Gold, silver and other precious metals have been used by humanity for millennia as a store of value. Today people still use them for investment and to counteract inflation or volatility in the financial markets. If you are investing in physical precious metals, one of the biggest considerations you face is how to securely and safely store them. There are many options to store physical precious metals.
One option is to store them in a third-party vault. Often called a bullion or precious metals depository, these are similar to bank vaults, but are provided by private companies that will secure and insure your metals for you. This helps to reduce the risk of theft, loss or damage when storing your precious metals in your home. It’s even possible to store your metals in overseas vaults, which also have the advantage of reducing governmental and societal risks. And you might be surprised at the affordability of storing your precious metals in a vault. But you need to understand what you are getting yourself into as not all vault services are the same. For instance, you need to understand what unallocated, allocated and segregated storage is. That’s where you should start. Then we take a look at where and how you can store your precious metals in a vaulted storage.
How do precious metal depositories typically work?
When a customer opens an account with a depository, they typically purchase the desired amount of precious metals either directly from the depository or from a dealer and have them sent to the depository. The depository will create a contract with the customer. It is important that you read and understand what it is you are entering into and in particular if the stored bullion is unallocated, allocated or segregated. Once at the depository, the metals are then recorded and physically stored in a secure vault with 24/7 surveillance and strict access controls.
The depository typically provides the customer with a detailed inventory of their holdings and updates on the status of the deposits and inventory. The metals are usually insured against theft, loss, or damage, but make sure for yourself! You can also arrange to have your metals withdrawn. You can arrange to physically pick them up, have them sent to a new depository or delivered to a location of you choosing, like your home. The withdrawal often incurs fees, along with shipping and insurance for the shipping. But, the physical metals are yours, so you should be able to arrange the withdrawal without issue.
Precious Metals Vaults / Depositories Around the World
There are several reliable, established bullion depositories around the world. Just make sure you do your own research, ask questions, and make sure it is clear what service is being provided. In an ideal world, you will want segregated storage, but there may be instances where allocated or even unallocated storage fit your circumstances and needs better. But what company and where?
Jurisdictions To Consider for Precious Metal Vault Storage
As for which jurisdiction to select for your vault storage, you can choose one in your home country which would provide easier access. But, you may also want to consider enhancing your security and privacy by selecting a vault in a safe, dependable overseas jurisdiction. Here are list of some jurisdictions you may want to consider along with some notable bullion depositories. Many depositories will have vaults in different jurisdictions, so that also may help in your decision-making.
USA
OK, many readers will be located in the USA so it may make sense to have your gold and silver stored in the US. You must take into consideration that the US doesn’t respect personal privacy, has a history of being nosey, and sharing information, and of even confiscating people’s property, including gold! It’s also a highly politicized nation that attracts attention from other world powers. But, if you are in the US, it may make sense to use a vaulted storage service. And there are some good, reliable services to choose from. These include: GoldSilver, Money Metals Depository, BullionVault, SD Bullion, International Depository Services, Texas Bullion Depository, BullionStar
United Kingdom
Once a part of the EU, the UK is an interesting jurisdiction now. The UK has been a powerhouse in the financial sector and has a long history with the precious metals industry. Now that t has separated from the EU, there is less likelihood of capitulation with unfriendly privacy and ownership laws. Storage options abound too. These include BullionVault, Loomis International, The Royal Mint, Brinks, Gold Core.
Switzerland
This is of course a country you’d expect on this. It has remained a stable jurisdictions, one that has adroitly sidestepped many conflicts and created a niche for itself in terms of financial and banking privacy. This has been a little shaky in recent years though. And compared to other jurisdictions, the high-security, cutting edge technology hasn’t been implemented. You will also pay a bit more for the heritage factor. Gold Switzerland, Swiss Gold Safe,
Austria
Austria is another interesting nation. Unlike it’s other EU peers, it has retained and promoted financial privacy. And that makes it a more reliable, trustworthy jurisdiction to store your bullion. One of the best vaults is Das Safe.
New Zealand
Due to it’s location and it’s friendly relationships across the globe plus pretty decent privacy laws despite being part oft he Five Eyes group, New Zealand may eb a good option. There are several vault services in the country that include BullionStar, New Zealand Bullion Depository and New Zealand Vault.
Other European Countries
Similar to the US, privacy and ownership may be a concern. But again, it may make complete sense for someone to store their bullion in a depository in European nations because it is closer to hand.
Singapore
This is a top notch, safe-haven jurisdiction with laws that are friendly toward the storage and protection of bullion and privacy. There are several very secure facilities offering cutting edge services. These include Le Freeport, BullionStar, Singapore Precious Metals Exchange, Malca Amit.
Cayman Islands
This is a high-end, pricey destination that offers excellent privacy and security. It is relatively new in the bullion storage sector, but if you fancy the the idea of storing your metals in the beautiful Caribbean then check out Strategic Wealth Preservation.
Top Pick for Vault Storage: BullionStar
My current top choice for an overseas jurisdiction would be Singapore. Their laws and regulations support ownership, privacy and security of assets, unlike many other jurisdictions. I have had great experience with BullionStar, which is a surprisingly affordable option for overseas storage, in Singapore, but they also have vaults in New Zealand and the USA. You can also purchase your bars and coins from them and have them delivered to you anywhere in the world.
The Final Score: Secure your precious metals with a third-party vault
If you have invested in physical gold and silver then vault or depositories may be an option for you. If you have a small amount, then probably go with self-storage at home. But, if you have a little pile and plan on growing it, then a vault service can provide security and peace of mind. Couple it with the right jursidiction, and you also benefit from privacy and enhanced security. Of course these services come at a cost, which is why the amount being stored needs to be large enough to justify the service. However, you may be surprised at how affordable some can be. Shop around and ask questions. Make sure you know what service you are getting. In particular, make sure it is clear whether it is unallocated, allocated or the preferable segregated type of storage.
In my research and experience, BullionStar is a great vault option with depositories in Singapore, New Zealand and the USA. It is affordable and accessible even for smaller precious metals investors.
As always, be smart and stay safe.