Storing gold - at home, in a safety deposit box, or with your dealer.
As an individual buying gold, you basically have three options when it comes to storing the gold you own.
Option 1: Store your gold at home.
This is a popular option for a variety of reasons. First, it feels good to actually take possession of gold coins or bars. Gold is a beautiful thing to own.
Gold owners also like the fact that when you have your gold at home, in your own possession, you have a proportion of your wealth at your fingertips. If you suddenly have the need to convert some gold to cash, just jump in the car and drive to the nearest bank or dealer that will give you cash for your gold.
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Option 2: Store your gold in a bank’s safety deposit box.
With this option, you still take delivery of your gold, but then drive down to your bank and place it for safe-keeping in a safety deposit box in the bank’s vault.
This is probably the most expensive option, because you are paying for the shipping of the gold to your home, and an annual storage fee for your safety deposit box.
In addition, while historically a safety deposit box was the ultimate in security for one’s personal valuables, that is no longer the case. Banks and governments are increasingly finding reasons not only to look at what is in people’s boxes, but also to remove the contents altogether.
Articles on storing your gold at the bank:
Option 3: Buy allocated or unallocated gold through a dealer.
With this option you never actually take delivery of the gold. You buy it from a dealer or mint, and they keep the gold in your name.
The attraction here is that you don’t pay any shipping fees and, depending on whether you choose allocated or unallocated storage, you might not pay any storage fees either.
Articles on leaving your gold with your dealer: