What Is The Best Way To Store Gold And Silver

What is the best way to store gold and silver

What is the best way to store gold and silver as storing precious metals could be a headache for novice investors. What are the options and which option is the best? Basically, there are three options to store gold.

What is the Best Way to Store Gold and Silver

Options to Store Gold and Silver

  • At home (in a safe or well hidden)
  • In a bank’s safe deposit box
  • In a private storage  firm

There are pros and cons to all options, but home storage or a private vault is the best option. Before we analyze those two options, I will have to explain why the bank’s safe deposit box will have to be excluded.

Storing Gold in a Bank

Banks do offer an excellent level of security and peace of mind, but storage fees can be high, as they can range from $100 to $500 annually. Accessibility is another issue, as the investor can only have access to his gold, during business hours, which coincide with most people’s work schedules. Also, investors will not be able to access their gold during public holidays. These restrictions can cause large problems in the event of a national emergency.

A gold investor puts his money into gold, to protect himself from the risks associated with the fragility of our financial system. To buy gold and then store it in a bank safe deposit box, will be at least inconsistent because, storage of bullion in a bank’s safe deposit box runs the risk of confiscation, due to bank bankruptcy (bail-ins), or the risk of government confiscation.

If you hold gold in a bank, and the bank goes bankrupt as was the case in Argentina, then you lose the advantage of immediate access to a means of payment for your basic needs in times of trouble, when access to traditional means of payment like cash or bank cards is hampered. The risk of bank failure is real and it was repeated a few years later in Cyprus.

There is also the risk of government confiscation and it actually took place in the US in 1933 with President Roosevelt’s executive order 6102. The risk of government confiscation is small but nevertheless is still there. Confiscation could happen if there is panic in the banking system or just before a new monetary system is announced.

Storing Gold at Home

Storing gold at home is the least expensive for storing precious metals, as customers benefit from the absence of storage fees. This form of storage is ideal for customers with small to medium size collections of precious metals. All you have to do is find a secure spot in your house or property and store your valuables.

Before you do anything you must know that keeping gold at home has also a few drawbacks. Investing in precious metals is a completely private decision, the fewer people who know about it the less of a potential target you will be. So don’t tell anyone you keep gold at home, and at the same time make sure it is well hidden.

If thieves find it or if you lose it, it is gone, and it is gone for good. You see gold bullion coins are easy to sell, as they are bought and sold by individuals, coin dealers, banks, and commercial dealers without a question.

Attention, with storing gold bars at home, as in order for the dealer to accept them, you might need to get your gold bars refined,  so the dealer can verify the gold content, which costs money and takes time.

Is buying a safe solution? No, I do not think so. An upright safe is always visible and it does send the wrong message. A hidden safe is also not a good idea either, you see a burglar can find it and if he cannot open it he will come back with his friends. In addition, a punk with a pistol can easily convince you to open the safe.

A sunken floor safe could be a better idea, a safe you can install on the floor of your closet or garage. These safes are generally small but invincible, as the door to them is actually below the level of your floor, often hidden under the carpet.

In my opinion, the best place to hide valuables is up in the attic. A few pounds of gold can easily be stashed in the far corner of your attic and there is no chance that any intruder, is going to go up there and search.

Private Storage Firm

On larger quantities of gold, I recommend the use of a private storage firm (precious metal depository). Precious metal depositories offer top-level security, as they are highly guarded establishments that are under constant surveillance, with all activities inside the depositories monitored and recorded.

Some precious metal depositories offer two forms of storage, segregated and communal. Segregated storage, allows customers to keep their valuables in an individual storage compartment, preserved for private use. In comparison, communal storage, allows customers to keep their valuables in shared storage areas along with other people’s bullion. Both types of storage offer excellent security. Unfortunately, not all depositories offer both forms of storage, so it is important to verify the information in advance before committing to a particular depository.

Furthermore, many depositories offer further means of protection through their accounting-auditing and insurance policies. If after an inventory inspection, an amount of gold is missing, customers should remain confident it will be covered by the insurance policies.


Storing gold should not be a headache, after all the purpose of buying gold is to ensure peace of mind and financial stability. Choose the type of storage you feel most comfortable with and that should be enough.


Investing In Gold And Coins

Investing in gold and coins

Investing in gold and coins is something most people have actually thought about it at some point in their lives.

Investing in Gold and Coins

Reasons to invest in gold

People invest in gold for their own reasons.  Some do it to preserve their own wealth, there are others who do it to actually increase their wealth, and many managed it in the past with much success.  There are many reasons to invest in gold, and in this chapter, I will present them to you.

Unlike paper currency or other assets, gold has a history of holding its value.  People like to invest in gold because they see gold as a way to preserve their wealth from generation to generation.  In reality, gold is a hedge against inflation. The limited supply of gold combined with the increasing demand in countries such as India and China is another factor that influences the price of gold.

