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How To Store Gold Coins And Bars?

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giant safe

How To store gold coins and gold bars? Do you need to have a big underground safe at home?

So you have understood that investing in physical gold is the way to go. Next question then is how to store your gold. With this blog post I want to answer the questions of how to store your gold coins and how to store you gold bars.

Knowing where to store your gold has been a problem for a very long time. Trying to solve this problem was actually how we came up with paper money (the paper dollar bills on your wallet).

I thought that would be an interesting thing to go over shortly first. I apologize for this “fun” fact and if you want to get straight into where to store your gold just scroll down to the next heading. But I think you will really enjoy it.

Why do we have paper dollars in our wallets?

In the beginning of time most trade were done using gold coins. I’m sure you’ve seen movies where the people carry around a pouch of gold coins. These actually contained physical gold.

People were always a little bit afraid to carry their gold coins with them and it also wasn’t too practical. It was a bit heavy so they thought that there has to be a better way. The solution was to deposit your physical gold at a big institution that had a big vault. Yeah you guessed it, banks.

Now you didn’t have to carry around the “heavy” gold and you didn’t have to worry to much of being robbed.

Once you had deposited your gold into your bank you got a note back from the bank. A gold certificate that said how much gold you owned. After a while when the people had started trusting these bank institutions they actually started to trade with their gold certificates. Instead of having to walk to the bank and get some of your gold when you wanted to buy something you just gave the other person your gold certificate.

Then he could either go cash it in for gold or use that same certificate in trade as well. The longer the time went the more people started to trade only in these gold certificates, so the banks realized that nobody ever came to claim their physical gold.

This opened up a huge opportunity for the bankers. Because everybody now saw these gold certificates as real gold they could just print more of them and go buy things. Say that a banker wanted to buy a house. He could print these gold certificates and pay for his house. The owner of the house would gladly take these gold certificates because it’s just as good as gold right?

So the currency you have in your wallet use to be gold certificates. If you look at old US dollar bills it will say that it’s a gold certificate. Basically you could take your gold certificate (dollar) and walk into any bank and trade it in for physical gold. Look at the note below and you’ll see.

old 20 dollar note showing gold standard

Walk into any bank and slap down this $20 note (gold certificate) and get physical gold back.

In the late 1960 people started to realize that the US printed more gold certificate (dollars) then the had gold in their vaults. This created a panic and lots of people and countries tried to exchange their paper dollars for gold. This was about to drain Fort Knox of gold so president Richard Nixon had to stop the convertibility in 1971.

Now the dollar was not backed up by anything. Now it’s a certificate of trust. You have a certificate that you trust the US government to keep the value stable on the dollar. These type of currencies (certificates) are called fiat currencies. There has been thousands of fiat currencies throughout the history and they all have one thing in common.

They all went to ZERO. Became worthless. Because it’s just paper, just like monopoly money is.

This is why we will see a currency crisis in the US dollar soon. If not then the dollar will be the first fiat currency in the world to survive. And I don’t think so, it has been tried thousands of times and failed every time. The dollar will also fail.

So don’t hold the certificates. Hold the actual physical gold in your possession and you will be 100% protected from the coming currency crisis.

Okey, I get it. So how do I store my Gold?

If you read the “fun” fact about how our paper money comes from trying to solve the question of how to store your gold then you might have an idea where I will go. If not, let’s look at the different possibilities so you later on can decide what fits you best.

In a safe deposit box

safe deposit boxes

Safe deposit box. Not as safe as you might think.

Many people often think of a safe deposit box as a “safety” deposit box which is wrong. It’s a box where you can deposit things that are kept in a safe at the bank. Therefore it’s called a safe deposit box.

People often think of a safe deposit box to be the best place to keep your gold and silver. I would disagree and here is one of the reasons why.

During the terrorist attacks at September 11, 2001 gold rose 9% and silver rose 11%, but if you kept your gold in the bank you couldn’t get to it. The stock market was closed during that week and so were the banks. The ATMs quickly ran out of money. So during the time where you really needed to get to your gold you couldn’t.

