

None of this is a big deal for investors who plan to buy and hold the metal indefinitely. It’s another story for investors who trade more often. Some trade based on the gold-silver ratio and periodically swap one metal for the other. Other investors are buying and selling metal on a structured basis – perhaps weekly or monthly.

Then there are individuals who simply want the lowest possible premiums and prefer exchange-sized gold and silver bars. For these bars, a third-party vault which offers storage locations inside the COMEX system, is essential.

100-ounce gold bars must be shipped via armored truck in order for the shipment to be insured. That can be prohibitively expensive and difficult to arrange. 1,000-ounce silver bars weigh 70 lbs apiece, making them both awkward to handle and very expensive to ship via the Postal Service or UPS.

On top of this cost and hassle will be costs associated with having the bars melted and re-assayed when they are sold. This is a requirement for all bars coming from outside the COMEX chain of custody.

There is no cost to ship and insure when customers buy from Money Metals Exchange and store with Money Metals Depository. The reverse is also true; there is no shipping cost when selling stored metals back to us. And transactions can be completed without hassle or transit delays.

Hold Bullion inside an IRA

More and more people are dumping conventional (paper) securities and transferring funds into self-directed IRAs where they can invest in tangible assets such as bullion. However, IRS rules restrict investors from directly holding the assets. That means finding a depository to store the IRA metals.

Note: A few IRA custodians and metals dealers are promoting “self-storage” or “home storage” IRAs that attempt a clever work around to the third-party storage requirement of the IRS. The scheme requires strict record keeping, significant set-up expenses, and plenty of risk because it has not been fully tested in court. It may be disqualified, leaving people liable for taxes and penalties. Accordingly, we advise great caution and strongly suggest storing with an approved vault instead.

To sum up, people should at least have an “emergency stash” of metal they can access at any time. That does not mean 100% of investors should have 100% of what they own stored at home. There are plenty of cases where a secure storage facility is the way to go.

By Clint Siegner

MoneyMetals.com

Clint Siegner is a Director at Money Metals Exchange, perhaps the nation's fastest-growing dealer of low-premium precious metals coins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon, puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

© 2016 Clint Siegner - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules