The Difference Between a Vault and Your Home
If you’re looking for a safe investment that doesn’t involve the risks of the stock market, gold bullion might be an ideal choice. There are two ways to store physical gold: at home and in a vault. Both storage options have their advantages and disadvantages.
Gold Bullion Storage Vaults
Last year will be remembered for a long time to come. Due to the recent market volatility, many investors are seeking out safer investment options.
Many people are investing in precious metals such as silver and gold bullion because there is so much uncertainty in the stock market.
Investing in gold bullion and other precious metals will keep their value, but should you store them in a vault or at home? In this article, we will discuss the pros and cons of gold bullion storage in a vault vs. at home.
In addition, we will discuss the best IRS-approved depository storage vaults for precious metals storage.
Exactly what is a Depository Storage Vault?
Depository storage vaults store and insure precious metal investments in a secure third-party facility. When storing a large amount of precious metal, people usually choose depository vaults.
You ensure that if anything unfortunate happens and your bullion get stolen, the storage company will replace the value (up to a specific amount).
Additionally, vaults maintain the appropriate conditions for storing precious metals, such as maintaining the right temperature and humidity.
If your house gets broken into, you won’t lose such a substantial investment if your gold bullion is stored in a secure and safe vault instead of your home.
Keeping gold bars in safe deposit boxes is not recommended as they are not insured by the FDIC and are governed by bank regulations.
Furthermore, safe deposit boxes have a limited number of days in which you can gain access, so if it’s a bank holiday, you can’t access your box.
Pros and cons of bullion storage in a vault vs your home
When it comes to storing gold bullion, there are two main options: at-home storage and storage in a vault. Both have their pros and cons that should be considered before making a decision.
At-home storage is generally the less expensive option, as you won’t have to pay for rental or security fees. However, it also means that you are responsible for the security of your gold, which could be a concern if you don’t have a good home security system. Additionally, if something were to happen to your home (e.g., fire, flood), there’s a chance that your gold could be lost or damaged.
Gold bullion storage in a vault has many advantages over storing it at home. Perhaps the most obvious advantage of storing gold in a vault is that you don’t have to worry about it being damaged or lost. Gold is a very durable metal, but it can be scratched or bent if not handled properly. If you store your gold at home, there’s always the risk that it could be damaged or lost.
When it’s stored in a vault, you don’t have to worry about that. Vaults are designed to be secure against theft and natural disasters, so you can rest assured that your gold is safe. However, you will have to pay a fee for that security and safe storage.
Finally, storing gold in a vault can save you money in the long run. If you have gold that you don t need right now, and you arent going to sell it for at least a few years, there s no reason to keep it in your home. Gold can be hard to store safely at home because it is such an expensive asset. Many people choose to store their gold in a bank-safe deposit box. However, banks charge fees for safe deposit boxes, and there s always a risk that the bank could go out of business. That s why many investors choose to store their gold in vaults instead.
Best IRS Approved Depository Vaults
There are a very limited number of financial institutions that can store bullions of precious metals, which is understandable since precious metals have a great deal of value.
In this article, we’ll take a closer look at six out of seven of the only precious metal depository approved by the IRS in the world.
Regal Assets
An international depository and alternative asset management company, Regal Assets, offers alternative asset management services. As far as gold and retirement investments go, this company is at the top in North America.
Your first year of storage is free, but you will be charged $250 per year thereafter. The Better Business Bureau (BBB), Trustlink, and the Better Credit Association have all given Regal Assets perfect reputation scores.
Check out our review page to learn more about Regal Assets
Wells Fargo
Wells Fargo was founded in 1852 by Henry Wells and William Fargo. The company began as a stagecoach express service, transporting gold and other valuables across the American West. In 1865, the company became the first to offer a transcontinental express service, connecting the East and West coasts of the United States. Today, Wells Fargo is one of the largest banks in the world, with over 8,700 branches and 13,000 ATMs across the globe. The company offers a full range of banking services, from savings and checking accounts to loans and investment products.
As one of the largest banks in the United States and offers a variety of services to its customers, including a depository service. The Wells Fargo depository service allows customers to store their money in a safe place and earn interest on their deposits. Customers can also use the service to make payments and transfer funds between accounts. The Wells Fargo depository service is a convenient and secure way for customers to manage their finances.
Brinks
Two authorized bullion depositories are maintained by Brinks Global Services, one in London and one in New York City. Compared to other depositories, this company offers a number of advantages.