In addition, gold is a hedge against geopolitical uncertainty, and my word our times are troubled times. Furthermore, portfolio diversification along with the weak dollar are two very important reasons for the investor to put his money into gold.

How to invest in gold

In the old days, there was only one way to invest in gold and that was only by acquiring gold itself, mainly in the form of jewelry and gold coins. During the centuries there have been many changes and nowadays, the investor faces a very difficult task, due to the fact that there are many options available.  In this post, I intend to inform the investor on the ways he, or she, can actually invest in the safe haven gold.

Direct ownership, in my opinion, is the best way to invest in gold.  Why?  There is nothing like pure gold in your hands, it is certainly better than money.  Its value cannot be changed or controlled by governments and that is the reason for governments to go off the gold standard.

Investing in gold bullion bars?

A gold bar is a quantity of fine metallic gold, that is manufactured by a bar producer meeting the exact standard conditions, such as labeling and record keeping.

Bars are the most traditional way of investing in gold.  In many countries, they can be bought directly through banks.  Bars are available in various sizes, 12kgr, 1kgr, 100gr, 50gr, 10gr, 1gr, etc.

The standard gold bar held as gold reserves and traded as such by the central banks, is the 400-troy-ounce. (12.400 or 438,9 ounces).  The 1000gr bar or the kilobar is the most popular bar among investors, and it is used extensively for trading and investment. The premium of these bars when traded, is very low over the spot value of the gold, making it ideal for small transfers between banks and traders.

Nevertheless, the bar’s purity must be 99.5%  (24 karats) at least, whereas there is a number of manufacturers producing bars at 99.9% purity. (24 karats too)

Investing in gold bullion coins?

Bullion coins are coins made out of precious metals with one purpose only, that of investment or store of value, rather than used in day-to-day commerce.  Many countries have their own bullion coins such as the British sovereign, produced by the British, the American Eagle series of coins available by the U.S. mint, and many others.

Bullion coins are produced in many different weights.  They are usually in fractions of one troy ounce, but some bullion coins are produced in very limited numbers in kilograms or more.  Bullion coins are usually available in gold and silver, with a couple of exemptions, (the Krugerrand, and the Swiss Vreneli) which can only be found in gold.

Bullion coins are priced according to their fine weight plus a small premium, based on supply and demand, as opposed to numismatic gold coins, which are priced mainly by supply and demand, based on rarity and condition.

Bullion coins sell, for a premium over the market price of the metal on the commodities exchanges.  This premium is due to the underlying demand for bullion coins, their small size, and the costs of manufacture.  In addition, the amount of bullion varies depending on the coin’s type, weight, and precious metal.

Other ways of investing in gold

Gold options and futures currently trade on various exchanges around the world and over the counter directly in the private market.  They are suited to the sophisticated and experienced, who can speculate on price movements in either direction.  The risk is high, and so are the profits and losses too.

The companies that produce the gold themselves as shares in gold mining companies.   If the gold prices rise, so will the profits of the gold mining companies and as a result, the share price will also rise.   However, there are certain risks here an investor has to take into account.  Mines are commercial enterprises, with problems such as flooding, subsidence, structural failure, mismanagement, negative publicity, nationalization, theft, and corruption.  Such factors can lower the share value of mining companies.

Gold Exchanges Traded Funds (E.T.F.s) are a very interesting way to invest in gold.  An E.T.F. is a type of mutual fund, that trades on a stock exchange like an ordinary stock.  The E.T.F.’s exact portfolio is fixed in advance and does not change, therefore the E.T.F. holds gold bullion as its own asset.  E.T.F. offers a practical way to invest and hold gold.

Investing in gold IRA’s

A gold IRA investment is an individual retirement account, an account that functions the same way as a regular IRA account however, instead of holding paper assets, it holds physical bullion coins or bars.

Gold is the type of investment that can protect when times are hard, and at the same time will also offer significant gains to your nest egg.  Back in 2001, an ounce of gold cost $271,00.  Ten years later it reached $1896,00, an increase of almost 700%.   During that time, banks and currencies collapsed, and the real estate market collapsed, but gold didn’t.  In particular, gold fed from these calamities, it was the rediscovered idol, in the time when everything else collapsed, from mortgages, credit default swaps, and derivative products, too complicated to even understand.

As you can see, a standard IRA, an IRA invested totally in stocks bonds and other funds are actually putting your hard-earned money at risk.  You are relying on government, weak currencies, economies, and large corporations.  Gold and silver can actually safeguard your investment.

Since the 2008 financial crisis, gold IRAs have become very popular.  Record gold sales, combined with the appearance of many more, that simplify the transaction, have made investing in an IRA a one-shop stop.  The result is robust IRA growth.

