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Where Should You Store Gold Bullion?

If you are new to gold investing then one of the most important aspects to consider is storing your gold bullion.

Why is proper storage so important?

Gold-BullionThis is because gold is not just a precious tradable item but also symbolises your future security and is a form of insurance. With a rapid increase in cases of theft, it is always better to store your gold bullion in a secured place so that you can benefit from it in the near future.

There are basically two ways of storing your gold bullion. You can opt to store it yourself or you can choose a company or a dealer to store it for you for a specific period of time. Each of these options have their own advantage and drawbacks but most often than not, it is recommended that investors should find the right form of storage themselves.

What are my storage options?

An important reason for finding a proper storage option is that you will be able to enjoy more control and possession over your gold bullion. In fact, there are times when investors choose the safety and security of their home for storing gold. Gold has been stored in homes for centuries although now there are several other options available as well. Let us take a look at some of the most popular and secure storage options.

Bank Safety Deposit Box

A safety deposit box in a reputed bank is the first option that an investor should ideally look at. The biggest advantage is that safeyour gold will be protected by the high security of the bank and this will help ease your mind. Most top banks have certain guidelines when it comes to providing security and hence identifying a bank should be the first step towards storing gold bullion. All banks across the UK charge a specific fee for rendering services like a personal safety deposit box. Depending on the bank, this fee will be charged monthly, quarterly, or annually. One of the salient aspects is that the bank will never ask you about the details of the content of the safety deposit box and this can be a drawback too. In a rare case, if the bank is robbed and your gold bullion is compromised then there will be no insurance relief as the bank is unaware of the contents of the box. Apart from the fee associated, the option of a safety deposit box is one of the most viable and recommended storages available. In order to opt for this type of storage, you need to ask the concerned bank for the status of availability of such a box as they are often hard to obtain.

Home Storage

The second option for storing gold bullion is home storage. This is one of the oldest options and over a period of time has also evolved thanks to technology. If you don’t have a proper storage locker at home then you can buy one or make necessary changes in the existing locker to make it secure.

There are different types of customised home safes available for storing gold and silver bullion at home. These safes can be classified under three categories, which are theft protection, fire protection, and a combination of both. Both types of home safes are water proof. There is a huge range of safes available in the UK that offers the following salient security aspects:

  • Fire proof, water proof, and theft proof
  • 3-wheel combination locking
  • Digital or electronic locking
  • Fingerprint recognition
  • Floor bolting
  • Fire resistant rating of 30 to 120 minutes
  • Fire resistant at maximum temperature of 900°C

The drawbacks of home storage is that at least one person should always remain at home. Even thought the locking systems have evolved but thieves are getting smarter and there are instances where they have eloped with the entire safe. As a gold bullion investor, you need to ensure that people in the neighbourhood are unaware of the fact that you have kept gold bullion at home.

You can even install under floor home safes or underground safes to reduce the risk. It is also important to declare the existence of the safe in your home insurance so that if anything does happen, the contents of the safe will be insured.

Coins Are More Secure_L_UKH14GT_02_1303053938857020000_O

One of the important aspects that new investors are not aware about is that gold coins are a safer and low risk bet as opposed to gold bars. If you are planning to store at home, then gold or silver coins would pose lower risk than gold and silver bars because they are not as heavy nor are do they require much space. You can keep gold or silver coins in your usual storage space and no one will ever notice. The moment you install a home safe, visitors to your home will take note of that but no one really looks at the usual storage places like drawers. Of course, even then you will need to ensure that your insurance company is aware of the same so that these coins are insured.

Since gold coins are smaller in size, you can even hide them in places like lofts, basement, and under the floorboards. It is much easier to hide a 1 ounce coin than 100gm of gold bar. The bottom line is that it is important to always conduct research before you choose a particular type of storage for gold bullion. You can even install alarm systems and other security systems including trip wires and laser beams within the house to ensure a higher level of security. You can also install spy camera or a complete home security installation system so that you can be at ease. The one big advantage of home safe as compared to bank safe is that you can see the gold physically and it is insured under your home insurance.