How to Store Gold the Right Way

It’s a story we’ve heard a hundred times before. A new precious metals collector buys thousands of dollars in gold coins, bars, and Goldbacks. They put their new stack in a cheap safe they bought off the internet. A disaster happens, and they’re completely out of luck. Their insurance provider says they don’t cover the full amount of that precious metals investment, and their coins and bars have been destroyed by a natural disaster. 

We never want something like this to happen to our customers. Disasters are rare. For the vast majority of stackers, their gold will never be at serious risk of theft or destruction. However, it’s always better to be safe than sorry – especially when quality gold bullion products are on the line. 

In this guide, you’re going to learn the basics of how to store gold the right way. We’ll channel our experience into actionable advice to help you store your precious metals with peace of mind. 

Why Store Gold? 

Collectors sometimes ask us why they should store their gold. Typically, this question involves two things. First, investors want to know why they should invest in physical gold bullion in the first place. But once you’ve secured your precious metal products, it’s fair to wonder why it is so important to store them in a working safe or depository box. 

The short answer is that gold is an expensive commodity, and failing to take proper precautions could cost you thousands of dollars. Before we explain how to store gold the smart way, let’s take a look at a few reasons why collectors invest in physical gold bullion. 

Wealth Preservation 

Wealth preservation has been one of gold’s main functions for thousands of years. Even the Ancient Egyptians who ruled a vast kingdom in the 2000s BCE kept gold and silver in order to display wealth and conduct trade. 

In the modern era, many investors put their money on gold to prepare for retirement. Gold is a non-correlated asset, which means that it might retain value during periods where traditional investments (i.e. stocks) crash. 

Learning how to store gold properly is an important thing for new investors to know. While gold can be a great way to preserve wealth and prepare for retirement, unsafe storage choices can quickly turn your dream retirement into a nightmare. 

Diversification 

Because of its role as a non-correlated asset, gold is a fantastic way to diversify your portfolio. Unlike traditional stocks and bonds, precious metals like gold allow you to take full control of your investment portfolio. Financial analysts frequently recommend gold as a way to diversify and strengthen your investments. 

Traditional investments like stocks and bonds are highly correlated with one another. This means that they lose value when the general economic market enters freefall. But this isn’t the case with gold. Instead, gold sometimes overperforms when the rest of the market begins to struggle. 

This doesn’t mean that you should fill your portfolio only with gold. Diversification is key, and understanding how to store gold can help you make the most of your diversified portfolio. 

Emergency Preparedness

Some people also store gold as a form of emergency preparedness. Some survivalists believe that gold is one of the only assets that might retain value in the event of a global catastrophe or major financial crisis. 

While we think it’s unlikely that the world will ever revert back to gold as the only usable currency, learning how to store gold can make you more prepared for the unexpected. 

Types of Gold Bullion 

Before we can really dive into how to store gold safely, readers should understand the different types of gold bullion. Each category of gold product requires different best practices for safe gold storage, so we’ll take a look at them below. 

What are the different types of gold to invest in? We find 2 main categories that most gold investments fall into: physical gold products and paper gold. 

Physical Gold Coins and Bars

Physical gold coins and bars tend to be the most common thing that collectors invest in. Because gold coins and bars hold both precious metal and numismatic value, these products are an excellent choice for people who want to have more control over the long-term value appreciation of their investments. 

However, physical gold poses a couple of risks that paper gold investors just don’t have to deal with. If you’re planning an investment in physical gold coins and bars, you’ll need to learn how to store gold safely and securely. Your investment is in your hands – sometimes literally – when you put your money on physical gold. Storing gold coins and bars improperly can be disastrous for your portfolio. 

Gold ETFs and Paper Gold 

Gold ETFs, also known as paper gold, are another popular way to invest in gold bullion. When you put money into a gold ETF, you don’t actually take possession of physical gold. Instead, you make money when the market value of gold bullion increases. 

What are the pros and cons of paper gold? On one hand, paper gold takes storage out of the equation. Because you never actually own gold when you buy into a gold ETF, you don’t need to worry about how to store gold the right way. 

The downside of gold ETFs is that you are still relying on a bank or financial institution to issue your profits. In the event of a major financial crisis, the bank/market issuing your ETF might collapse. In other words, your money isn’t really in your hands when you buy paper gold. 

Factors to Consider when Storing Gold 

If you’ve decided that physical gold is the right move for your investment portfolio, let’s take a look at how to store gold the safe way. 

2 main factors should influence your choices when figuring out how to store gold in your collection: security and accessibility. Because there are several options for collectors who want to store their gold safely, you’ll need to consider your priorities. We’ve got some advice on both factors in gold storage choices below. 

