Investing in gold and silver can be an excellent way to diversify your portfolio and protect your wealth against economic turbulence. Precious metals have been seen as a store of value for centuries. Even in a world of digital currency, they continue to hold their place as a valuable asset. And over the past months interest in gold and silver has again started to increase, both among central banks, institutional investors, but also among us regular Joe retail investors.

However, investing in gold and silver is not without its risks, one of the most significant being storage. Where are the best places to store your gold and silver? If you’re considering investing in precious metals, it’s crucial to know the potential risks and benefits of each storage option available to you. That way you can secure your gold and silver most effectively.

Table of Contents

Why buy gold or silver?

But first, let’s briefly touch on why someone might consider buying precious metals. There are several benefits to investing in precious metals, including:

Diversification: Gold and silver are an excellent way to diversify your portfolio and protect it against market fluctuations. Gold and silver are not as volatile as many stocks.
Inflation hedge: Gold and silver may act as a hedge against inflation. As central banks around the world print more money, the value of that money tends to decrease, but this effect often does not impact precious metals as much.
Tangible assets: Unlike investments in stocks or bonds, owning physical gold and silver means that you own a tangible asset.
Asset protection: Gold and silver can be an excellent way to protect your wealth in case of a financial crisis or a sudden economic downturn.
Real money: Gold and silver have been used to transact for millennia. They are reliable, recognizable and divisible.

What type of gold and silver to buy

Explain the different ways to invest in gold and silver and include precious metal ETFs, miner stocks and physical silver and gold bullion.

When it comes to buying gold and silver, there are several options available to you. You can invest in a precious metals ETF (exchange-traded fund) that tracks the price of gold or silver, or purchase stocks in mining companies, or buy physical bullion coins or bars. Each option has its own advantages and disadvantages that you should be aware before investing.

Precious metals ETFs

Precious metal ETFs are sometimes referred to as paper gold and silver. These are an easy way to get exposure to precious metals. However, ETFs have management fees associated with them, and usually you do not have any actual claim to the underlying gold or silver. And not all precious metal ETFs are backed by the physical metals.

Mining Stocks

Mining stocks can be very risky and highly volatile. You really need to know what you’re doing or have an appetite for risk. The reward can be considerable, but very uncertain.

Physical gold and silver

For the above reasons, many precious metals investors will purchase the actual physical metals such as coins or bars, referred to as gold and silver bullion It’s tangible, it’s accessible and it can be satisfying to hold a gold bar or coin in your own hands knowing that it’s yours. Coins are more easily recognized and traded, making them more liquid. Bars are less portable, but they have a lower premium, making them a more cost-effective investment.

Consider your investment goals and determine which type of gold and silver is best for you. While both are precious metals, silver and gold obviously carry different market values. $2000 may buy only one ounce of gold, but it could purchase 80 ounces of silver. There are advantages and disadvantages to that. For example, that one-ounce gold coin is easier to store. But it cannot be divided value-wise by less than $2000 (if the market price remains the same). The 80 ounces of silver, on the other hand, means you have 80 one-ounce coins. If you need to trade some rather than all, you can.

Where to buy physical gold and silver

If you are interested in purchasing gold coins or bars, there are many reputable, reliable bullion dealers. I have had positive experiences with JM Bullion, SD Bullion and BullionStar, but there are many other dealers like APMEX, Money Metals Exchange and BGASC. Often shipping is free over certain amounts, the order is insured and efficiently and securely delivered, right to your door.

Where to store your physical gold and silver safely

So, if you have made the decision to invest in physical gold and silver, the biggest question is where to store your gold and silver securely. There are always risks associated with storing precious metals, no matter the option. So it is important to weigh up the pros and cons of each storage solution.

The options range from self-custody in your own home (where you are entirely responsible for securing your precious metals) to third-party storage providers like banks and bullion vaults. We will walk through some of these options and describe the advantages and disadvantages of each.

