Wednesday, March 3rd, 2021

Gold Storage Facilities: How To Safely Store Your Gold


Gold storage facilities are a safe and secure way to store your gold bullion holdings.
For small quantities of gold a home safe can suffice but taking delivery of larger quantities necessitates the need to organize transport, safe gold storage and insurance. If you are a serious gold bullion investor then you will need something a little more substantial than just a home safe. So what are the options? Gold vault storage facilities are commercial enterprises or, in some cases, mint gold storage programs are offered as a separate division of a mint whereby the gold ingots are stored on premises on your behalf.

Gold Storage Facilities

Gold Storage Facilities

Mint Programs are safe but do they provide the flexibility you need?

If you opt to use a mint program for the storage of gold you will need to setup an account through an authorized dealer network. Whilst the services that are offered are often adequate for long term investors who want to store the gold securely, for individuals that want to execute numerous transactions to build their gold holdings or to sell on a short term basis, the process can be cumbersome and time consuming. You may face entry and exit fees into the program or be subject to wider bid/ask spreads when you buy and sell. This may be factored into your cost structure if you are a long term investor who is willing to absorb these costs and you do not want to regularly add to holdings or buy/sell on a short term basis. If you fit this profile then contacting your local mint is a perfectly acceptable way to go and the security in place is more than adequate for safe gold storage.

Logistic Costs and Quality Considerations

If, however, you plan to purchase a large quantity of gold and to take delivery outside of a commercial based program there are separate gold storage issues you may need to consider. Firstly, you will need to organize secure transport to take delivery and relocate the gold to your chosen premises. This will most likely involve organizing an armored vehicle and security personnel. Secondly, if you ever plan to sell the gold again you may need to subject the gold to a commercial grade verification process to test the gold for authenticity and purity. Bank gold vault storage costs will also need to be factored into your transaction if you use a commercial grade bank to safely store your gold.

Due diligence and Gold Storage Facility Risk

Of paramount importance to your gold storage is the legal structure and obligations you are subject to. Under some storage arrangements, the institution that you entrust the gold to is actually considered the physical owner of the gold. Should this institution experience a disruption to business or collapse due to systemic risks, you may find that the gold becomes the property of creditors before your entitlement. Some of the newer online operators actually have the legal structure in place to ensure that should their operations fail your gold still belongs to you. This is known under English law as “bailment”. It is important that you conduct due diligence on the operator so that you know your rights and obligations regarding your gold ownership before engaging any transaction.

Safe & Easy Online Gold storage programs

Online gold bullion operators now revolutionizethe way to buy and sell gold bullion.
The ability to buy and sell gold bullion at the click of a mouse provides speed, flexibility and versatility. The newer online operators actually compete with the trader by providing the ability for all traders to quote the best buying and selling prices. This introduces competition which narrows the bid/offer spreads and saves you money on your gold transactions. Furthermore, you may also have the option to transact in multiple currencies (US Dollar, Pound, Euro) with a choice of different storage locations (New York, Zurich, London) with adequate insurance protection in place and a legal structure (choice of jurisdiction) that ensures that your gold remains your property and is protected under law. If you prefer to have maximum safety and protection for your gold with a high degree of transaction flexibility then buying gold bullion online can be a convenient way to go.

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