• FREE Shipping & Insurance on Orders Over $500
    FREE Shipping & Insurance on Orders Over $500
back to top

Secure Gold Storage: What Are Alternatives to Deposit Boxes?

Pile of gold on wood

Did you know you can get the Sprott Money Monthly Wrap Ups, Ask The Expert, 

special promotions and insightful blog posts sent right to your inbox?

Sign up to the Sprott Money Newsletter here. 


Did you know that Goldman Sachs lifted its estimate price for gold to $2,500 per ounce in 2022, citing a "perfect storm" of growing demand from investors and central banks?

Even though gold no longer serves as a backstop for the US dollar (or other global currencies), it remains significant in today's culture. The world economy still depends on it and investors still swear by putting their money into precious metals.

But, apart from where you should buy your physical gold, a significant concern will be how and where you should safeguard your precious metals. How safe is a bank deposit box, and will you lose your assets if your bank goes bankrupt? And, what about storing your precious metals in your home where theft can be an issue? 

Also, in times of political turmoil, there is a growing concern about government reach and bank freezes or seizures of personal property and investments. These are all important things to think about when choosing a storage solution for your assets and looking for alternatives to a bank or safety deposit box.

In truth, there are only three options for precious metals and gold storage. You can store your assets at home, use a bank deposit box, or keep it at a depository in a secure vault.

Yet, there can be some drawbacks to a few of these options. We'll go through each one in detail in this article to help you determine which one is ideal for you.


What Are Your Options for Gold Storage?

When it comes to storing expensive valuables such as gold and precious metals, you generally have three options: your house, a safe deposit box, or depositories with a secure vault. Choosing between them has to do with your personal preference. While home storage and safe deposit boxes are both suitable storage solutions, most investors choose secure vaults in depositories.

The main aim of depositories is to store and secure gold and other precious metals. They provide theft and natural catastrophe insurance for all valuables stored on their grounds, which is a great feature that distinguishes them apart from the other two options. Furthermore, these institutions have independent audits of the cache they have on a regular basis.

Depositories provide the greatest protection for the significant assets they hold. Depositories provide private vaults, 24-hour monitoring, blast doors, metal detectors, biometric scanners, and security systems. Besides, they also provide armed security officers on the premises. All these safeguards are in place to secure and protect the assets kept there.


Storing Your Gold at Home

It's no secret that one of the most crucial components of owning silver, gold, and precious metals is assuring secure and safe storage. Some people prefer to keep their precious metals at home.

There are a few things to consider if this is your decision. First, you must ensure that your precious metals, like gold bullion, are being stored correctly, free from moisture and corrosive materials.

The second point to think about is insurance. Do you have enough homeowner's insurance to cover your valuables?

The third thing to think about is social awareness. The fewer people who know you have precious metals in your home, the better. To avoid any problems, make sure you don't provide too many details to someone you don't trust.

You do not want to draw unwanted attention. Of course, there are certain advantages to using home storage, particularly for those who like to keep their possessions close at hand.

Advantages of Home Storage

There are certain benefits to storing precious metals at home. Your gold bullion and coins are accessible with ease, and they are within your reach. If you think you'll need them in a crisis or want to enjoy your collection, keeping them accessible is a good idea.

When you keep gold at home, you only have to trust yourself. You don't have to rely on anyone else to handle your precious metals, whether it's a bank or a private company.

However, before bringing your gold home, you should think about the drawbacks. Especially, if you want the ability to sell your bullion in a hurry if the price rises.

Disadvantages of Home Storage

There are a few disadvantages if you are looking to store your valuable bullion at home. Let's take a look at a few:

Home-Based Assets are More Difficult to Sell

You'll need to find a reputable physical gold store to sell your home-stored precious metals, which isn't always straightforward. For starters, physical gold stores have limited operating hours.

Second, they will have to evaluate and determine the worth of your gold before buying it, which will take some time. Third, you should receive numerous estimates before selling because bids may differ. If you are prone to reacting to market fluctuations in a quick manner, keeping gold at home may not be the best decision for you.

Gold Theft is More Likely to Happen

You may need to take further security precautions to ensure that your wealth is well hidden and shielded from prying eyes. That's why people who keep actual precious metals at home often buy a safe and purchase supplemental insurance.

Damage Protection Is a Must

To maintain precious metals in good condition in your house, you'll need to take certain precautions. Because of the malleability of gold and the tarnish-prone nature of silver, you may need to spend money on protective layers (tubes, boxes, etc.) and additional handling and cleaning materials. 

There Is Always a Risk of Loss

There's a good chance you won't be able to locate the precious metals like gold, silver, or platinum, that you or your family once hid in your home. It could be a little, hidden safe that no one knows about or gold bars hidden behind sheetrock that no one can find. Some people opt to store their precious metals with private companies which provide secure vaults to avoid the trouble and risks that home storage can bring.