Bank safe deposit boxes

Many banks offer safe deposit boxes that you can use to store your precious metals. In the past, a bank safe deposit box was a popular option for small amounts of precious metals storage and safeguarding all kinds of valuables.

Benefits of safe deposit boxes:

Convenience: If you already have a bank account, using a safety deposit box can be a convenient option for storing your metals. You can quickly and easily access your metals whenever you need to.
Professional security: Banks are known for their high levels of security, making them a reliable option for storing your precious metals.

Disadvantages of safe deposit boxes:

Custodial risk: You need to trust your bank to keep your metals safe. If the bank goes bankrupt or experiences financial issues, your metals may be at risk.
Limited access: While banks are open regularly, you may need to visit during business hours to access your precious metals, which can be inconvenient.
Limited capacity: Bank safety deposit boxes are generally not designed for large amounts of precious metals.

Vault Storage for your Gold and Silver

One option to safely store gold and silver is to use a vaulted storage service. This involves you storing your metals in a third party storage facility that is specifically designed for precious metal storage. These vaults, sometimes called precious metals depositories offer security against theft and natural disasters. They are fully insured against risks. These private vaults are the equivalent to bank vaults and may use the same technologies, sometimes even more advanced, to secure your assets.

Most precious metals depositories offer some form of allocated or unallocated storage, or sometimes both.

Unallocated Storage

Unallocated storage means that you own a quantity of gold or silver, but it is not tied to any specific bars or coins. Instead, your metals are pooled with other investors’ metals in a single location. You will probably be provided with proof of the existence of your quantity of gold or silver through an audit and certificate, but the gold you own would be a portion of whatever bars and coins are stored in the vault across all customers. This is usually the cheaper way to store physical gold in a secure depository. The vast majority of depositories will offer this option.

Allocated Storage

Allocated means that you own specific bars or coins, and they are tracked and stored in the vault alongside other people’s valuables. The Vault will often provide photos of your valuables and authentication certificates to provide peace of mind. So, if you purchase a 2001 American Eagle coin and have it stored in a bullion depository, although it will be stored alongside other customers’ bullion, that coin remains yours. It is allocated to you. This is reassuring and in my mind the preferred option. But it is a little more expensive than unallocated storage.

Segregated Storage

You may come across the term segregated storage too. This is not exactly the same as allocated storage. Segregated storage means that the customer’s gold and other precious metals are stored in a space that has been specifically designated to that customer rather than having their bullion stored alongside other customer’s valuables. The bars and coins you store there are specific to you. They are given a specific location in the vault, or even their own vault. This all comes with added fees of course.

Here are more details on unallocated, allocated and allocated, segregated storage.

Regardless, vault storage has benefits but also some disadvantages…

Advantages of vault storage:

High level of security: Third-party vaults are designed to be highly secure and are equipped with advanced security features such as 24/7 monitoring, access control systems, and high-strength vault doors. They also typically have insurance coverage to protect your metals from theft, fire, or other damage.
Professional storage and management: When storing your precious metals in a third-party vault, you can be assured that your metals are being professionally stored and managed. This can include regular audits, verification of the authenticity and purity of your metals, and other services to ensure that your metals are being stored and managed properly.
Easy access: Most third-party vaults allow you to access your metals easily and quickly, often with little to no notice. This can be especially important if you need to sell your metals quickly or if you need access to them in an emergency situation.
Diversification: Using a third-party vault service can also help you diversify your storage options. If you store your metals at home, for example, you are more vulnerable to theft or damage. By using a third-party vault, you can spread your risk and reduce your overall exposure to potential loss.