If you would have had the gold in your possession you could have walked into a precious metals dealer and traded in your gold for $100 bills to buy food, gas and the other necessities that you need but was hard to get during that standstill. During a crisis like this it’s very important to have some physical gold in your possession so you can still put food on the table for your family. That’s why gold is seen as a safe investment.

Another important thing is that safe deposit boxes are actually not insured. Most people think that the government or the banks insurance will cover it, but it doesn’t. Any bank robbery or other things and your gold is gone.

The most important thing when you invest in physical gold is that your investment becomes completely private. Nobody knows about it and it’s outside of the financial and banking system. But if you choose to store your metals with a bank you’re exposing the most private of investments to the most public financial and banking system and all the laws that governs them.

Store it at home

a personal safe to store gold in

Storing your gold at home is fine if you hide it. If you want even more security, consider a safe.

Lots of people think that this isn’t a good idea. There is nothing wrong with storing your gold at home if you don’t have millions in gold. Gold stores a lot of value in a very small amount of space so I’m sure you can find a safe place in your home where you can hide it.

Remember, nobody knows that you have this investment because it’s outside of the financial system. So no burglar will come knocking on your door asking you to give up your gold.

If you have a lot of gold at home maybe you can consider a safe (definitely not a must) . Talk to a safe expert close to you to get that sorted out.

The beauty of having the gold at home is that you have it in your possession. So if a thing like 9/11 happens, or anything else that will shut down the banking system, you can still get to your gold. That way you have value and can buy all the necessities to survive.

Also remember that when you have your gold at home you don’t have any insurance on it. So if you lose it (don’t know how that would happen) there is nothing you can do. A great thing is that gold and silver melt at a very very high temperature. So they would survive a house fire.

Segregated Vault Storage

brinks armored truck

Highest level of security. The gold that you store is yours and can be delivered whenever you want all around the world.

This is the highest level of security available. These are companies like Brink’s which are the ones that got armored cars that deliver money to the banks. These companies are not part of the banking system and are not operating under the same laws. So during 9/11 these vault companies were still open.

Once you have brought them your gold and silver it will be accounted for by two parties under video surveillance. After that it is sealed in a box and put away. When you call up 10 years later and ask for your gold back you actually get exactly the same gold as you put in your box.

The gold is allocated to you and is not an asset of the vault storage company. This means that if the vault would file bankruptcy or close for any other reason the gold is still yours.

This can be a good idea if you have a lot of millions in gold that you want to store with the highest security available. Obviously you have to pay a storage fee for this.

Final Thoughts

I hoped you enjoyed the little fun fact of how the answer to the problem of how to store gold coins was how paper money got created.

It’s okey to store you gold and silver at home. Just hide it. Because the gold is not part of the financial system nobody really knows that you own the gold. If you have a lot of gold you might want to consider a safe.

Be careful if you want to store your gold at a safe deposit box in a bank because it’s not insured and it’s part of the financial system. In case of an emergency where you need to get a hold of your gold you most likely will not be able to.

If you have millions of dollars in gold you might want to consider a segregated vault storage. This is the highest security you can have for you gold holdings but it comes with storage fee’s.

I hope you found this post helpful and if you have any questions or input please leave a comment. Now that you know that it’s okey to store your physical gold at home, are you ready to start transfering declining paper dollars to hard physical gold bullion?


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10 Comments

  1. Hi Marcus,
    I actually really liked your article. It was very interesting and I loved the story on how the paper money came to be. Pretty scary really…..makes me want to go out and slowly start buying gold to keep stock piled. Because you are right, our money is not backed up by anything right now, just our trust in our government. I am glad I stumbled across this website. Thank you for sharing! It was very interesting!

    • Thank you very much for the comment. Yeah it’s a bit scary because when you look at history you will see that the system that we have now have been tried so many times before. This is not the first time that we have a currency that isn’t backed up by anything. And these systems never work. They always fail.

      By buying gold you are placing your money outside of the financial system. So when this inevitable currency collapse takes place you and your gold will not be that affected. I think going out and buying gold/silver as a savings account every month is very smart. That’s what the richest investors in the world are doing right now so why not do the same thing?

