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 question.

Attention, to 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.

Conclusion

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.

 

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-month 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 year’s 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.

Now is a Good Time to Buy Gold

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, after years of complacency are now rebuilding strategic allocations in gold to act as an insurance policy.

Gold to Rally

I believe, the rally we have seen so far, is more than just safe haven 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 still a good time to buy gold.

The Fed Policies Impact on 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 surprised 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 market expectations are falling ahead of the meeting, and pricing is only a 42,3% chance of a rate hike. Last week’s 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.

-Now Is Not The Time To Abandon Precious Metal Investments

-Now Is Not The Time To Abandon Precious Metal Investments

-Now Is Not The Time To Abandon Precious Metal Investments

Now, is not the time to abandon precious metal investments.  Due to the euphoria caused by Donald Trump’s election victory, many investors are prepared to leave gold, silver, and other precious metal investments for the good old Dow Jones.  I personally believe now is not the time to move away from safe-haven investments.

Although, there is a strong demand for gold and silver globally, in the US buying activity for physical bullion has fallen significantly, especially in the wake of Donald Trump’s election victory.  On the other side, retail selling has increased.

The two terms of President Obama included the 2008 financial crisis, zero interest rate policy from the Federal Reserve, and the Quantitative Easing from the Europeans. There was plenty of reasons to buy gold.  Today they still are, but they are less obvious to the average investor.

Many people who were disappointed by Obama’s policies are now investing in the stock market.  Artificially low-interest rates are pushing inflation higher and the US dollar looks decent, compared with other world currencies.

If the dollar continues to get stronger, along with real economic growth and the risk assets continue to outperform, then we should not expect a bullish market for precious metals.

The second path involves price inflation, with a sharp rise to the national debt.  There is also a scenario that involves geopolitical uncertainty.  In this case, investors will have to hedge themselves against the dollar’s declining purchasing power.

The Bureau of Labor Statistics just reported a massive jump in the Consumer Price Index in four years.  There is also a proposal for tax cuts, and we all know tax cuts increase spending and therefore inflation.  However, at the same time tax cuts can increase deficit and borrowing, leading to a weaker dollar.

If Donald Trump convinces congress to levy import or border taxes, with a major partner such as Mexico or China, that will also mean higher prices in the US.

At the same time, the only way to address the massive deficit is a substantial devaluation of the US dollar, which is inevitable.

In addition, the President has made it clear to fight the Deep State.  The unelected often anonymous bureaucrats, who have a behind the scenes say on how the state is run. The President has many enemies and many of them are some powerful republicans.

On the other side of the Atlantic, there will be some very important political elections, with the anti-European forces gaining ground.  If they succeed that will upset the markets.

Furthermore, China is facing great problems as officials are desperately trying to maintain a currency peg, in order to deal with the massive amount of bad loans piled up on Chinese banks.

Conclusion

NOW IS NOT THE TIME TO ABANDON PRECIOUS METAL INVESTMENTS