We always advocate gold storage companies, gold trading software and anything that doesn’t involve storing gold in your home. As a result, we are often asked,
The truth is that it isn’t always the worst place to store precious metals and there are ways you can safely store gold in your home. But you need to be very careful when you do, and there are limits on what you should store. In this article we will look at those limits, as well as the issues surrounding storing gold in your home, and the exceptions. We will also point out a few safer alternatives that might be better suited for your needs.
Storing Gold in Your Own Home
There are many reasons why you shouldn’t store gold in your own home, especially if you have a lot of gold to store.
These reasons, listed below, apply to bars, coins and any other form of gold:
- Theft: Houses get burgled all the time, and if you have a stash of precious metals hidden away, it will be found and you will make that burglar’s day.
- Damage: A fire is not going to eradicate your collection, but it will certainly damage it and seriously reduce its value.
- Trust: If you have your collection at home, you might want to show it off, and that’s understandable. But let’s assume that you only tell someone you know and trust, and that you tell them to keep quiet. They may also tell someone they trust, and that person may then tell someone they trust. Before you know it, the wrong people know about your collection.
- Insurance: It is possible to insure against your collection being damaged or stolen, but the price you have to pay is simply not work it, and even then, insurance companies aren’t always the easiest to deal with. In these situations, small print and technicalities can cost you everything.
Exceptions for Small Collection of Gold
If you have a small collection of gold, then you might be okay storing it in your home. You wouldn’t store hundreds of thousands of dollars’ worth of cash and jewelry in an unprotected home, but there’s nothing wrong with storing a few hundred or a few thousand dollars’ worth. Small collections are not only okay, but they are recommended, as you can then enjoy your collection, or part of it. However, you need to make sure you follow a few precautions:
- Do not tell anyone about your collection. Even if you think you can trust them. You don’t know who they will tell or who will find out.
- Put them out of view, preferably hidden away.
- Store them in a locked safe, preferably one that is too big or awkward to just be picked up and taken.
- Try and secure your collection on your home insurance. Be honest about its value.
Avoid Trouble in your Home: Store your Bullion at Broker’ House
Gold is a great investment, but you have to be very careful. That’s why services like GoldBroker exist. These guys allow you to buy large quantities of gold and silver, and they will store them in their vault. As soon as you purchase, you can arrange for that purchase to be sent to one of their secure, insured vaults, all of which are located outside of the central banking system. You will need to pay a small subscription fee for this, but weighed against the value of your investment and its potential for profit, this is infinitesimal.
GoldBroker is not ideal for small-time investments, but there is a high minimum order anyway, so anyone purchasing less than $2,000 worth won’t be able to order. If you want to invest small and avoid storing anything in your home, you can also opt for BullionVault, which allows you to trade gold like you can trade Forex or options, buying and selling at near spot price and making a profit as soon as things improve.