Gold storage and how to store gold is a question that many gold investors need to make a decision about before they start amassing their gold coins and bars.
Many people in this nation today don’t feel safe about the status of the economy and the way it may affect their lives in the future. They choose to buy gold in the form of coins or even bars but are wary of where the safest place to store their gold may be. Storing the precious gold in a bank safe deposit box adds to the cost of owning the gold.
Too many gold investors, it seems that after they purchase the gold there should not be a charge for simply owning it. The peace of mind a gold owner is looking for may not be achieved because people don’t have confidence in the banking system anymore or their motives regarding the government’s need to know where everyone’s gold is being kept.
Some people feel that the government and the banks want to know where gold is being held in case there is some reason causing them to want to confiscate all the gold owned by private investors for the government as happened in 1933. This is when the government confiscated all the gold and replaced it with paper money which has been in use ever since.
There are people trying to sell gold to investors in the form of old U.S. gold coins telling them because of their age they will not be confiscated for any reason, but modern gold bullion coins may be subject to confiscation. This means that these old gold coins are being sold at a much higher price. Even though these coins fall into the category of old coins, they should not cost more than the modern coins because they both have the same value.
There will be many people who will try to convince you that keeping your gold in a safe deposit box in the bank is the safest way to go. If you still don’t agree with that then maybe a little compromise might go a long way. Put a certain percentage of your gold into the safe deposit box at the bank and put the remainder into all the little secret spots you have created around your home. This way you will have both ends covered and no matter what happens you will have gold at your fingertips in the case of any type of emergency; personal, national, or global.
The whole point to some people owning their own gold is when you own gold you want to have it near you for any type of emergency where that would be the only currency acceptable. The problem is that if someone breaks into your home in the performance of a regular burglary they might come across your gold accidentally. This means that you would have to be very good at coming up with unusual hiding places and scattering the gold coins or bars around the house in many different places. Another point of keeping some of your gold near you is the good luck it is said to bring to the owners. We can all use as much good luck as possible, so it can’t hurt to take this into consideration.
Some people have come up with unusual and sometimes odd places to store their gold in and around their homes such as:
1) in a fake drain constructed under the floor or even a sink;
2) a return-air vent using a face plate along with magnets to give you fast and easy access to your gold;
3) a false electrical outlet could hold quite a few bars if made deep enough into the wall;
4) use an over-sized purse where you keep all your other purses;
5) put some in your attic in an old chest or along with some old clothes or picture albums in an old trunk;
6) don’t boast to anyone about hiding gold around your house, even trusted people have been known to talk about things they shouldn’t when they’ve had a few drinks;
7) another thing not to do is to purchase a safe which tells a thief that you have something to hide;
8) use fake bricks or fake stones on the patio; 9) hide some bars in your attic under some insulation;
10) put some bars or coins in some old empty paint cans in the garage or the basement underneath paint cans with paint in them;
11) put some coins in removable bricks or stones in a fireplace; or
12) create a crawl space in the basement or a wall which will accommodate many gold bars or coins.
When you hide your gold at home it is important for you to consider whether or not a thief may own a metal detector. That is a big possibility because thieves have many devices at their disposal. To avoid being detected by one of these devices, purchase some PVC pipe and put some concrete into one end, let it dry and put in bars or coins, then add some more concrete into the other end and the detector won’t be able to locate the gold. Then you will need to decide how to place the pipes somewhere that makes them look like they belong there.
Some gold investors may be concerned for the personal safety of themselves and their family members so they prefer not to hold any gold on their property or use bank safe deposit boxes. This is where the Central Trust of Canada (CEF) or the Central Gold Trust (CGT) come in. These two organizations are the only ones that do not lease out your gold and they always keep at least 90% of your assets in unencumbered and insured long-term holdings. The bullion held by the CEF is physically stored in secured vaults under the ground below the Canadian Imperial Bank of Commerce. The bullion stored in these vaults is insured through Lloyds of London.
The CEF, in operation since 1961, is operated by a respected board in the area of precious metals. There are no Wall Street business suits involved, providing the gold owners with some relief knowing that the people watching over their gold are at least knowledgeable about the metal they have charge of. There is a website involved that has all the information any gold owner might want to have access to.
The negative to the CEF is the high premium charged for the services, but the positive is that the CEF qualifies for the fifteen percent capital gains tax treatment. This form of gold storage is much preferred to the stocks where you’re never quite sure if the physical gold is there to back up the paper.
These different ways to handle gold storage give gold investors choices as to how they choose to store their gold and the access level they wish to have for their gold coins and bars.