Understanding Precious Metals Depositories
Investors and collectors of precious metals, such as gold, silver and more, have several options to choose from regarding how they will store their bullion. Some who hold smaller amounts of bullion, such as American Gold Eagles or American Silver Eagles, might be completely fine with storing their inventory at home (hidden place, safe, etc.). Those who have made substantial purchases from dealers (such as Metals.com) and require a significant amount of space, should consider a precious metals depository.
Different types to choose from
For those strongly considering a precious metals depository, it’s worth understanding that there are two types of storage to choose from. One type is segregated storage, in which an investor’s bullion is kept separate from the bullion owned by other investors. This provides perhaps the greatest level of security in a precious metals depository. The second type of storage is non-segregated, where the inventory of several investors is kept together in the same area. Although some may prefer one type of storage over another, both offer high levels of security and peace of mind when storing gold, silver and other bullion.
The advantages of a precious metals depository
There are several benefits precious metals depositories offer buyers of bullion.
· Space. For investors or collectors who have run out of space in their homes, a precious metals depository offers more than enough space for storing large quantities of bullion.
· Security. Keeping gold, silver and other precious metals at home represents a risk to the owner of the metals. If knowledge of the bullion becomes known by other parties, then the holder of the metals can potentially become a target of theft or worse. Precious metals depositories also feature armed security as well as state-of-the-art surveillance, providing peace of mind to those who trust the facilities to keep their bullion safe.
· Regulation and auditing. Precious metals depositories are meticulous about the regulation and compensatory services they provide. Regular auditing and tight accounting practices help ensure every piece of bullion is accounted for at all times. It is extremely rare that items get lost or go missing in these facilities.
· Insurance. In the extremely rare case of lost or damaged bullion, precious metals depositories offer customers compensation through insurance, delivering another component that offers peace of mind.
· Temperature and climate control. Facilities that specialize in storing precious metals are meticulous in ensuring proper temperature and moisture controls. Nothing damages the luster of precious metals more than adverse climate conditions.
The disadvantages of a precious metals depository
While there are significant benefits to utilizing a precious metals depository to house bullion, there are also disadvantages to be aware of.
· Maintenance expenses. Precious metals depositories do not offer their services for free. A fee is required for the storage space, security, insurance and peace of mind. In addition, customers who choose segregated storage can expect to pay a premium in terms of storage and security fees compared to those who choose non-segregated storage.
· Limited access. While precious metals depositories do provide optimum security, they are often far away from the customer and are only open during specified hours of operations. This can cause challenges for those who wish to obtain all or a portion of their precious metals inventory in case of an emergency.
The Metals.com Staff
