Of Gold & Silver

When you’re investing in gold, silver, and other precious metals, it’s a good idea to store some at home.  This may go against your natural inclination to hold it in a bank safe deposit box.  Let’s look at three reasons why you may want to avoid storing your gold and silver at the bank.

1.Safe Deposit Boxes Aren’t Insured — People make the mistake of believing that safe deposit boxes are insured.  They’re not.  The funds you keep in your bank account are FDIC insured, but the contents of your box are not.

That’s okay, you may say, banks are super secure.  Or not…

People tend to think of safe deposit boxes as being indestructible, but a couple of searches online will reveal all sorts of stories who have had their belongings disappear from safe deposit boxes.  Banks are only as secure as the people who work in them.

Also, safe deposit boxes are often stored in basement vaults, in areas that may be prone to flood damage.  While your gold may survive underwater, any documents you’re storing within could be irreparably damaged.

2. Bank Holidays — If you store your precious metals in a safe deposit box, you’re at the whim of bank hours.  Not only do banks have a lot of holidays, but they can be closed when you need them most, in an emergency.

For instance, in the U.S. after the terrorist attacks of 9/11/01, the banks were closed all week.  Gold rose 9% that week while silver rose 11%, but you couldn’t have gotten your paws on your gold even if you did have the key to your safe deposit box.  On the other hand, coin dealers and bullion dealers were all open, so you could have walked in and handed over some of the gold you stored at home and walked out with dollars any time.

3. The Government Can Keep the Banks from Giving You Your Gold –

Perhaps the most scary ideas is that of having your gold taken away from you.  It can happen.  If the government outlaws the private ownership of gold (this has happened before in the United States), the bank will be under orders not to hand your gold over to you! The government has confiscated gold from private citizens before, so why take a chance?

An Alternative to Storing Precious Metals in a Safe Deposit Box

So, what’s the alternative?  A in-floor safe in your own home.  You can get fireproof and even flood proof models, and you’ll never feel safer than with your gold and silver where you can keep an eye on it!