So, you’ve finally decided to invest in gold — a smart decision because gold offers excellent protection against inflation risks, is easy to sell, and doesn’t require much maintenance. The only thing left to consider is where to store your gold bars or coins.
The right gold depository keeps your investment safe and maintains its value. While some people choose to store their precious metals at home, others choose IRS-approved storage vaults.
Here is what you need to know about gold depositories and the importance of storing your coins and bars to protect your investment.
Why Store Your Precious Metals?
Gold and other precious metals don’t come with an insurance policy. If you lose or someone steals your bars and coins, they are gone for good. Storing your precious metals in a secure location helps you protect your investment.
Gold retains its value over time and is one of the most durable precious metals. However, If you don’t store your coins somewhere safe, they may get damaged and lose their value. The first place people decide to keep gold is their home.
If you decide to store your gold at home, here are a few things you should know:
- Use a fireproof safe
- Have at least three layers of protection
- Don’t store all of your bars and coins in one location
- Use a decoy safe
- Don’t bury your gold outside
Precious Metal Depository
Storing your precious metal at home is not the safest option. That is why many experienced investors decide to use third-party facilities or depositories to ensure optimal protection for their valuable investments.
There are two types of depositories — allocated or segregated.
Allocated Depository
Allocated storage vaults are a popular option among investors due to the convenience and flexibility they offer. When you choose this type of storage, you need to ship your gold coins or bars to the storage location. Once your precious metals arrive, you will get a receipt stating that the assets belong to your name.
When in an allocated depository, your gold is stored together with other investors’ assets. When you want to withdraw some or all of your investment, you will receive the requested amount. The only difference is that you might not get the exact coin or bar you initially deposited.
For some investors, this isn’t an issue, but it plays a significant role in their investments for others. That is why some choose a segregated gold depository instead.
Segregated Gold Storage
A segregated depository is more expensive than allocated, but it keeps your gold separate from other investors’ assets. When you store your gold in segregated storage, you know you’ll get the same coins and bars you deposited.
It is an excellent option if you have vintage gold coins or bars with emotional value.
The Benefits of Gold Depository
Depositories offer numerous benefits, and here are some of the most important ones.
Security
Keeping gold bullion at home involves considerable risk for the owner. If other parties learn that you keep gold at home, you may become a target of theft. Gold depositories feature state-of-the-art cameras and armed security to ensure peace of mind and keep the investments safe.
The United States government keeps all gold reserves in the United States Bullion Depository in Kentucky, operated by the Department of the Treasury. At the moment, the depository holds more than 147 million troy ounces of gold bullion. The United States Mint Police safeguard the Kentucky depository.
Although the Mint Police don’t protect all depositories in the U.S., a third-party facility is still the best place to store your gold coins and bars. You can sleep well at night knowing that your investment is safe.
Space
Whether you are a collector or investor, you will eventually run out of space in your home or office and won’t be able to store gold anymore. Precious metal depositories have more than enough space for your gold collection. Most depositories have space for storing large quantities of coins and bars.
Regulation
Gold depositories are very strict regarding the rules and regulations of the facility. Reliable depositories have rigorous accounting practices and regular auditing to ensure that every coin is in place. It is almost impossible for a coin to go missing in these third-party facilities.
Temperature Control
Reliable and respectable gold depositories have strict climate and temperature regulations. They go the extra mile to preserve the condition of precious metals and maintain their value.
Insurance
Although precious metal depositories have strict rules regarding safety, in the extreme case of damaged or lost coins or bullion, they offer account holders compensation. They will replace your lost or damaged precious metals.
The Disadvantages of Gold Depository
Before choosing a gold depository for your precious metals, it is essential to know the disadvantages of these facilities and whether they make a difference in your decision.
Limited Access
Gold depositories have stringent rules regarding open hours. They provide maximum security but are only open during specific hours. That can be a challenge for investors who want to withdraw a portion or all of their assets in an emergency.
Maintenance Expenses
As you may assume, depositories don’t provide their services free of charge. If you want to keep your coins and bars in a third-party facility, you have to pay a monthly or yearly fee for storage space and insurance.
Segregated depositories are more expensive than allocated depositories, so if you don’t mind paying a premium, the maintenance expenses won’t be an issue.
How to Choose a Depository for Your Gold Assets?
Once you’ve decided that a gold depository is the best option to safeguard your assets and protect your investment, you need to choose the right one for you.
There are various factors to consider when choosing a depository — location, the types of metals they work with, and how professional the distribution process is. As you do your research, here are a few other factors to consider.
IRS-Approved Facilities
The depository needs to have approval from the IRS. An IRS-approved facility must follow all restrictions, including tax laws. You will have peace of mind knowing that your gold is stored within safe storage that goes through a strict auditing procedure.
Reporting Requirements
Most depositories have accounting and reporting protocols, but only the best ones provide access to detailed documentation. As a precious metal owner, you should know how and where your gold is stored.
Financial transparency is crucial for building trust between the depository and the investor.
Shipping Fees
The shipping to and from the gold depository is the investor’s responsibility. Before choosing a depository, make sure it is close to you and offers reasonable shipping and storage fees. Also, check if the depository charges extra for insurance protection or the costs cover those expenses.
Best Gold Depositories
There are a few precious metal depositories in the United States. Here are some of the best ones that check all boxes regarding safety, maintenance, and auditing procedures.
Delaware Depository Service Company
Delaware Depository Service Company is approved by the IRS and licensed by the CME Group. They have storage available in the U.S., Canada, and Switzerland and provide excellent insurance options for investors.
International Depository Services
International Depository Services operates in two locations, one in Delaware and one in Texas. They have excellent safety protocols and full-service facilities to meet the needs of various clients.
Brinks Global Services
Many know Brinks Global Services for carrying large amounts of cash across the state in armored vehicles. Besides these services, they also offer gold depositories in New York City, Los Angeles, Salt Lake City, and London.
JP Morgan Chase Bank NA
JP Morgan Chase Bank NA has more than 30 years of experience in providing financial services. They became a certified gold depository in 2011 and have offered storage facilities in Singapore and London since then.
CNT
CNT is an IRS-approved and COMEX-approved facility based in Massachusetts. CNT is also one of the largest sellers of raw gold to the United States government.
OXFORD GOLD GROUP
We also have our own storage! Oxford gold group is offering exclusive gold and silver storage to our clients. Our storage facilities undergo a strict vetting process to legally store gold and serve our clients. For more information you can check out this page.
Protect Your Financial Future with Oxford Gold Group
Oxford Gold Group is an industry leader in precious metals. So, whether you need help converting your IRA or 401(K) into precious metals or investment advice, you can count on our professional team to lead your way.
Oxford Gold Group welcomes everyone, including first-time gold investors, seasoned buyers, and collectors. Our goal is to provide each client with comprehensive details to make a well-informed decision regarding their financial future. We are here to answer all of your questions and address your concerns.
Contact us today at 833-600-GOLD to discuss which gold depository is suitable for your precious metal investment. We guide you every step of the way to make investing and storing as easy and stress-free as possible.
