Third-Party Storage
-Advantages – greater security than a home or a bank; the gold will have gone through the assay process to determine quality and liquidity for easier trading; gold and other precious metals will be underwritten by a reputable insurer such as Lloyd of London
-Disadvantages – Immediate nearby access to the physical bullion, yet some storage facilities allow for precious metals trading
Consider:
1. The vault or depository’s reputation by talking to other investors
2. Storage facilities should do third party audits, offer unlimited online access to their personal records.
3. The facility should guarantee delivery of an investor’s gold by armored car in a relatively short period of time
4. Whether a facility allows an owner to take loans against their stored goal
5. An investor needs to consider the cost of service and the jurisdiction of the provider. For instance, Singapore is known as one of the safest countries in the world for the storage of gold bars and coins due to the government actively supporting and promoting their country as the hub for trading and storage. There are no reporting requirements on buying, selling, or storing and also no sales taxes, or any taxes with regards to gold purchasing. Other countries that are deemed friendlier for gold and precious metals investors and high net worth individuals are the Cayman Islands, Switzerland, New Zealand, Panama, and Austria.
Most advisors suggest diversifying in all three areas for flexibility, accessibility, and long term protection and ultimately peace of mind. -AJ
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A huge thank you to the following sources for their educational input:
CNBC – Is now a good time to buy gold
GoldSilver.com – How to Store Gold At Home
Bullionstar.com – Ways to store gold
NomadCapitalist.com – Best countries for offshore gold storage
Hat Tip to the Following photographers:
Swapnil Bapat – Singapore
Linda Hamilton – gloved hand holding gold
Ulrich Dregler – gold bars
Matthias Wewering – single gold bullion
Reimund Bertrams – Vault Door
Krocker Klaus – Safety Deposit Boxes
Boris Stefanik – Lloyd of London
Irina Kukuts – Aquarium
Walter Freudling – Silver Bars
Makingmilly – precious metal coins
Simon – coins on wooden table