The majority of precious metal owners store their investment in their homes. There are several benefits to this, but we believe — as do many other experts — that these benefits do not outweigh the negatives. Still, this doesn’t mean that you should never store any amount of precious metals in your home — it’s a question of moderation.

The Downside

The main issue with storing your investment at home is theft. You wouldn’t keep $10,000 of cash sitting in a home safe, so why would you do the same with precious metals? There is a significantly greater chance of your home being robbed than there is of a vault or a bank being robbed. That risk increases when you include people who know about your investment.

Many investors like to show off their stack. They just have a hard time keeping it to themselves. What they fail to understand is that while their friends and families are never going to take advantage of them, the same might not apply to friends of friends, or to the people who overhear those friends telling other friends. It doesn’t matter how often you tell them to keep the secret, that stack is not as valuable to them as it is to you, so a juicy story might get told.

Your home may be your castle, but it’s not a vault. If thieves know that you have gold or silver sitting in it, you should expect them to do what they can to take it from you.

The Solution

It makes much more sense to store your investment somewhere secure. Sure, everyone knows it’s there, but just because everyone knows Fort Knox is full of gold doesn’t make it a prime target. Precious metal storage facilities will safeguard your gold for a minimal charge. They will hold it securely in their vault, ensuring that no one can access it, and many of them will even insure you just in case the unlikely does occur.

Of course, most investors want their hands on the gold or silver they buy: it’s one of the best things about investing in these metals. But storing your investment in a vault doesn’t mean you’ll never see it. When the time is right, you can simply arrange for home delivery. (Just try to avoid the temptation of stashing it under the mattress.) What's more, the best storage companies also allow you to visit your gold for a hands-on experience. You can enjoy it just as much as you could if it was in your home, but with much more security.

The Exceptions

If you buy a few gold or silver coins, it doesn’t make much sense for you to store them in a vault. The amount you pay every month will eat into the profits of a very small investment. You should look at such a service only when your reserve is worth more than $5,000 or $10,000. It also depends on your home security and your ability to keep a secret. If you tell everyone about your supply and you live in a high-risk area, you should probably offload as soon as you can. If you’re tight-lipped and live in a relatively crime-free area, then you can afford to build that investment a little more before you place it in a vault.

Before you decide, do your calculations. Work out the total worth of your hoard and the cost of a vault’s annual subscription fee. If the value of those metals has to rise drastically just to cover the storage cost, it’s not the right time for a vault. If first-rate security would have little impact on your total investment, and if you will be adding to your investment, it might be the right time. With GoldBroker, our service costs a little more, but that's because you get much more than you would with any other storage company. There is no safer or better way to store your gold and build for the future.


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