Few things can be as satisfying as being able to see and hold your Gold bars. It’s not the ultimate test of true wealth, but it does give you that satisfaction. This guarantee lets you know you’re a few steps closer to financial freedom. That said, is storing Gold at home worth it?
Some investors would tell you to store Gold bars in a bank vault with solid steel doors. That is a secure option, but what if you want to see your precious metals? This article will consider the issues associated with home Gold storage. It will also discuss situations when storing the precious metal yourself is a good idea.
‘Gold storage’ is a simple phrase that describes the act of storing physical holdings of Gold and other precious metals. Depending on the market situation, this depository act can be in either bar or coin form. It is also determined by the needs of the individual storing the item.
Gold storage is a crucial investment move because it protects your investment. In truth, you can choose to display your precious metals as a show of success. You won't get any satisfaction if they get damaged or stolen. Storage ensures that your investment is secure and you can maintain its value.
It's comprised of one of the most precious metal in the world, so its value is undeniable. Unfortunately, this situation also means your precious metals don't have a replacement policy. It also means they're gone for good if misplaced or stolen. Gold also functions as a bearer instrument meaning whoever owns it gets to keep it.
Gold storage is also suitable for preserving your bar or coin from damage. If the metal gets dented or ruined, the value will drop. By storing the commodity however, you can keep it in good condition. It also ensures you have enough bargaining power when you want to sell it.
As mentioned earlier, storing Gold in your home gives you constant access to your valuables. But this situation isn't always as extraordinary as you think. Here are some reasons why storing Gold at home may not be a good idea;
It’s a known fact that precious metal owners go to great lengths to secure coins and bars at home. The preferred storage areas include fake books on a shelf, under the refrigerator, or in a garage. It’s also possible to do what’s known as “backyard gardening''. This act involves Gold owners checking on and adding to their storage. It's also done under cover of darkness. Unfortunately, these practices might not be enough protection from a natural disaster.
In 2005, Hurricane Katrina affected gulf residents and made them homeless. When the waters receded, looters took Gold and other precious items they could find. A similar situation happened when Hurricane Sandy struck in October 2012.
Metal finders and hobbyists found precious Gold coins and jewelry dispersed across the affected area. Some of the valuables were found but most never made their way back to their rightful owners.
Based on this occurrence, Mike Clark, the president of the Diamond state depository at the time, released a statement saying, “It would be better to keep precious metals in a depository than at home. This move is necessary to earn you peace of mind in case a hurricane or tornado strikes again.”
Home burglaries happen a lot more than you can imagine. According to the FBI, about 2.5 million burglaries occur annually only in the United States. With such a high figure, there's every sign that the burglars would have stolen a lot of valuables – Gold being among the most highly sought of them.
In most cases, home burglaries come down to access to information. Many people know you have Gold stored in your home. This category ranges from the banking staff to safe installment workers. There’s also a ripple effect of information sharing. Those individuals could tip off third parties about what they know. This action further compromises your valuables.
A potential thief ruins your storage with the correct information about its location. Unfortunately, it's also difficult to track the stolen items once they're been lost. The Pew Research Center statistics show that only 13% of burglaries are solved!
This situation might not be a common one, but it does happen. The government can decide to seize your Gold assets depending on the economic situation. A memorable instance was the seizure in 1933 during the great depression. This act resulted from Executive Order 6102 issued by the Franklin Roosevelt administration.
Citizens had to sell their Gold below market value at a huge loss. But, the government used this opportunity to print more dollars. The Gold confiscation boosted the economy but left Americans unhappy. Some citizens went to court, resulting in lawsuits against the government. Nothing positive came of them, and the private ownership of Gold remained illegal until the 1970s.
A similar situation happened in Australia in 1959. The government passed a law allowing the seizure of Gold from private citizens. The confiscations occurred as a result of currency protection. It was also permitted for public credit by the Commonwealth of Australia.
Another case happened in the United Kingdom in 1966. The British government stopped private citizens from owning lots of coins. The acceptable number became four to five Gold coins. The administration also blocked the private importation of Gold. These sanctions were to stop the pound's decline. The ban was lifted in 1979. However, citizens were frustrated by the lack of access to precious metal assets.
A typical home insurance policy provides coverage for cash-related items. This compensation is usually minimal compared to the actual loss you may incur. The max coverage limit is usually $250 on all items in the USA, including banknotes and coins. It should be noted that most insurance policies in various countries of the world don’t cover such valuables which are likely to leave you in a state of loss.
Reluctance from the insurance companies to compensate without proof has also been observed. For instance, if a Gold coin collection or Gold bars have been taken from you, the insurance company would be reluctant to make any payments if you lack evidence about its condition at the time.
There are some cases where home Gold storage might be a decent idea despite all we’ve discussed. These scenarios include the following;
Storing Gold in small amounts makes it difficult for thieves to find it. Even if they do, you won't lose as much Gold – albeit, only a small portion of your total holdings. If you still want to go against common wisdom and store Gold in your house, then always ensure it's kept in small portions around the house.
This strategy is a major deterrent to burglars trying to steal your precious metals. The FBI reported that 83% of burglars would check to see if there was an alarm in the house. This strategy is necessary to ensure the heist doesn't happen without resistance.
Having an alarm is a necessary investment for your home's Gold storage. It can alert you and your neighbors to the possibility of a break-in. This awareness increases the chances of stopping the theft. You can also get an alarm that alerts the police and gets professional help.
You can also mount security cameras and motion detectors to trigger the alarms.
There's always the temptation to show off Gold bullion and coins to friends and family members. It's normal, but you'll need a safe place to store the items after displaying them.
A good option is a safe behind a picture or under a floorboard. This location isn't one that a burglar would consider so you can take full advantage of its covert nature. You can also keep your Gold behind the sock drawer, which is the perfect hiding place for small portions of Gold. It can be stored at the back of the drawer or taped to the roof.
Gold can also be kept in old furniture or large instruments like a piano. These options are worth considering because they have a lot of space. Their nature also ensures finding the Gold by accident is very unlikely. If these options aren't appealing, you can bury the Gold in your garden. Since you own the property, there's no chance of it being dug up unless you want it. The Gold can also be kept in any location of your choice, away from prying eyes when you intend to dig it up.
You can also store your Gold bullion in the attic. Family members and burglars wouldn’t be tempted to look there due to the dusty and scattered nature of the place. You can also get a box and label it family photos or used clothes to make it a decoy.
As you may have noted above. Storing Gold at home carries more risks than benefits. Even in the conditions where you want to keep Gold at home, you have to go to great lengths to ensure it stays safe like installing alarms or burying it. That’s why we never advise our customers to secure such a valuable commodity themself.
We understand that having precious metals near you can be very satisfying. However, storing Gold at home exposes your valuables to many unwanted situations. Therefore, ISA Bullion strongly advises against taking possession of your Gold and securing it yourself.
If you do wish to store it, the ideal location would be a fully insured and secure storage facility like a Bank locker. However, banks don’t insure your possessions kept in a bank locker. On the contrary, a Gold trading platform like ISA Bullion can be perfect for you as we offer fully insured Gold vaulting services along with many other benefits.
But unlike a bank, we also let you make profitable trades on the go – on your physical holdings with us directly from the ISA Bullion app for iOS or Android. You can lock in profits instantly, no matter where you are in the world. We also buy back your Gold instantly in case you wish to sell urgently at a pre-agreed price point.
So why wait? Store your Gold with us and enjoy the luxury of making profitable Gold trades from anywhere with the ISA Bullion app. Looking forward to hearing from you!