Disadvantages of vault storage:

Cost: Third-party vaults can be expensive. Fees can range from a few hundred to thousands of dollars per year depending on the size of your holdings and the level of service you require. This can be a significant expense, especially if you have a large holding of precious metals.
Limited control: When you store your metals in a third-party vault, you give up some degree of control over your holdings. You may not be able to access your metals immediately if the vault is closed or if you need to retrieve them quickly. Additionally, you may not have complete control over the management and storage of your metals. And that could lead to potential issues.
Counterparty risk: When you store your metals with a third-party vault, you are essentially entrusting your assets to another party. This introduces counterparty risk. That means there is a risk that the vault service may not be able to deliver your metals back to you in the event of a disruption, such as bankruptcy.
Limited physical possession: When you store your metals in a third-party vault, you may not have physical possession of them. This could be an issue for some investors. If you prefer to have direct physical control over your holdings, storing them in a third-party vault may not be the best option for you.

The best jurisdictions for vault storage

If you are considering storing your precious metals in a third-party secure vault, then you’re probably automatically thinking of doing so in your home country. However, you may want to consider storing your precious metals in an overseas vault. This may sound very extravagant or overkill. But, not all jurisdictions are equal when it comes to the treatment of your assets, and that includes precious metals. And, you may be surprised by the relative affordability of storing gold and silver overseas.

Depending on where you reside, an overseas storage option can enhance your privacy and boost protection of your precious metals. Typically, the USA for example, along with many other developed nations have a track record of not respecting privacy and also creating red tape around private assets, not to mention even confiscation of private assets like gold and silver.

SecureMyStuffNow mentions this, because selecting the right jurisdiction to store your precious metals can make a major difference in your security, privacy and even the legacy you pass on!

So, what are the best jurisdictions when it comes to security, privacy and reliability?

Singapore

Singapore is a relative newcomer to bullion vault storage. But it could well have already taken the top spot as the safest, most secure and affordable safe haven jurisdiction. In it’s favour are the fact that it has modern, efficient, and responsive private gold storage facilities. Combine this with low levels of corruption and crime and it’s a convincing formula. Singapore’s private gold storage facilities are more modern than those in countries like Switzerland,. Some vaults even offer online access and photos of stored gold. The country’s independence and security, combined with its well-oiled ecosystem for buying, selling, swapping, and borrowing against gold and silver, make it an attractive option for storing precious metals.

Additionally, Singapore has seen significant innovation in the gold storage industry, with companies like SGPMX offering gold-backed debit cards and allowing customers to start storing gold for as little as USD$20. While an argument could be made for other jurisdictions like Switzerland, Liechtenstein, and the Cayman Islands, Singapore’s innovation and services make it the top choice for gold storage. You will find many positive reviews promoting Le Freeport by the Singapore airport as being the safest and most impressive facility in the world.

Switzerland

Switzerland is a traditional choice for offshore gold storage, with the world’s largest reserves of gold per capita. However, high fees, lack of favorable transaction terms, and decreasing service quality are leading some people to move their gold to other locations such as Singapore or Hong Kong. Although the Swiss government destroyed bank privacy and secrecy many years ago, there are still plenty of gold vaults available, and online gold sellers offer vault storage in Switzerland. There aren’t many advanced options such as leverage or loan provisions. But Switzerland remains a reliable and respected location for storing gold. It has many good facilities to choose from and no currency restrictions. It’s also in the center of the European countries making it an easier option for Europeans to travel to.

Austria

Austria values bank secrecy and financial privacy, making it one of the only places in the world, especially in Europe, where you can store gold anonymously. It may not have impressive vaults like Singapore, or the status of Switzerland, but it offers financial privacy and anonymity. Das Safe is one of the vault facilities, but it’s expensive and may not be the best option. Storing gold in Austria also provides access to other places in Europe, making it a good option for those who value the location of their gold storage.

Israel

The wild card on my list is a country you may not have thought about, yet Tel Aviv is worth considering for international gold storage. Numerous precious metals and logistics companies have a base in Tel Aviv and are well-versed in handling your precious metals.

The country isn’t as well-located as others. However, they do have top notch security of vaulted precious metals. Israel is neutral from a western vantage point – friends with the United States but also with Russia, for instance – and worth considering.