Security 

Security should be your first concern when thinking about how to store gold coins and bars. We find 3 main options for people who want to store their gold: home storage, storing gold at a bank, and paid bullion storage with a precious metals dealer. 

Home Storage

Home storage is the most common way investors store gold. The main advantage is pretty clear: accessibility. When you store your gold at home, you have ultimate control over the investment. You can choose how to store gold in your own safe, how to display gold coins, and when to sell. 

The downside is also pretty easy for collectors to wrap their heads around. If you don’t learn how to store gold properly at home, you open your portfolio up to considerable risks. Gold coins can be stolen, damaged by exposure to open air, and destroyed in a natural disaster or accident. 

Storing Gold with the Bank 

Banks are likely the safest place to store gold. If a bank accepts gold bullion deposits, all you have to do to store gold is open an account and place your bullion in a safety deposit box. These boxes are generally insured by the FDIC, meaning that you’ll be safe in the event of a robbery or disaster. 

Some banks might charge a fee to store your gold coins and bars, and you might be limited to a certain monetary value when storing with most bank depositories. Still, banks are a feasible option for people who don’t want to invest the time and money into a home storage setup. 

Paid Bullion Dealer Storage

When customers ask us how to store gold, they usually ask about storing with precious metal dealers. Can you store gold with a bullion dealer? Absolutely! Many dealers offer storage services for their customers. You might save quite a bit of money by storing your gold coins and bars with a qualified precious metals dealer. 

Bullion dealers know that they trade in extremely expensive products, so their security is usually top-notch. 

Accessibility 

Accessibility is another major concern. Bullion dealers who want to know how to store gold safely are often worried about letting their gold out of the house. Whether you store at a bank or a precious metal dealer’s warehouse, storing off-site means losing some level of control over your bullion. 

Below, we’ll outline some of the accessibility concerns associated with how to store gold outside of your home. 

Liquidity Concerns 

If you’re ever in a financial pinch and need to sell your gold quickly, it might be best to have your hold at home. While banks will allow you to withdraw your bullion if you need to sell it fast, the process can be too lengthy for investors who want to liquidate immediately. 

Storing gold at a precious metal dealer’s warehouse can be a good way to retain liquidity without worrying about how to store gold at home. Many dealers who offer storage also boast massive buyback operations. If you store your gold with a qualified bullion dealer, they might buy it off of you without requiring you to ever take physical possession of the gold. 

Accessibility in an Emergency 

While some off-site storage options allow for optimal liquidity, learning how to store gold at home is really the only option for emergency preppers. If something terrible happens and a natural disaster destroys your ability to access fiat money from the bank, you’ll want to have your gold stored at home. 

Legal and Regulatory Considerations 

Some investors buy gold for their precious metals IRA. In these cases, federal regulations from the IRS make it illegal for you to store your gold bars and coins at home. For most people, it’s perfectly legal to store bullion in a home safe. But if you plan on investing directly into your IRA using precious metals, you’ll need to designate a custodian responsible for storing your gold at a separate site. 

How to Store gold at Home 

Although there are several options for storing gold safely, we find that most investors prefer to store their gold at home. This option isn’t perfect, and there are quite a few risks that you should be aware of. If you’re wondering how to store gold at home safely, let’s take a look at choosing the right safe and securing insurance for your precious bullion investments. 

Choosing the Right Safe 

Gold can become damaged over time if it’s left exposed to the elements. While gold does not tarnish like some other precious metals, we don’t recommend leaving .9999 gold coins sitting in your desk drawer. Typically, investors opt for a temperature controlled, waterproof, and fire resistant safe. 

This kind of safe provides protection against most of the risks associated with storing gold at home. A safe can protect you from theft, but a temperature and element-controlled safe prevents disasters or accidents from ruining your collection. 

Insurance and Security 

Please be aware that not all homeowners insurance plans protect gold bullion investments. Part of learning how to store gold the right way involves understanding insurance coverage. Take a look at your homeowners insurance’s terms and conditions. If you need to buy additional coverage to protect the entire monetary value of your investment, this might be worth the money. 

After all, insurance may cost a couple hundred bucks – but losing your gold coins means missing out on thousands of dollars. 

Final Thoughts: How to Store Gold the Smart Way

Investors who are buying gold coins for the first time usually want to know how to store gold securely. You have a few options. Home storage is popular, but requires that collectors put some time and effort into the security of their investments. 

Others choose to go with bullion dealer storage, while some investors put their gold investments in a bank’s safety deposit box. 

Regardless of which option you choose for storing gold, Hero Bullion is always here to help. Please never hesitate to contact us with additional questions you may have. 

You might also like: 

• Are Precious Metals IRA Eligible? 
• How to Display Gold Coins
• A Brief History of Gold Coins