Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How Safe Is Your Physical Gold?

Commodities / Gold and Silver 2011 Mar 03, 2011 - 01:43 AM GMT

By: Jeff_Clark

Commodities

Best Financial Markets Analysis ArticleJeff Clark, BIG GOLD writes: One of my best friends recently discovered, to his shock and dismay, that five one-ounce gold coins had been stolen from his home. I feel especially bad because I had encouraged him to buy some physical metal, giving him some tips and pointing him to the better dealers.

What's especially disconcerting about the theft is that my friend had the coins stored in a safe, hidden from view, securely locked, with the key hidden. He thought his gold was safe, a reasonable assumption given the precautions he'd taken.


But all those measures weren't enough. Based on what he knows, he strongly suspects it was a relative, partly because of this person's background and partly because they were one of few familiar enough with the house to know where the key might be. The police unfortunately don't have enough evidence to make an arrest - fingerprints, for one, couldn't be successfully lifted from the safe.

My friend was in shock for several days. While it didn't represent all the gold he owned, it's not insignificant; with gold at $1,400/ounce, that's seven grand the thief made off with. He's further consternated by how it went down; the robber only took part of his stash, evidently to make it look like his gold hadn't been disturbed. The key had also been put back in its place, and for this reason he can't pinpoint a specific time period the coins were stolen.

The cost to him has been more than monetary; he loved his bullion coins and had collected at least one from almost every country that produces them. He told me he occasionally took them out of the safe because they were, in his words, "beautiful... and I just loved the weight of them in my hand." His stash was starting to build up to a point where he had enough "savings" for almost any emergency. The pain deepened further when he learned that thanks to current IRS rules, he can't even write off the loss. (He's forgoing a homeowner's claim, given the industry's reputation for dropping customers for making "small" claims.)

Needless to say, my friend is no longer storing his gold (and silver) in that safe. He's the kind that would normally shy away from using a bank safe deposit box, but not anymore. Even with that, though, he knew this method wasn't perfect and so explored all his options. He's decided to follow the suggestion I outline at the end.

After the dust settled, he told me that yes, he felt violated; yes, he's still angry; and yes, it's made him suspicious of others around him, a feeling he hates. "But what I suddenly realized," he said, "was how valuable gold is becoming again. It's not a 'barbarous relic' anymore... it's not a pretty coin or a hunk of metal or a commodity or even an investment. It really is money, and it's scary to think how dicey things might get when everyone sees gold as money again."

My friend is not poor; there were other valuables the thief could've snatched. He took the gold.

So what about you? How safe is your safe? Are your clever hiding spots clever enough?

Here's a quick checklist of the three most common places to store your gold. My friend overlooked one of the basic rules of home storage, so I hope you'll review where and how you store your precious metals so that you can avoid the same pain and loss he experienced...

Safe deposit box

The easiest and simplest way to store gold is in a safe deposit box at your local bank. If you go this route, use a local bank. You want to be able to get to your gold in an emergency, which is one of the reasons you own it in the first place. So don't keep it in a different state or a distant city. Keep it close.

However, as my friend acknowledges, a safe deposit box isn't perfect. First, your access is restricted; you can only get to the gold during regular banking hours. Second, safe deposit boxes are not insured against robbery. And last, a bank box compromises your privacy. It provides a generous clue for the government, in case it ever decides to repeat FDR's 1933 confiscation of gold.

A related option would be to use a depository or private vault. They're outside of the financial system, though they tend to be on the expensive side. And they're not plentiful, so you may not live near one.

Bury it

This is where the term "midnight gardening" comes from; people bury their gold at night so others won't notice the digging. The alternative is to find a separate reason for the excavation, such as fixing a pipe or removing a stump, and work in the daylight.

Either way, before those of you who are used to clean fingernails pass on this method, consider its advantages: it won't be damaged in a fire, and a burglar would need to know where to dig. A lot can happen in the world that won't disturb buried gold.

A few practicalities, if you decide to go the shovel route. First, use the right container, something airtight and waterproof. This is especially important if you are storing numismatics or are burying silver in any form. We've been told those water bottles that hikers use work pretty well, but choose one heavy enough to stand up to years of erosion and persistent insects. Another choice is a small section of PVC pipe from your local hardware store; cap the ends and then bury it in a shallow puddle of cement.

Don't use a coffee can, since the color on the metal can bleed. To protect from scratching, put each coin in a plastic baggie or something similar.