New Zealand

New Zealand is a neutral wealth haven with a very wealth-friendly government, making it a good option for storing gold. The government is unlikely to confiscate gold. Plus, the country’s isolation from the world’s problems and location in the southern hemisphere means there are no major threats. New Zealand also has a developed economy, a solid global reputation, and professionals who can help with offshore gold storage, purchases, and sales. As a common law and English-speaking country, it is a convenient option for many. Despite being part of the Five Eyes government spying program, New Zealand is still a good option for diversifying and storing gold and other assets globally.

Cayman Islands

The Cayman Islands is an upscale jurisdiction for offshore secure storage, but it’s more expensive compared to other competitive options. However, a colleague offers the first six months of storage for free. While the jurisdiction is a British Overseas Territory, it has its own management and is not considered a real threat of interference. The Cayman Islands is seen as a solid jurisdiction and a safer option than Panama as an offshore storage location.

What are the best bullion vault services?

There are many overseas bank vault storage options. Not all are created equal, and you will have to investigate if the cost and service meet your requirements. But if you are considering Singapore, then there are several very good depositories worth considering. I would recommend BullionStar for their service, affordability and cost of entry for fully segregated storage and also their bullion savings program. BullionStar also has depositories elsewhere in the world (USA and New Zealand).

Blockchain Options

Everyone and their dog has by now heard of crypto. Well the technology behind crypto, cryptocurrencies like Bitcoin and Ethereum, is Blockchain. And blockchain has many use case way beyond currency. One interesting area is the use of the blockchain to record, transact, and manage physical assets even gold and silver. This is a twist on the vault storage of precious metals. Rather than having certificates guaranteeing ownership of gold or silver, the blockchain is used to record ownership and transfer of these assets. It also opens up some other interesting options for storing your physical precious metals. One interesting feature is the possibility of earning yields on your precious metals. Typically precious metals do not provide any income at all. They are usually used as money or for storage of wealth and to protect against inflation and volatile financial markets.

But be warned, the crypto space has been a wild west area. Yes, there are many legit, cutting edge entities. But there’s thousands of scammers too. Do your own research. And make sure the tokens you are purchasing are fully backed by physical assets!

I have checked into and used two blockchain services. These are:

Kinesis Money

Kinesis Money is a blockchain-based monetary system that enables users to own and transact with physical precious metals such as gold and silver, using digital tokens. The Kinesis Monetary System is built on the Stellar blockchain, allowing for fast and secure transactions with low fees. Kinesis tokens represent ownership of specific precious metals that are stored in independent vaults and fully audited by third-party firms. Users can buy, sell, or send Kinesis tokens, which are backed 1:1 by physical metals. These tokens can be redeemed for the corresponding metals. The Kinesis Monetary System also includes a yield system that rewards users for holding Kinesis tokens and participating in the Kinesis ecosystem. There could be significant potential with Kinesis Money.

PAX Gold

PAX Gold is a blockchain-based digital token that is backed by physical gold stored in Brink’s vaults. Each token represents one ounce of gold, and the ownership of the gold is recorded on the Ethereum blockchain. PAX Gold allows for the ownership of gold without the need for physical delivery or storage. The tokens can be easily transferred and traded on the blockchain. The gold is regularly audited, and token holders can redeem their tokens for the physical gold if desired. PAX Gold aims to provide a secure and transparent way to invest in and hold gold, with the benefits of blockchain technology.

Advantages of blockchain precious metal assets:

Transparency: Both PAX Gold and Kinesis Money provide transparency to investors. It allows them to view the amount of gold backing each token in real-time.
Liquidity: The tokens are tradable 24/7, and can be bought and sold in small denominations, making it easier for investors to invest in precious metals.
Security: The tokens are secured by blockchain technology, which provides a tamper-proof record of ownership, reducing the risk of fraud or theft.
Accessibility: Unlike physical gold, the tokens can be easily transferred and stored in digital wallets. This allows investors to buy, sell, and store gold from anywhere in the world.
Efficiency: Transactions with PAX Gold and Kinesis Money can be settled instantly, without the need for intermediaries, resulting in lower transaction fees and faster settlement times.
Diversification: Investors can use the tokens to diversify their portfolio. This offers exposure to gold without the need for physical storage or transportation.

