Monday, September 22, 2014

Why You Do Not Want To Store Gold In A Bank Safe Deposit Box

by Roger Bond on January 31, 2013

Thieves Steal, Burn, German Bank Vault

do-not-store-gold-in-a-safe-deposit-boxIt’s a long standing tradition for some people to store gold in a safe deposit box along with other valuables. Even veteran economist and prolific finance writer John Mauldin writes that he stores gold coins in the local bank vault.

In movies we sometimes see safe deposit boxes in bank vaults robbed, and yes, in real life it is thankfully rare. But it does happen, and those contents are NOT insured by the FDIC or anyone else.

Earlier this month German police said robbers dug a 30-meter (100-foot) tunnel into the safe deposit room of a Berlin bank and escaped with their treasure, setting a fire as they left to cover their tracks. So what did not get stolen may have been damaged by fire or water (though any precious metals left behind would have been tarnished at worst).

This is Why Storing Gold in a Safe Deposit Box is a Bad Idea

  1. It’s not insured. There are other options for gold storage, even offshore gold storage where your gold IS insured.
  2. Gold confiscation. If that ever happens again, the government will again lock down safe deposit boxes and allow them to be opened only in the presence of one or more government agents from who knows how many agencies, including the IRS.
  3. Limited access. If you think the bank isn’t open very many hours per week now, wait until a crisis when you might need access to your gold and see how easy it is to get in then.
  4. Yes, safe deposit boxes CAN be robbed (I think burglarized is the more appropriate term…)

We only advocate storing gold in a safe deposit box for a short period of time for a particular reason (maybe you are in the middle of a move and do not have a good home safe in the new location yet); not long term storage.

If you want inexpensive, semi-allocated gold storage, we recommend BullionVault as the lowest cost insured provider.

If you rather specific bars and coins, then Hard Assets Alliance may be your answer and your gold is insured there also.

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{ 4 comments… read them below or add one }

John Stewart January 31, 2013 at 5:17 pm

I wasn’t aware the contents of a safety deposit box weren’t insured. Kind of an oxymoron calling it a safety deposit box. I’m going to have to reconsider where I store my valuables

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Dominic Wells January 31, 2013 at 10:15 pm

LOL so true. Guess i should put it under my bed, at least i can insure it then.

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Ben January 31, 2013 at 7:08 pm

Great advice. I’m getting into collecting coins and hopefully will be able to work up to gold bars.

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Pat McConaha February 3, 2013 at 4:05 pm

This makes me think twice about where I store my coin collection. Maybe a secret safe built into the ranch house that we are in the process of remodelling…..Sure appreciate this great info. It got us to thinking about the safety of those safety deposit boxes.

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