Are you considering investing in gold? You’re not alone. Gallup ranks gold as the third most popular investment choice, right behind stocks and real estate. It’s an excellent hedge against inflation, but it comes with a unique challenge: where do you store physical gold? Learn about all your options like home storage, using a bank safety deposit box or paying for a third-party storage facility.
In times of economic turmoil, uncertainty, and global conflicts, gold gives investors peace of mind. As of this writing, at $3400/oz many investors consider gold a smart choice. The million-dollar question isn’t just whether to buy, but where to store it.
With over 40 years of experience, we’ve worked with countless investors who have the same question. That’s why we’ve written this guide to storage options for your precious metals. Our customers might use home safes, bank vaults, or specialized depositories. We’ll cover why investors prefer one option over the other and the pros and cons of each.
The value of physical gold
Investors turn to gold as a wealth-protection strategy. A recent post in Reddit’s r/RichPeoplePF shares: “Gold is a popular hedge when things go wrong because it holds global value with no direct correlation to any one currency.”
Since ancient Roman times, people have used physical gold bars, coins, and bullion to hold wealth. Conser that just one gold bar is worth $2500 in today’s market. It takes up so little space, it’s portable, and every country across the world recognizes gold.
Compare this to paper assets like mutual funds or crypto. You don’t actually hold the asset, and currency issues or cybersecurity hacks might wipe it out.
Best places to store gold?
Now that you want to buy gold, the next step is figuring out where to store it. Gold and other precious metals are heavy and may need specific storage solutions, depending on how much you own. Here’s a quick comparison of the options for secure storage:
| Storage Option | Pros | Cons | Tips / Notes |
| Home Storage | Immediate access, full control, no fees, high privacy | High theft risk, insurance issues, possible resale concerns, requires space and setup | Use a fireproof safe, install a security system, get floater insurance |
| Professional Storage | High security, insured, 24/7 access, expert handling | Storage fees, limited access, reliant on third parties, less privacy | Choose a trusted depository, review insurance terms, consider access needs |
| Bank Safe Deposit Box | Secure, cost-effective, accessible during bank hours | Not insured by FDIC or bank, third-party risk | Understand insurance limitations, verify bank policies |
| Diverse Storage | Reduces total risk, flexible, improves access | Complex to manage, higher overall costs | Plan for logistics, track where assets are, budget for extra costs |
1. Home storage
You can store your gold at home. Some of our customers prefer this route because they want quick access in case things go south. If there’s a major attack, a cyber event that shuts down the banks, or if “SHTF”, they want to know they can quickly and easily grab their gold.
They’re preparing for situations where financial systems fail, or they need to travel quickly and having their gold close by gives them peace of mind.
Pros
Control and accessibility: You always have immediate access to your gold and have complete control without relying on third parties.
Cost savings: You won’t have storage fees and will avoid transportation costs for moving gold to and from storage facilities.
Privacy: Home storage offers more privacy because fewer people know about your gold holdings.
Cons
Security risks: You increase your vulnerability to theft, burglary, and potential loss from natural disasters such as fires, floods, or earthquakes.
Insurance: Home insurance doesn’t automatically cover precious metals, so you’ll need to look at other options to protect your investment from risk.
Resale difficulties: Gold stored at home may lose market integrity and resale value. Buyers might question the quality of gold stored outside professional storage. The good news for Swiss America customers is that we buy back your gold so this may be less of an issue for you.
Space and security requirements: You may need to buy a high-quality and possibly very large safe and modify your home to have it installed.
In the r/Gold forum,one Reddit user shared their experience of a break-in shortly after purchasing bullion:
“I started stacking bullion in September 2023, focusing on online purchases from Costco. However, around mid-October, my home was broken into, and valuables were stolen. Is it irrational to suspect that someone from Costco could have been passing information about customers purchasing bullion to thieves? I live in Ontario, and the police believe the break-in was random. Interestingly, this incident occurred during my first trip to the office in 7 weeks. It’s worth mentioning that my purchase was only 6 oz of bullion from Costco, so it’s not as though I had $100,000 in bullion at home.
Few pieces of advice: don’t ever think it’ll never happen to you, clearly understand your insurance policy, and keep your stack spread out.”
So while storing gold at home is appealing, be sure to have security measures and be careful who knows that have you bought gold.
Tips for storing gold at home
If you want to store your gold at home, here’s what to do:
Home safe: Buy a high-quality, fireproof, and waterproof safe to store gold at home. Bolt it to the floor or wall to prevent theft.
Security system: If you keep gold at home, it’s a good idea to install a home security system for extra protection.
Insurance: Check out options like a floater insurance policy or a personal property endorsement to protect your gold assets.
2. Professional storage
If you don’t want to store your gold at home, you can always pay someone to look after it. There’s a number of precious metal storage companies that offer specialized options. These depositories have a few pros and cons.
Pros
Security: Depositories have advanced security like surveillance, alarm systems, and restricted access. Many provide insurance coverage for stored items so you can get additional protection against loss or damage.
Convenience and accessibility: Proper gold storage facilities give you 24/7 access to stored items.
Expert handling: Professional storage often includes expert handling of precious metals.
Cons
Cost: You’ll have storage fees on the amount and duration of gold storage. Additional costs may include transportation, insurance, and other services.
Limited control: Storing gold in professional facilities means giving up some personal control. You may have limited access to facility hours or need to provide advance notice.
Dependence on third parties: Some investors may be concerned about relying on a storage facility for the safety of their gold.
Privacy concerns: Storing gold in professional facilities may require disclosing ownership, which could be a privacy concern for some.
