23 February 2013

How to Store Gold and Silver - Options

Before our customers buy gold, there is often the question: How and where do I store my gold?
 
Please read here the following options:

 


1.  At your home or buried in the garden

Some people store their gold in the bedside table or hide it in the house somewhere. There is nothing wrong with that, as long as you feel safe with it. If you intend to bury it in the garden, we recommend the following things:

    
Dig a hole that you intend to bury your gold in and dig it deep, very deep. Bury your gold, cover it with dirt. Before filling the entire hole with dirt put some nails at the top of the hole and cover it with dirt.
 
Then dig a few more holes in the surrounding area, get some more nails and bury them as well. Do that so that the neighbours can’t see you. If you dig at night… make sure you don’t make much noise. Mark and measure the ‘golden hole’ properly in your mind – finito.
 
If ever anyone comes with a metal detector they will probably find the nails instead of the gold.

 
2.  At your home in a safe. 

There are many inexpensive safes available in the market. When purchasing a safe look for the following features:

- protected against burglary and fire
- security against flame cutting
- double-walled door.  
 
Let’s look at a couple of examples. I’m fond of Burg Waechter a German safe manufacturer. You find the English website on www.burg-waechter.com

Burg Waechter Home Safe

This safe on the left hand side is called ‘Karat’ and weighs 43kg = 95 lbs) that
fits 25 litres volume. The safe costs around 450 EUR.  
The features are:  
- security against flame cutting: Body made of stainless steel  
- double-walled door, door leaf thickness 7 mm SM steel
 
The safe shown above can be qualified as a starter safe. If you need something with more security there is literally everything you can think of available.
 
 

Burg Waechter Home Safe

This safe here is called Diplomat 48 E, weighs 94 kilo = 207 lbs and fits 55 litres
in volume. The costs are 2,580 EUR.
 
It features:  
- with integrated fingerscan-module in series  
- protected against burglary and fire  
- fire-protective material in body and door according to DIN 4102-A1  
- body and door double-walled, door leaf thickness 10 mm SM steel  
- security advantage: special protection against drilling in front of each bolt and in front of the lock
 
These are two examples for home safes. If you need to buy a safe, here’s the buyer’s guide:
 
Choose which size you need. How many documents, Jewellery, coins and other valuables you would like to store. Determine how much space you need.
 
Choose the security level that suits you. You don’t need to spend 10,000 EUR for a safe if you only want to store two gold coins in it. If you build a new house consider a wall mounted safe.
 
Choose the lock technology. Some like to have a key, some want a digital lock and others like a fingerprint lock.
 
TIP: When storing silver, make sure you have enough space. Also calculate extra
space for future purchases.
 
 
TIP: Make sure, should you loose your key, that you can change the lock without additional costs of the safe.

 
3. In a Safety Deposit Box 

Depending on the country that you’re in, you can rent a safety deposit box with a bank of your choice. Check with your current bank if they provide the service. In some countries, like the UK, there are several vault companies such as Silver Vaults
(www.silvervaults.co.uk).  

Europe's biggest non-bank safety deposit box facility is an Irish owned company SHAVO Ltd.

They run various facilites across Europe:

Dublin, Ireland: www.merrionvaults.ie
Liverpool, UK: liverpoolvaults.co.uk
Newcastle, UK: newcastlevaults.co.uk
Glasgow, UK: glasgowvaults.co.uk
London, UK: nottinghamvaults.co.uk
Frankfurt, Germany - to open: frankfurtvaults.de

 
This is a very good way to store valuable goods at low cost. A small box is around 150 EUR per annum and the usual rental contract is one year. Our recommended option is to rent a box through a private storage company and not through your local bank.  
 
The two downsides to a safety deposit box are, that you have be physically there to access the box and your goods are not insured. In the meantime some providers do insure, so check out the Storage Terms to be sure.

 
4. In a full Serviced and Insured non-bank Vault  

This solution is the most convenient but also the most expensive.  
 
The process works as follows:  
 
A transport is arranged with valuables from point A to the vault.
 
The goods arrive in the vault. The goods are sealed in a safe bag in four-eye principle from the vault company. A safe bag is a high durable plastic bag with a unique code/number on it (see picture on right). 

Seal Bag

Once the safe bag is sealed it can’t be opened without destroying the seal. The customer receives an e-mail with the seal number.
 
This safe bag gets stored in the vault. Written on the safe bag is the name and invoice number of the customer.
 
The safe bag is fully insured and cannot be opened without the customer’s permission. The rental contract period is flexible based on the customers need. The customer can take delivery of their valuables at any time. An insured courier will delivery the package to the chosen location; personal pick-up is also available. The typical private vault will charge a fee that ranges from 0.5 to 1.2% of the value of the stored goods per year, usually invoiced on a quarterly basis.
 
 
CELTICGOLD offers this service through a reputable private vault company in Germany. For more information please visit "Shipt and Store" in the main menu.

 
5.  Other ways to purchase and store precious metals: Metal Accounts and Unallocated gold etc.

 
Besides purchasing gold/silver coins and bars there are many other ways to buy and store precious metals.

These include:  
 
- Metal account with bank
- Perth Mint Certificates
- ETF’s
- Bullion companies
 
In future newsletters we will provide an in depth analysis of the Pros and Cons of each one of these options.
 
In our opinion none of these options should be considered until you have a core position in physical precious metals.

Author: celticgold.eu

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