Disadvantages of blockchain precious metal assets:

Limited acceptance: These tokens are still relatively new and may not be accepted by all merchants or investors. This could limit their usefulness.
Volatility: While these tokens are backed by physical precious metals, their prices may still be subject to market fluctuations and volatility. This could result in losses for investors.
Regulatory uncertainty: The regulatory landscape around blockchain-backed assets is still evolving. This could result in uncertainty and potentially unfavorable regulatory changes.

Technical issues: Blockchain technology is still relatively new and complex. This could result in technical issues such as network congestion or security vulnerabilities.
Storage fees: Investors may incur additional storage costs to hold physical metals backing these tokens. This could reduce their overall returns.

Home Storage in a safe

Some people will not be comfortable storing their precious metals anywhere but in their own home, where they have immediate access to them. However, this means that you become solely and wholly responsible for them. And, in the home there is a much higher risk of theft, loss and damage of tour precious metals. That’s why you will want to invest in the best possible storage solution you can afford to secure your precious metals. This typically takes the form of a home safe. Just make sure you invest in the one that suits you best.

What kind of safe to use

You’ll definitely want to get a safe that is larger than your current needs. That way you can expand your collection and still have room. You will also want to buy a safe that is fireproof, preferably waterproof, and has a sufficient UL rating, especially if you plan on insuring your metals.

Many safes also have dual locking options that combine a combination and keyed lock. Look for ones with a suitable burglary rating.

Most safes will provide bolts to secure the safe. Make sure your safe has them! This adds significant protection against removal of the entire safe!

Where to install your safe

Make sure your safe is not easily exposed. Concealing it in a closet, under the floor, or in a basement or crawlspace makes it less likely to be discovered.

It’s also important to securely fix your safe in place. Usually bolts are provided. Make sure you use them! It’s best to have bolts installed on at least two side (e.g. through the back and into the floor), and into a solid substrate like concrete. That will make the safe exponentially more difficult to pry loose!

You’ll want to make sure that the space the safe in installed in doesn’t suffer from water leakage or high humidity. Ideally, you’ll want the safe to be fireproof and waterproof as an extra layer or protection.

Here is more information on how to select, install and locate your home safe.

It’s also advisable to store your precious metals in airtight containers. This will help prevent corrosion. The best options are normally tubes. Here are some examples.

Hidden compartments to store gold and silver

Storing gold and silver in hidden compartments is one of the oldest methods of keeping precious metals safe. Drawers and secret compartments are great options for hiding your assets in plain sight. For instance, you can create a secret compartment inside your bookshelf or behind a painting. You can also use a secret drawer inside a desk, a wardrobe, or a cabinet. Just be sure to make the compartment as inconspicuous as possible to avoid attracting unwanted attention. You can even consider having a false-bottom drawer that can be removed with a secret latch, which only you know how to open. Additionally, it is important to ensure that the secret compartment is strong and sturdy enough to withstand any possible threats.

One disadvantage of storing your gold and silver in hidden compartments is the risk of forgetfulness or losing track of where you have stored it. You might also be forced to reveal the secret compartments when you move or renovate your home. Therefore, it is important to keep an inventory of your gold and silver and document the location of each hidden compartment. You may also want to consider a fireproof safe or a safety deposit box as an alternative storage option. Nevertheless, having a hidden compartment can be a great way to store gold and silver discreetly and safely.

Store your gold and silver in plain sight, out of sight

Storing gold and silver in plain sight can be a smart way to deter thieves. That’s because thieves may not expect valuable items to be hidden in plain sight. One option is to use diversion safes. These are designed to look like everyday items such as books, soda cans, or household products. These safes can be a clever and discreet way to store small amounts of precious metals without drawing attention to them. For example, a book safe can be used to store gold or silver coins or small bars, and can be placed on a bookshelf with other books to blend in. Similarly, a can safe can be used to store items in a pantry or fridge, and can be disguised as a can of food or drink.

