Why use a Depository?
When purchasing precious metals, buyers must take into consideration where they intend to store their gold, silver or other metals.
While many may elect to store their metals at home or in a safe deposit box, this can become more challenging if larger quantities are being purchased. While the accessibility of home storage can be quite appealing, it does also represent a security concern. A safe deposit box, on the other hand, may offer superior security but comes with more limited access.
While using a depository to store your precious metals does not provide immediate access to your metals, it does offer a cost-effective and secure solution to your precious metals storage needs.
What Exactly is a Depository?
A depository is a third party facility that stores and secures precious metals for a fee. A depository can store both large and small amounts of gold, silver and other precious metals in various forms.
A depository may offer storage in either segregated or non-segregated accounts. A segregated account is an account in which your precious metals are stored by themselves, completely separate from the metals of other customers or any depository holdings. A non-segregated account, on the other hand, will store your precious metals in communal areas along with precious metals belonging to other account holders.
The decision on whether to use a segregated or non-segregated account may depend on personal preference, types of bullion being stored and fees associated with such accounts.
There are many depositories available for storage of your precious metals. Your choice of depository may depend on your location and a comparison of fees. Some of the more popular depositories include:
– The Delaware Depository
– JP Morgan Chase Bank
– ScotiaMocatta Depository
What are some Advantages offered by a Depository?
Storing your gold, silver or other precious metals in a depository can have numerous advantages. Here we will outline some of these potential advantages:
Security: A precious metals depository is in the business of holding and safeguarding your precious metals. These depositories utilize state-of-the-art security technology to keep your metals secure. Measures such as constant, 24 hour surveillance, entry and exit records as well as security personnel may be used. The risk of loss or theft when using such a facility is extremely remote.
Insurance: Many depositories offer insurance coverage to further protect your gold, silver or other precious metals. Insurance coverage is an added layer of protection that can cover losses in the unlikely event of loss, damage or theft. Different depositories may offer different forms and levels of coverage, and one should become familiar with insurance policies and coverage when choosing a depository.
Auditing and Record Keeping: A precious metals depository goes to extensive lengths to properly store, maintain and account for all the metals it holds. Periodic inventory checks can alert the depository to any potential missing inventory quickly.
Ability to store large amounts of Bullion: For larger holdings of precious metals, a depository may be preferable to other storage methods. When storing precious metals at home, space can be a serious limitation as well as the security issues that come with it. In addition, home storage is more likely to lead to loss or theft. A depository can handle even the largest amounts of gold, silver or other metals safely and securely.
Peace of Mind: Due to their security, accounting and insurance measures, a depository can provide the owner of precious metals with peace of mind. One can sleep well at night knowing their precious metals are secure and accounted for.
Some types of precious metals purchases such as purchases made within an IRA account must be stored within an approved depository. If you are purchasing gold, silver or other metals outside of an IRA account, precious metals depositories represent a secure storage solution that should be considered along with other storage options.