3. Bank safe deposit box
We have some customers who choose to store physical gold in their bank’s safe deposit box. Pros and cons of this approach include:
Pros
High-level security: Banks are highly secure places with strict security measures, surveillance, and controlled access, providing peace of mind against theft, damage, and loss.
Affordable: Safety deposit boxes aren’t that expensive, so keeping your gold here can be a cost-effective option for secure and safe storage.
Accessibility: The bank might be close to you and you can access your gold bars or coins during regular bank hours anytime you want.
In the same r/Gold forum, Reddit user SadElderberry7250 discusses how they use their bank safety deposit box as an alternative to keeping gold at home:
“I agree that a safe deposit box is the safest way to hold. I have mine in the bank and take out one when I need some cash.”
Cons
Not FDIC-insured: Even though you decide to store physical gold in a secure vault at the bank, the FDIC does not cover the insurance for these assets. You’ll still need to buy your own insurance to protect your gold coins or bars.
Not-bank insured: The bank also does not cover your gold and silver assets under their insurance policy.
Third-party risk: There’s a risk of losing access to your gold if there’s a bank failure or bankruptcy.
4. Diverse storage
The term “Don’t put all your eggs in one basket” applies to all investment strategies, and gold storage is no different. Diversified storage means storing your gold in multiple locations. You might have some at home and some in a depository.
Pros
Reduce risk: Spreading your assets across different locations reduces the risk of total loss due to theft, natural disasters, or other unforeseen events.
Flexibility: This storage solution means you can combine home storage, bank safe deposit boxes, and private vaults as options based on your budget or personal preference.
Accessibility: Storing metals in different locations can provide easy access if you need it in the future.
Cons
Complexity: Managing multiple storage locations is more work for you and can be complicated and time-consuming.
Increased costs: Using multiple professional services could mean that you have higher storage costs.
Precious metals IRAs
All of our discussion so far has been about storing your gold outside of a retirement account. If you invest through a precious metals IRA, the IRS requires you to store your physical gold, silver, or platinum in an off-site third-party facility.
You can’t actually take possession of the gold until you reach the age of 59 ½.
And yes, it’s a bit of a drawback if you want to have easy access to your gold, but there are many advantages of precious metals and Gold IRAs:
Advantages of a precious metals IRA
Most of the time, people think about traditional assets in retirement accounts. But, if you use a self-directed IRA, you can invest in alternative assets like real estate, crypto, and gold.
So you get all the advantages of retirement accounts like tax-deferred or tax-free growth, depending on the account type. The reasons we see investors choose to add gold to their retirement portfolio are:
Portfolio diversification: Most financial advisors recommend holding a portion of your funds in gold as a way to hedge your bets and reduce risk. People like gold because it can hedge against inflation and protect their wealth from being worth less as it can be with paper assets.
Physical asset ownership: Gold gives you a physical asset inside of your retirement account. Most investors like the idea of owning something that isn’t subject to the same market fluctuations or counterparty risks as paper assets.
Disadvantages of a precious metals IRA
Limited metal options: You can’t buy just any gold bars or coins. The IRS has rules around eligible metals that meet purity standards.
No personal use: The IRS doesn’t let you physically possess the metals in the IRA without penalties. Your IRA custodian handles all the logistics for storing your gold in an approved depository.
Potentially higher fees: There might be higher fees compared to traditional IRAs due to storage and custodian costs. You’ll have custodian fees plus set-up fees, storage fees, and management fees.
Choosing a precious metals dealer
No matter what storage option you have in mind, be sure you work with a reputable and customer-focused precious metals dealer to safely buy your metals. Here’s some criteria to consider:
Longevity
Look for a company that has been in business for decades so they’ve seen various economic ups and downs. It also means they aren’t looking to scam customers.
For over 40 years, Swiss America has helped our customers buy quality precious metals and gold.
Customer reviews
It’s always a good idea to read reviews and customer testimonials. Swiss America’s many happy clients enjoy fast delivery of high-quality metals, responsive customer service, and consistent support that meets or exceeds expectations.
Education and advice
The right gold dealer should provide education and guidance so you can make the best decisions for your situation. Swiss America focuses heavily on investor education with resources like:
Video and podcast: Get our take on economic news and updates in our regular podcast and Youtube videos to help you understand the drivers that impact precious metals investments.
Research reports: You can find several detailed research reports from our team covering topics like The Secret War On Cash and The Timeliness Truth About Gold & Silver.
Daily news: You can always read the latest update on what’s happening in the world and its impact on gold and precious metals investing through our newsletter.
Broker expertise: Every member of our team has a deep understanding of the gold market and extensive training. We’re here to help you evaluate options, convert your IRA to gold, choose the right custodian, and choose the best gold storage option for you.
Transparent pricing
Look for companies that are up-front about pricing for gold and other precious metals investments. At Swiss America, we provide transparent pricing for both our metals and any transaction costs. You’ll know exactly the premium above the spot price.
Reporting
You can check the status of your account value at any time via our online portal. This information gives you the real-time value of your physical gold or other metals.
Gold trade program
Swiss America customers can use our gold trade program. This program lets you sell your gold back to us so you have liquidity for emergencies or portfolio rebalancing.
Where to store physical gold
You have many options for storing your gold outside of a retirement account. Take a look at our pros and cons, get pricing on the different options and chat with one of our experts to learn more about options and buying gold.
Best place to store gold: FAQs
Is it legal to store gold at home?
Yes you can legally store gold at home. But you should consider security measures and insurance coverage to protect your investment.
Is it safe to buy gold online?
Yes, it is safe to buy gold online with reputable dealers.
Is it better to store cash or gold?
Storing gold is better than storing cash because gold helps you keep more of your wealth since it’s a hedge against inflation.
The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