Another option for storing gold and silver in plain sight is to use ordinary furniture with hidden compartments. This can include things like a desk with a hidden drawer or a coffee table with a false bottom. These types of hidden compartments can be effective at hiding small amounts of precious metals. They can be accessed quickly and easily by the owner. However, it’s important to note that this type of storage may not be as secure as a dedicated safe. It may be more vulnerable to theft or damage in the event of a break-in or natural disaster. Therefore, it’s important to consider the level of security and protection needed for your particular situation before deciding on a storage method.

Burying gold and silver

Bring out your inner pirate by burying it in your garden or a woodland. It could be a suitable option for those who want to keep their precious metals out of sight and hidden from potential intruders.

Advantages to burying your gold and silver

One of the main advantages of this method is that it provides an added layer of security. It makes it difficult for thieves to find your gold and silver because it’s not inside your home. You would need to bury your metals in waterproof and airtight containers to help protect them from environmental factors such as moisture and corrosion.

Disadvantages to burying your gold and silver

However, there are also some potential drawbacks to consider. For example, there is always the risk that you may forget the exact location of the buried metals. Or, the containers could become damaged over time, making it difficult or impossible to retrieve them. Using these tactics has resulted in gold being lost. For instance, a couple in California discovered over $11 million worth of pre-1933 gold coins buried in cans on their land. And, just a few months ago, maintenance workers discovered more than 2,000 silver coins hidden inside the walls of a deceased man’s house in Florida.

Tips for burying your gold and silver

When burying your gold and silver, it’s important to take certain precautions to ensure that they are securely hidden and protected… and remembered! One effective method is to use PVC pipes or other durable containers with airtight and waterproof seals. It’s also important to choose a location that is unlikely to be disturbed, such as a remote corner of your garden or a secluded spot in the woods. Before burying your metals, mark the location on a map, maybe take a photo or video, perhaps tag it with it’s coordinates using your device, and make a note of any landmarks or other identifying features that will help you find it again later.

Secure your gold and silver with insurance

Finally, purchasing insurance for your gold and silver is always a good idea. Homeowner’s insurance policies typically have limits on coverage for valuables such as gold and silver, so you may need to buy separate insurance to ensure that your home storage collection is fully protected.

When purchasing insurance, be sure to choose a reputable insurance provider that specializes in insuring precious metals. They will be able to provide you with a policy that is tailored to your specific needs and offers adequate coverage.

It’s also important to note that some insurance policies may require that you store your gold and silver in a specific type of safe or security system. Be sure to review the policy carefully to ensure that you are meeting all the requirements for coverage.

The Final Score: The best place to store your precious metals

Precious metals can be a dependable part of your investment plan. There are several ways to invest in precious metals like gold and silver. However, if want to own your own physical metals, then protecting precious metals should be a serious consideration. There are several options. These can include a safe deposit box in a bank, but this is only for small amounts. This option means your metals aren’t very accessible as they’re only accessible in bank hours. Plus they are in the banks hands… so make sure you trust your bank!

I personally believe a good solution is to mix the storage of precious metals between a secured fireproof, waterproof home safe and a third party bullion depository. This provides the flexibility and assurance of easy access to metals in your home. But then, keeping a portion in an offsite vault where your assets are protected with high security measures and insured limits the risk of theft, loss or damage. I would even recommend the extreme option of storing some of your metals in an overseas vault. There are options in safe jurisdictions out of the prying eyes of nosey governments. These can be both highly secure and surprisingly affordable, like BullionStar in Singapore. There’s even some more cutting edge blockchain option (PAX Gold or Kinesis Money) you might want to consider. This may be a way to diversify your precious metals holding and make sure they are secured.

In all cases, make sure you do your own research, weigh up the benefits and costs, and be smart and stay safe!