There are various storage and transportation options available to precious metals investors, some better than others and your needs will differ depending on your security and safety priorities when buying and holding precious metals. Broadly there are a few ways an investor could go about holding and storing their precious metals.
Storing the metals yourself
If you are looking to store a small quantity of precious metal, it may not be economical to consider a dedicated storage solution. Although many may elect to store their precious metals at home, this option is fraught with risks. Precious metals when stored at home leaves the holder at risk of theft and other dangers. Furthermore, the holder may not have the security measures required to survey and keep safe the metals at all times, meaning that your valuable, easily transferrable precious metal is open to risk of loss, theft and leaves the holder open to loss and danger.
Safety deposit boxes
The common perception that many people have of banks is of a river of gold in the vaults underneath the tellers’ feet. While some banks may offer storage for precious metals, some do not. Insurance may be optional and can be arranged either through the bank or separately by the account-holder. Transportation can also be arranged separately, meaning either you must do it yourself – which is extremely risky – or arrange transportation with a third-party – which can be time consuming. Unless you’re selling directly to the bank, buying and selling precious metals stored at your safety deposit box can be a laborious process involving withdrawing the metal and then separately arranging transport to the buyer.
Unallocated and allocated storage solutions
If you choose unallocated storage this may mean lower entry costs to the precious metals market. The benefits of this service include avoiding transportation, storage and insurance costs and risks and converting unallocated to allocated physical metal for physical delivery.
Allocated storage is valuable for investors looking for segregation of their own precious metals bars and coins. The metal will be stored separately, meaning you’ll retrieve exactly what was stored. Valuable for collectors or investors keen to retain specific pieces of gold, this service comes with higher fees attached due storage and insurance costs. Allocated storage also provides the holder with greater control over their precious metals holdings, be within close proximity to their physical holdings and hold precious metals within the chain of integrity. If you’ve made the decision to seek secure and insured door to door delivery including secure storage, then an allocated storage solution may be your option. In addition, specially-designed facilities and services offer high security for your precious metal holdings with around-the-clock surveillance of your goods. These doors to door and storage solutions provide the holder a level of comfort and confidence that all movement and storage of precious metals are handled through a service that is provided to banks and some of the largest corporations globally.
Make the right decision for your unique situation
Choosing the right precious metal storage option is important. In some cases, you won’t be protected in the event of theft or the organisation liquidating, so it’s important to do your homework beforehand and enter the market with proper guidance.
International Commodities House can be your guide to the precious metals market. Our robust storage and logistics solutions ensure your satisfaction. Speak to us today to learn more about how we can provide a service to you.