How To Store Precious Metals 💰
Dear Rich Lifer,
There are essentially three places where you can store your gold and silver:
- A bank
- Your home
- A third-party storage facility
But out of these three places, which is the safest?
Some people will tell you a third-party storage facility is safest because that’s all they do: protect your investments.
Others will tell you a safety deposit box at your local bank is more than enough security.
But what if the U.S. government decides to confiscate your gold like they did in 1933?
Beyond the safety deposit box, some people just prefer having immediate access to their gold, silver, and platinum, so they choose to store it at home hidden away somewhere.
The storage dilemma is one of the most popular arguments among precious metal investors and their dissenters.
Skeptics will try to tell you that buying gold and silver bullion is too risky and some other financial instruments like shares of stock don’t come with the hassle of figuring out where to store them.
Why go through all the trouble, they say?
Today, we discuss how to store your gold and silver at home safely.
This guide will walk you through the “golden rule” of storage, give you tips on where to hide your gold and where NOT to hide it, and explain why insuring your precious metals is not necessary.
The Golden Rule Of Home Storage
Once you decide you’re going to store some of your precious metals at home, you need to abide by the golden rule of home storage.
Tell one person where you plan to hide your assets.
It’s critically important that you tell only one person whom you trust and have complete faith in their discretion. The second you tell more than one person, the chances of your secret getting out climbs dramatically.
This is because of the ripple effect: once someone knows you own gold, you have little control of who they tell — and who those people tell.
If you’re wondering how bad this can get, we’ve heard stories of people who were forced to turn over all their precious holdings with a gun held to their head, because word got out there was a “gold guy” on the block.
So, the golden rule is to tell ONE person where you have stored your gold and give them access to the hiding spot should anything happen to you.
Where Is The Best Place to Hide Your Gold?
A hollowed out book, of course.
Anywhere you’ve seen in the movies or on TV is exactly where NOT to hide your gold.
The risk of keeping gold in your house is theft. So, the key to hiding your gold is to choose a place not too complicated for you or your heirs to find, but hard for a thief to find.
Here are some Do’s and Don’ts on where to stash your precious metals so crooks leave empty-handed:
Don’t hide it anywhere obvious
Carved out books, fake rocks, or under a bed, are all too obvious. Even gold and silver Christmas decorations are a bad idea, unless you’re trying to set a decoy. Like we said, don’t hide your gold anywhere you’ve seen on TV or in the movies.
Do hide it three layers deep
Most burglars look for things they can grab and go. Think jewelry, watches, cash, electronics, art… A good rule of thumb is to hide your precious metals somewhere that’s hard to get to quickly. For example, in a safe, under floorboards, and in a closet with boxes covering it.
Don’t hide all of your gold in one spot
Another mistake is stashing all of your precious metals in one hiding place. If a burglar were to break in and strong-arm you into giving up your hiding spot, you’ll be better off if you only have to give up one location.
Do have decoys
Another option is to set up some decoy valuables. Consider leaving out inexpensive jewelry or cheap gold and silver coins. You can even go as far as buying another safe and holding a bit of cash and inexpensive valuables to give the thieves something to walk away with should it come to that.
Don’t assume thieves are stupid
Never underestimate the cunningness of a thief. Put yourself in thieves’ shoes and think about where you would look in a house if you knew someone had valuables hidden. Then hide your valuables somewhere else.
What About Burying Gold In Your Backyard?
This question comes up a lot, and there are mixed feelings about burying your treasures. The biggest concerns with burying gold is you forget where you buried it.
Also, there can be concerns with damage to precious metals which could decrease their value.
If you choose to do some “midnight gardening,” here are some tips to keep your bullion in its best shape:
Use waterproof, erosion-resistant, insect-proof, and airtight containers
Know that metal detectors can detect up to a depth of about four feet
Don’t leave complicated instructions. If you do leave instructions or a treasure map, consider splitting the instructions in two and giving them to two people you trust (this is an exception to the golden rule)
Choose a spot on your property that’s familiar to you and your heirs but not obvious to someone who may learn that you’ve buried valuables in your yard
Consider digging a hole inside a storage shed and installing a safe there. This way you can access your valuables as you wish without raising suspicions
Should You Insure Your Precious Metals?
This is another common question. The short answer is no, you shouldn’t. Here’s why we don’t recommend you take out insurance on your gold and silver if you’re storing it at home.
First, it breaks the golden rule. By insuring your metals, you have to reveal certain details about your holdings to strangers. You’ll be telling them how much gold you own, how many ounces, and where you’ve stored them.
Remember the ripple effect? By telling appraisers, insurance agents, and their office staff you risk giving up too much information for the benefit.
Not to mention the cost of insurance. A cheaper and safer option is professional storage through a third-party storage facility. Yes, the third-party will know you have bullion but they won’t necessarily know how much you have.
Lastly, most home storage insurance plans do not cover the full value if gold prices rise. So what if your gold is stolen at $1800/ounce. By the time you are reimbursed the value might have gone up to over $2500/ounce.
For these reasons we don’t recommend you take out insurance on your precious metals. If you want insurance, consider investing in more robust security measures for your home like security cameras and a vault.
Deciding where to store your gold and silver is an important decision. The good news is there are many options available to you. In future issues, we’ll discuss the pros and cons of some other storage options.
To a Richer Life,
The Rich Life Roadmap Team