Depository storage is a great option for bullion investors who do not want to store their entire precious metals stack themselves.
Like most big decisions, there are advantages and disadvantages to consider. The list below will help you think through which factors are most important to you.
Depository storage may be the right choice if:
- Providing adequate physical security will be a problem for you. Some clients are at higher risk of burglary or home invasion.
- The value of the metal being stored at home rises to a financially significant level. Many investors will want professionals to handle secure storage of their holdings when values reach six figures or even millions of dollars.
- Insuring the metal against theft and loss is a primary concern. It is generally not possible to insure precious metal at home above certain thresholds. The cost of insurance coverage against loss and theft is one of the best reasons to store your metal in a depository.
- Handling the metal is difficult. Silver can be heavy in large quantities. A box containing 500 ounces weighs roughly 40 pounds. Carrying and storing boxes that heavy will be more than some people want to contend with.
- The cost and delay associated with shipping metal is something you want to avoid. Shipping comes with some hassle, delay, and risk.
- You want to be able to sell hassle-free when the time comes and not be responsible for packaging and shipment. Money Metals clients can buy, sell, AND store in one place. The metal never leaves our secure building, so these issues disappear.
- You want to set up a line of credit against your gold and silver. Money Metals can lend up to 75% of the value of the gold and silver clients store in our vaults.
Choose personal possession if:
- You want to eliminate 100% of all counterparty risk and assume full and immediate control of your metals. Investors who take possession of their bullion can avoid reliance upon any third party.
- You want immediate access to your bullion in case of a sudden personal emergency or meltdown in the financial system.
- You want to avoid storage fees. Secure storage (including insurance coverage) is not free. Money Metals Depository has the lowest fees in the industry, and they start at $96 per year (find the complete fee schedule here).
The majority of Money Metals clients choose personal possession. We suspect many others take the middle road – opting to keep a core holding of precious metals at home and then storing the rest in our depository.
If secure storage is not for you, we understand. We urge clients to take delivery of at least some of the metal they own.
About the Author:
Clint Siegner is a Director at Money Metals Exchange, a precious metals dealer recently named "Best in the USA" by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.