      Thanks again for your comment.
      Marcus

  2. Hi Marcus! That’s an awesome story on how paper money came to be. I didn’t know that! Such an interesting story. I’m interested in buying gold bars but I have a question. I live in Canada but may plan to migrate to another country in the future. If I have physical gold, would I have to pay any taxes or duties to bring it out to another country? I’m guessing doing so electronically with e-gold would be no problem but not sure how it would work for physical gold bars.

    • Hi Andy and thanks a lot for the comment. Glad you liked the story, it’s something that I think they should teach us in school.

      It depends on what country you will bringing in your gold too. I know Sweden for example have a tariff tax on physical gold. So once you bring it over you will have to pay the “import” tax. Some countries have no tax on gold and silver.

      Your right, when you do it electronically you don’t have to worry about the tax. What I would do if I were you is to check with the country that you are moving to what the laws are because they are all different. Every country will have a customs email address that you can contact and ask your question.

      I have heard about horror stories where customs have taken the gold from people. Saying that “your not allowed to import this so we will take it”. Because remember, the government hate gold. Gold is the competitor to the paper money. The more people that invest in gold the more people have lost their trust in their government. And that is obviously not something that the people in power wants.

      So do a lot of research before you move your physical gold.

      Marcus

  3. Now, I’d love to invest in some gold and silver; however, I am skeptical of the banks due to reading about the non-existing insurance coverage. But, I could simply purchase a safe of my own, which could possibly do well (until I get robbed Ha). But, all in all, a great read.

    • Hi Jas, thanks for the comment.

      Yeah I’m very skeptical of the banks as well. Wouldn’t even trust them with 1 dollar of my investment money. What I use the banks for is to pay for my expenses. All of my money that I want to invest or save is going as far away from the banking system as possible.

      That’s what I meant. Store your gold at home. You can store a large amount of value (“money”) in a very small space with gold. So it will be easy to find a place to hide your gold at home. But if you want, buy a safe to have it in at home.

      Marcus

  4. Wow, Marcus, this is very interesting. All I have is a few rings and I’m not sure where they are right now. But one question stands out for me on this post: if my gold is stored at home it is not covered by my home insurance? As you say, it can’t get burned in a house fire, so that’s good, but if it gets stolen it’s not covered by the average policy? My ex was thinking of buying gold and I am not sure if he did it, or where he keeps it if he did, but I will surely tell him to read this page about where to keep it! No way he has an home insurance policy that covers that, I’m guessing!

    • Thanks for the comment Sandy.

      If you want your gold to be covered you would need to get a specific insurance policy like you said. And that way you have now told everybody that you own gold. So if the government restricts ownership of gold again (like they did in 1933) you will be an easy target for the long arm of Uncle Sam.

      If you gold would be stolen you would loose it. It’s a misconception we have today that all our money is “insured”. Because of a thing called fractional reserve banking (google it) the banks are only required to have around 5% of their customers money in the vaults. The rest the can loan out to make more money. That means that if 5% of the people from a bank decides that they want to take their money out. The bank collapse and 95% of the people will get left with nothing.

      I think that’s a bigger possibility than someone coming into my house. Knows that I have gold and then finds it. This is obviously not a very likely situation. This would be worst case scenario and you just have to factor that into your risk. But like I said, also think of the risk of keeping your money in the bank.

      Marcus

  5. Hello Marcus,
    another good article about gold. I like your historical review about the change from a gold certificate to paper money. The funny thing is, that they still print the real value on the paper: “In God we trust”.
    You mentioned the segregated vault storage as a secure storage. Yes, it can be, but you should keep in mind, that the government might restict the ownership of gold, like the United States did in the 1933. Therefore I agree with your statement to keep a small under your roof.

    • Thanks a lot Bernd.

      Yeah your right and how funny is it that our coins are still gold and silver colored? They try to fool us because they know that humans instinctively knows that gold and silver are valuable. So if they could just take a cheaper metal and paint it gold unfortunately the people will fall for it.

      Your right, I’m not sure exactly how it is with segregated vault storage if they are demanded to give out the information that you own gold in case of a restriction of ownership. But to be on the safe side, I suggest that you store it at home.

      Marcus

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