Advantages of Storing in Bank Deposit Boxes

Banks provide secure storage and have high regard as a haven for your assets. The valuables you keep in safe deposit boxes are safeguarded from theft, damage, and loss in most circumstances.

A safe deposit box can be a pretty inexpensive way to store your valuables. Their costs vary based on your location and the size of the box you need.

Disadvantages of Storing in a Bank Deposit Box 

Storing your assets in a safe deposit box may seem to be the way to go. It is the first option that some people think of. But, there are disadvantages to storing your precious metals in your bank. Here are a few things to think about before deciding to get a safe deposit box:

Banks Can Go Bankrupt

After years of dealing with coronavirus, Americans are aware of the financial impact that can happen overnight. We had record unemployment, broken supply chains, and failing small companies. All these issues are substantial, and they might plunge us into a deep, long-term recession.

However, there is another economic threat. It has to do with major banks, and it has the potential to be disastrous. Imagine waking up one morning to find the financial industry has collapsed? 

There's a chance your bank will go bankrupt. Even huge banking institutions are not immune to bankruptcy, as we learned during the 2008 financial crisis. If your bank goes out of business, you lose access to your gold and precious metals. You could lose everything.

Not Always Safe

Every year, a few hundred clients report missing precious valuables from their safe deposit boxes, including art, mementos, gems, jewelry, rare coins, and piles of cash. The customer is often to blame. People remove things and then forget about them.

Others give their spouse or child access to their safe deposit boxes, unaware that they are removing items. A customer will rarely retrieve more than a tiny fraction of what they've lost, even when a bank is at fault.

Many banks can avoid liability when assets become damaged or disappear. This is due to a combination of inadequate laws and customers who don't read the tiny print on their box-leasing agreements.

Restricted Access

Your chance to get to your assets has its limits due to your bank's operating hours. How can this affect your precious metals access?

Imagine that, one Friday in the late afternoon, there is a significant price change. You decide that you want to sell your bullion for a profit. If you can't leave work before the bank closes up for the day, you'll have to wait until Monday morning, at the earliest, to get your bullion out and transport it to a dealer.

All this takes time. You can miss the right moment to sell as it may have passed you by.

Expensive Insurance

Many consumers are unaware that it's not the norm for banks to ensure safe deposit boxes. You will need to purchase separate insurance, which may be pretty pricey if you want to feel safe and secure.

Keep in mind that cash in a safe deposit box isn't insured by the Federal Deposit Insurance Corporation. Your cash must be deposited in an eligible deposit account, such as a savings account, checking account, or CD, to obtain FDIC insurance. 


Advantages of Storing in a Secure Vault

Unlike storing your assets in a safe deposit box, depositing your bullion in a secure vault generally provides you with direct ownership and access, as well as excellent security and insurance. With a secure vault, it's simple to sell your bullion or precious metals at any time.

You can even have the funds wired to your bank account, no matter where you are in the world, on the same day. A secured vault is completely safe and insured.

Secure vaults are fully insured and subjected to frequent, independent third-party audits. You can obtain deliveries at any time by storing your assets in a secure vault. No matter where you are in the world, your gold and silver can be shipped or delivered to you overnight or within a few days. 

Vault Storage is the Best Bet 

Gold and other precious metal valuables are better protected in depositories with vault storage facilities. These safe places for your precious metals have only one purpose, and that is to safeguard your treasure.

Increased security levels and attention are taken to secure your assets are a result of their design. In addition to 24-hour security, these assets get stored in a climate-controlled environment, which protects them from heat-related damage.

Another advantage of storing your precious metals in a depository is that these companies guarantee the assets they hold. This service is perfect for customers who want the peace of mind that their assets are being physically protected while also avoiding the high cost of privately insuring their possessions.


Precious Metals Storage

There are a few ways to store your precious metals in a safe and careful manner. Again, the alternative you choose is determined by several circumstances, including your initial motivation for buying your precious metals. Some people prefer the convenience of home storage, whereas others choose the security and safety of a bank vault in a depository.

How to Store Gold

The ideal place to keep your precious metals and gold storage is entirely dependent on your specific needs. It can feel like a huge decision, because it is. Are you still trying to decide what storage method is right for you? We can help!

Your precious metals will be stored in safe, insured facilities throughout the United States, Canada, and the world. Moreover, your precious metals are kept segregated from those of other clients. 

We'll also assist you in increasing your precious metals holdings, regardless of the size of your investment. We're here to help you with your questions, assist you in any way, and provide valuable precious metals knowledge. Contact us, or check out our About Us section for helpful information.



Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More

Looks like there are no comments yet.