Posted on: 29 March 2016
Buying gold is an excellent way to invest, but unlike with some other investments, you have to think about how and where you will store it. A lot of people decide to store their gold in safe deposit boxes at the bank, which can seem like a great way to keep it safe. However, this isn't the best option for a few reasons. Instead, you may want to consider storing it in a safe in your home or in some other secure location. These are the main reasons why.
Your Gold Won't Be as Protected as You Think
A lot of people think that it makes sense to store gold in a safe deposit box because then it will be protected, just like their money is protected when it's stored in their checking and savings accounts. Unlike a bank account, however, a safe deposit box at a bank is not FDIC-insured. This means that if something happens to it, the replacement value might not be covered. If the bank gets robbed, if something happens to the building, or if there is another issue, you have to worry about the potential of losing your gold for good. Although this can be a concern at home, too, it can be even more worrisome in a bank, since you have no control over what might happen to your gold while it's there.
You May Not Be Able to Access it When You Need it
Another thing that you have to think about is your ability to access your gold when you need it. While you can transfer money from your bank accounts online, and you can go to the ATM to withdraw your money if you need it, you can't always access a safe deposit box—instead, you have to go in and pick up your gold during bank hours. If something happens to your bank or if you suddenly need your money on a holiday or weekend or late at night, you won't be able to access your gold in order to sell or trade it. if it's stored in your home or another location that you can easily access, however, this is not something that you have to worry about.
As you can see, even though a safe deposit box can seem like the perfect place to store the gold that you purchase for investment purposes, it really isn't. Instead, consider investing in a safe to store in your home, or look into other storage options that don't cause these problems.Share