So you have bought some precious metals as an investment. But what do you do once you have the metals? Where can you safely store it? This, of course, is a balance between autonomy and amount. If you hold it yourself, someone can find it and take it (individual and government theft risk). If someone else holds it, you are putting a lot of trust in a Third Party. Who do we trust?
Every storage option has some pros and cons. Lets look at them.
1. At home. When it comes to storing your PM’s the choices are many. The first and most obvious choice it to put it “under the mattress” or bury it in the back yard. The pros of storing it at home. In a financial collapse, quick access to money could be a life saver. You know you own it and there is no risk of any shenanigans going on with any fund manager, or technicality or jurisdiction blocking your access to it. It is the most private. If you don’t tell anyone its there, then nobody knows its there. That is the best form of defense against theft there is. And of course, it is free.
The main benefit to home storage is actually the absence of many of the risks associated with storage at any other location.
The cons are that at the stroke of a bureaucrat or judges pen, your home assets can be seized. There are countless stories of peoples bank accounts, home and property seized, due to accusations of tax avoidance, terrorism, money laundering, failure to pay on child support, alimony, or civil law suits. In many totalitarian systems, the government seize your stuff, leaving you penniless whilst trying to hire lawyers to defend yourself against these allegations. The US is one of those governments. I know of many people who have left the United States and other countries, or at least held some of their assets overseas as insurance against that. A prudent option for sure.
At certain volumes it becomes unpractical, and un-easing to have so much wealth in one, relatively unsecure location.
Especially if you manage to purchase without any electronic record of the purchase I think it is the most safe.
2. Bank vault or security box. This is quite simply a bad idea. During financial collapse, banks close and getting access to security deposit boxes in a bank can be impossible for very long periods of time if at all. Its also one of the first places corrupt governments go looking for PM’s if they choose to confiscate the peoples wealth. In addition to this there is obviously a partnership between, the governments and banks of the world. Storing metal there is like asking the thief to mind the jewels. No council member has ever and will ever store PM’s in a bank vault.
3. Non bank vault or storage facility. Outside of the banking system, there are a number of private storage facilities that are reasonably safe.
A genuine storage facility makes its money by charging you fees for storage. There is no chance of a “run” on a storage facility, as there is always enough metal to equal that of the depositors. They very rarely go broke, and if they do, your deposits are on your balance sheet not theirs, so any liquidators do have an obligation to return your assets to you.