Where do you bury it? Your location should be neither too easy nor too difficult to find. Not too easy, so that the gold won't be found by a thief. But not so difficult that years later, you or your heirs have trouble locating it. Complicated instructions (including treasure maps) can get muddled with time and create the risk your gold will never be dug up.

Find a place, on property you own, that you'll always remember but that isn't obvious if someone learns you've buried something valuable.

Keep in mind that most modern metal detectors can operate to a depth of about 4 feet for objects as large as a stash of coins or bars. There's also ground-penetrating radar, used primarily by forensic investigators, that can detect where digging has occurred, as well as satellites that can pinpoint where ground has been disturbed.

Hide it in your house and/or use a home safe

Indoor storage is practical for smaller quantities. You can probably think of dozens of places in your home where no one would think to look. Avoid any place obvious, such as a jewelry box or cookie jar. The disadvantage of this method is exposure to, as my friend can tell you, theft, along with fire, flood, and other natural disasters.

Consider using a safe, ideally one secured to the floor. As one dealer said, "A safe can be brought in on a two-wheeler and taken out on a two-wheeler, if it hasn't been attached to a building or at least hidden." I've heard good things about Liberty safes, and they have a replacement guarantee. For obvious reasons, my friend is now gun-shy about using a safe with a key lock.

If you use a floor safe, locations for it include the garage, under a refrigerator, or anywhere you can place something over it. Another option might be under the floor of a storage or garden shed; you can both install and access it without being seen, day or night. We recommend installing it yourself, and some of the kits make it easier than you it might expect. We wouldn't hire a contractor.

Before you buy a safe, however, I recommend reading this article from a veteran bullion collector: How Safe Are Safes? (If you can’t log in because you’re not a BIG GOLD subscriber, why not try it today risk-free for only $79 per year? Details here.)

Leave the right trail

However you store your gold, let exactly one person know the details. It needs to be someone in whose honesty and discretion you have complete confidence. It will be that person's job to access the gold if you are incapacitated or die. If you are using a safe deposit box, his or her name should be included in the box registration, and they should know where to go to get the key.

Tell one person, but only one. No one else should know. This is especially important if you're using home storage. You don't want to come home someday to find your house turned upside down because someone heard you're living in a treasure chest. Even worse would be to come home and find a looter waiting to have a chat with you. My friend kept quiet about his gold, but admitted some family knew about it. That's all it took.

There's just no other way to say it: Keep quiet about your gold.

Unless you've reached a point in life where you are depending on your children for help with your affairs, a child is not a good choice as your gold storage confidant. Kids talk, and you don't know whom they might tell or how far the story might travel.

But you do need to tell someone, regardless of your storage method. I heard of an old miner who - no kidding - left a treasure map for his kids, to help them figure out where he'd hidden his gold. But someone else found the map - and his kids never got their inheritance. And what if the kids had received the map but weren't very good treasure hunters? I've read similar stories about descendants who knew that gold had been left for them but had no idea where it was.

What if more than one person already knows you have gold? Review your home storage methods to be absolutely sure they are adequate, or use one of the other methods.

So what's the best place to store your physical gold? Well, your choices boil down to three: store your gold in a safe deposit box, bury it, or hide it indoors. Each method has pluses and minuses, but probably the best method is a combination of them all. In other words, diversify your storage locations. My friend could've been wiped out if the robber hadn't been trying to be sneaky.

Last, don't let this scare you off from buying bullion. It's still the asset that offers the best monetary protection for the foreseeable future. Not owning it may leave you feeling robbed when you go to use your paper dollars and find they won't buy you as much as you thought. That's not a theft you can prevent - unless you own gold.

Today it is more important than ever to allocate some of your portfolio to gold and silver. Right now China, Russia and other countries are plotting to dump the U.S. dollar – and they have started to hoard gold in never-before-seen amounts. Don’t wait until it’s too late to jump on the runaway gold train… watch this free video for more information.

© 2011 Copyright Casey Research - 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.


Comments

Mike
03 Mar 11, 04:11
Homing in on the thief

All your buddy needs to do is make a list of the people privy to the key's hiding spot, then scrutinize those individuals as nonchalantly as possible for a couple of weeks. Look for out of the ordinary purchases, investments, if they come around less or if they come around more than usual, if they mention the theft to him after he's explained it already (especially if they say venomous things about someone who'd do such a thing, dead give away.). Doing these things to family members and close friends isn't fun, but neither was finding his safe had been pilfered! Once the culprit is triangulated, he must confront them on it, Tony Soprano style!


Post Comment

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