Nowadays, it is absolutely necessary for the investor to invest a portion of his/her savings in gold, as the dollar is still weak, there is geopolitical uncertainty, the country’s (US) trade deficit is out of control, and the potential inflationary impact of the Federal Reserve’s, stimulus programs.

How does it work?

It works the same way as a regular IRA account, however, instead of holding paper assets, it holds physical bullion coins or bars.

Investing in gold and coins should not be taken lightly. Do your own research and make sure you invest in gold the right way the way that suits you more.

Choosing the right gold broker

Choosing the right gold broker is always a difficult decision.  It doesn’t matter where an investor is prepared to invest, it is absolutely necessary to research and make sure his/her hard-earned money doesn’t go to waste.  In order to ensure the above and at the same time maximum earnings, it is important for you to read this page.

Selecting the appropriate broker

Check out the comments regarding the firm, especially the complaints, and see how these complaints were handled.  If there is a long list of complaints, then this is a sign to worry about.  Also, check the number of years the company operates, you want ten years of solid record.  Finally most important is to choose a firm with a commitment to keeping you informed.  Keeping you informed now and in the future.  If a salesperson gives you short shrift or hits you with a high sales pitch, then this is bad news.

LBMA members 

The LBMA (London Bullion Market Association) is the competent authority for the world bullion market, and the bank of England oversees it. It is imperative for the bullion to be produced by an LBMA-approved refinery.  This way, the gold bullion coins or bars are meeting the standards set by the LBMA.  In a few words, you are getting what you’ve paid for.

Direct storage outside the banking system

Storage of bullion should be outside the banking system, this way the possibility of confiscation due to bank bankruptcy (bail-ins), or government confiscation is eliminated. Storage should be direct to the client’s name with no intermediates.  This way there is no risk of the investor losing his/her investment, in case the broker goes bankrupt.  The investor should be provided with a storage certificate by the independent storage company.

Buyback, shipping, and pickup services 

The gold firm should be able to provide the client with several important services that include:  a buyback service a pickup service, and a shipping service as many clients would prefer their gold kept at home.  At the same time it is important for the dealer to be accessible to its client’s questions and queries, and give answers and solutions promptly.

 Vault location

The location of vaults is very important.  A vault should be located in a free trade zone to avoid taxes or duties.  There are many trade-free zones in the world, and most vaults are located there.  (Singapore, Toronto, Switzerland, New York, etc.)

I hope my post on investing in gold and coins has got you covered. If you still have any questions feel free to let me know in the comment section.



-Now Is A Good Time To Buy Gold

-Now Is A Good Time To Buy Gold

-Now Is A Good Time To Buy Gold

Although gold prices are holding five months highs, many investors are wondering if now is a good time to buy gold. I expect prices to continue to move higher and eventually retest last years highs.

Gold is up 12% since the beginning of the year and my opinion is that prices, still have the room to move higher, as ongoing global uncertainty supports the market.

There is a strong undercurrent of uncertainty. A crisis may dissipate quickly, but the general atmosphere of uncertainty will remain with us for a long time.

In particular, there is growing uncertainty in Turkey with the result of the referendum dividing the country further. At the same time the UK prime minister Ms Theresa May announced elections in a year packed with elections, Germany and France are also having elections and their result could change everything in the EU as euroscepticism is growing.

Although, gold is 12% higher since the beginning of the year, many fund managers, who after years of complacency are now rebuilding strategic allocations in gold to act as insurance policy.

I believe, the rally we have seen so far, is more than just safe heaven buying. It is all part of a much bigger pattern. Gold should reach last year’s high of around $1375, with the possibility of reaching $1400 per troy ounce. Of course, it will take some time to break through the $1300 psychological barrier.

It will take some time to get there, but the longer it takes, the more sustainable the gains will be. I am happy with the progress the precious metal is making and I repeat this is a still a good time to buy gold.

Something else to note, is that gold has not only reached nearly five month highs, gold has also managed to see higher lows during key events: Federal Reserve monetary policy meetings.

Nevertheless, I will not be surprise to see markets sell off a bit, as investors will try to pocket their profits ahead of the June central bank meeting. This is not to worry, as markets expectations are falling ahead of the meeting, pricing is only a 42,3% chance of a rate hike. Last weeks expectations were well over 50%.

Disclaimer: Please note that the aim of the above analysis is to discuss the likely long-term impact of the featured phenomenon on the price of gold and this analysis does not indicate (nor does it aim to do so) whether gold is likely to move higher or lower in the short- or medium term. In order to determine the latter, many additional factors need to be considered (i.e. sentiment, chart patterns, cycles, indicators, ratios, self-similar patterns and more) and we are taking them into account (and discussing the short- and medium-term outlook) in our trading alerts.