How to Buy and Secure Gold

There are a few options when it comes to storing gold and what it really comes down to is 1) how much do you need to secure and 2) how secure do you want or need your items to be.

If you are storing a small amount of gold or other items it may be convenient and cost effective to get a small safe that can accommodate you and allow you to remove whenever you want, but the bank uses that to make other investments. The difference is that unallocated assets can be seized should a bank fail (if beyond the protection of the FDIC).

When exploring storage of assets such as gold it is important to do your research on the facility and discuss their experience with such holdings. Not all institutions have the capacity or security that is needed to secure physical assets and the discussion of where and how your assets will be stored is an important one to have. Also, you need to know what your fee covers and what, if any, insurance is offered by the institution.

Make sure that the dimensions of the safe will fit whatever the contents are currently or will be in the future and then make sure that you find a safe place to mount your safe. Within this category there are many options and it may be best to go to a store that specializes in safes and home safety to discuss your options.

Should you decide that you don’t want to deal with or take responsibility for securing your own items, there are a number of secure options you can explore. Once again, if you are not storing that much it is relatively inexpensive to get a safety deposit box at your banking institution. This is also a great idea for other personal items and assets such as wills, etc.

If you are holding a larger amount of assets such as bars you can actually pay certain institutions to hold and secure your assets. This is different from making a deposit into the bank or institution as the assets will still remain your property and be marked as such. You are paying a fee for the safety of your items under a custody arrangement and you will not receive interest, dividends, etc. This is called Allocated meaning that the assets are specific to you. There are also unallocated holdings which is similar to a typical deposit in a bank meaning that you "have" gold in the bank too.

As with any investment there are pros and cons to buying physical assets such as gold, but in this uncertain economy the gold market is one of the few investments that has held strong and continues to rise. Just make sure that you protect yourself and your investments. Ask all the questions up front so you know what you are getting and what to expect.

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