Investing in precious metals has become an increasingly popular route. The last two decades saw an extended demand for bullion such as gold and silver. With regard to silver, the shiny metal is a common addition to a number of holdings around the globe. That’s because silver is one of the more affordable acquisitions for investors. In addition, bullion metals have become more accessible for purchase through online dealers and retailers. Secure, discreet methods make this avenue an esteemed option for investors.
Albeit, buying bullion metal is only one step when on the long run. Storage, and storage options are fundamental for an investor. Silver occupies more space than gold in the same weight proportions, due to its lower density. This translates, for instance, to a 1 oz American Silver Eagle being of bigger size than a 1 oz American Gold Eagle.
Investors start to accumulate as their expenditures happen. With such in mind, it is important to protect all acquisitions. The proper measures need to be taken for safety from possible threats. Buyers should know the possible options on how to store silver bullion.
Bullion Storage Options
The purchase of silver or other precious metals is only the first step. One vital aspect of bullion metals investments is proper storage. Investors should take into consideration the total size of their holdings, as well as risk-management measures. According to these factors, you can determine what option is best for your needs.
In addition to it, an investor may use more than one method for storing their silver bullion. Their approach is entirely reliant on their portfolio’s size, possible regional risks, as well as personal preference. The listed options include SD depository storage, bank storage, and home storage. Let’s look at each one…
1. SD Depository Storage
Should you need a secure storage choice for precious metals in a different place than your home, consider SD Depository. As well as conducting sales for millions of ounces of silver and gold bullion, SD Bullion offers a way around accumulation.
SD Depository is a fully-insured non-bank bullion depository, offering secure and discreet storage for precious metal owners. Its benefits include the option for customers to take delivery of their owned stored metal at any given moment.
On top of that, all personal holdings are allocated to a fully segregated storage in the buyer’s name. Therefore, all bullion that is shipped in is exactly what the owner can get shipped out upon request.
SD Depository’s priority is customer safety and assistance. This direct and secure bullion storage option is easy to start an account. There is no minimum amount of metal needed to open storage.
Bullion owners that set up their accounts also have the benefit of adding other physical metal to their new storage. Besides, selling bullion stored in your account is simple.
2. Bank Storage
Banking institutions offer safe deposit boxes at rent for customers. They can be an option for bullion storage. As a result of their monetary nature, dealing with financial and investment matters, an investor may turn to a bank to store their holdings.
However, storing bullion in a bank presents a number of issues that a precious metal owner should be advised to.
When it comes to insurance, experts tend to avoid banking institutions. Their safe deposit boxes are not FDIC insured. An owner may be at risk should the unfortunate event of a theft occur. Separate insurance policies might come into play, though not offering the guarantee of recovering the total value of your holdings. Such possible risks need to be taken into consideration as a means for safekeeping in the long run.
A major concern also mentioned by seasoned investors regards possible conditional factors. Bullion stored in a bank may be subject to freezes and confiscations, such as tax debts, penalties, court orders, and others.
Vulnerability to crashes in the financial world and the so-called “bank holidays” also come into play. The risk of not having access to your bullion storage when you may need it or want it the most also comes into play.
3. Home Storage
Bullion storage at home is one of the most popular options for investors. A private property offers control over your silver holdings. Owners of smaller to medium-sized silver holdings choose to hide their bullion at a determined spot.
By the same token, investors need to be aware of the possible risks regarding this method. Environmental damage can be avoided as long as the metal is stored in secure places. This can be accomplished through storage in secure compartments, such as a safe. Avoid high levels of humidity, and damp locations. The use of desiccant packets is recommended as a prevention method.
Given that silver oxidizes when not properly stored, it may reduce the metal’s worth should that happen. Storing gold and silver together should be avoided, since it may damage the pieces as well.
To prevent themselves from possible theft, buyers should think of creative spots to hide their safe or bullion. If stored at a place out of the ordinary, thieves will most likely have trouble finding your hidden storage. Experts also advise to have a second, decoy safe, with content you’re willing to let go should a theft occur. There are countless different options for home safes that should fit every investor’s needs.
Common places people choose to hide their bullion are inside furniture, under floorboards, mattresses, inside wardrobes, drawers, and other similar options. On the whole, it comes down to personal preference. Every house or location may suit a better option compared to another. Just remember that creativity is key.
In general, safe stored silver bullion is the one that tries to avoid environmental damage and potential theft. The proper measures are the best tool for an investor. After all, in the long run, silver in good conditions is sure to maintain its value and fulfill your investment needs.
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