Using an online portal, you can access and manage your inventory, and they hold full liability for all valuables. Your precious metals are prepared, stored, and released based on the preferences of the account owner.
Delaware Depository
Delaware Depository Service Company is another gold bullion storage depository. They mainly work with refiners, custodians of IRAs, coin dealers, brokerage houses, manufacturers, retailers, and commodity traders, but they also serve smaller individual clients.
In addition to Delaware’s unique tax breaks, Delaware DSC offers customers all-risk insurance coverage of up to $1 billion, and up to $100,000 per package during the mail or express delivery.
They operate an advanced secure depository in Wilmington, Delaware, which offers Class 3 vaults and state-of-the-art security measures. In addition to being IRS approved, Delaware Depository is licensed by the CME Group for both the NYMEX and COMEX exchanges.
JP Morgan Chase
Over the last three decades, JP Morgan has been involved in precious metals. But it only became an official depository in 2011.
Three state-of-the-art vaults now exist in three different locations: New York, Singapore, and London. However, they only hold less than 10% of the COMEX despite having multiple vaults.
In addition to gold and silver, they also store rhodium, platinum, and palladium. The company also offers risk management solutions to its customers.
HSBC Bank
One of the top six precious metal exchanges in the world is HSBC Bank, which is the world’s largest bullion clearer. They have the world’s largest vault (commercial) and are the largest custodian of precious metals.
Founded in 2003, they have ranked as the #1 gold and silver dealer in the country. A precious metals depository approved by the IRS with customers around the world, HSBC is a global depository for precious metals.
Whether you are in New York, London, China, or Hong Kong, you can access 24/7 trading and sales. Additionally, you’ll have access to global customer support around the clock, so you’ll never be left alone.
CNT Depository Inc
The final depository is based in the United States and is approved by COMEX. Bridgewater, Massachusetts-based CNT Depository Inc is the largest supplier of raw gold to the United States government.
With their Class III facility, they provide storage for many of the largest government mints and generate over $8 billion in revenue per year.
Among the depository’s features are 1,400 square feet of vault space, over 200,000 square feet of insured storage, and 75 cubic feet of private storage. Llyod’s of London insures all their precious metals.
Offshore Storage vs. United States
The United States has long been considered the safest place to store gold, but recent events have led many to question the security of American gold storage facilities. Offshore gold storage facilities have begun to pop up in recent years, and they offer a number of advantages over traditional American storage options. We will explore the pros and cons of offshore gold storage vs. United States storage options. Offshore Gold Storage
The first advantage of an offshore gold storage facility is that it offers more secure storage. Most locations are off the coast of Europe, with the majority in Europe itself. These offshore locations offer a high level of security due to their distance from the United States, as well as their lack of tax laws. The majority of offshore storage facilities are also outside of the jurisdiction of the United States government, making them even more secure.
Singapore has come to be an important place to store your gold. There are many safe deposit facilities with armed guards and vaults to keep your valuables secure. And it does not have a government budget deficit, a debt-free government, low taxes, and a sovereign wealth fund to diversify the economy. Other offshore locations where gold coins are safely stored are London, Zurich, New York if you aren’t in the U.S., and Hong Kong.
Offshore storage advantages
A small number of countries do not require reporting to the IRS.
Protect your gold from a potential government seizure, or freeze.
Offshore storage disadvantages
You may not easily be able to physically view your gold without traveling to the location.
You might face penalties if you keep your gold in a country that does not permit storage.
Final Thoughts
Gold and silver bullion is a fantastic way to round out your portfolio. Precious metals cannot depreciate, so your initial investment will never go to waste by purchasing precious metals.
When you store precious metals in a depository instead of in your home, you may be required to pay for storage fees. But there are many benefits to keeping your metal securely in a depository instead of your home. One of the biggest benefits of storing your gold and silver in a depository is that it keeps your metals away from potential threats, like theft or fire.
Some of the largest storage companies in the world also offer depository services. For example, Brinks and Wells Fargo both offer safe deposit box services for storing precious metals. In addition to large storage companies, some financial institutions also provide their customers with safe deposit boxes. There are advantages and disadvantages to each method of gold storage, but overall, it is a safe way to keep gold, since the advantages of gold storage outweigh the costs.
For more investment information, please read our reviews of the top rated gold IRA companies in the united states.
