Gold is one of the most valuable investments, but is it worth the risk of storing your precious metal at home? Here are ten reasons you should not keep your Gold outside a bank vault!
Should You Get a Gold IRA?
Theft
Storage vaults typically offer insurance for individual gold bars and coins. Many institutions offer physical protection and provide more extraordinary security measures such as electronic locks, CCTV surveillance, and underground vaults. Banks have entire teams of professionals to ensure that nothing happens to the contents stored within their lockers, and they can’t be hacked or tampered with while they’re there. As a result, most banks have had no robberies since 1970!
Confiscation
The U.S. government and banks can confiscate Gold stored at home without a warrant if they suspect a person is involved in criminal activity. As such, it is common for agents to search people’s homes for gold bullion when they suspect wrongdoing – this is how an alleged pawn shop owner and his daughter became targets of FBI and IRS scrutiny! When the agents raided the daughter’s home, they found $1 million worth of Gold hidden in her washing machine and basement! Failures to report all of one’s assets are also frequently used as a legal excuse to seize Gold.
Security Vulnerabilities
Storing your gold storage devices at your home means that any sensitive information such as account numbers can be easily stolen. If a burglar broke into the house, they could be able to pinpoint where the Gold was located. As many thieves are getting more advanced and sophisticated in their techniques, it’s not very hard to find and obtain information from your personal computer, files, or home.
Convenience
Banks typically provide 24-hour access to your stored valuables, meaning you can quickly take out the amount of money you need. This is not the case if you keep your Gold at home – if you need access, you must take it out and transport it elsewhere. Also, you risk exposing yourself to the risk of thieves stealing or damaging your Gold.
Administration Costs
You will incur administration fees if you are storing your Gold at home, whereas with a bank account, you won’t have to pay for any services and expenses such as annual fees or monthly charges. Gold vaults offer 24-hour access and insurance for items placed within their secure facilities – including the security measures of these professionals. Banks will look after everything from checking accounts to your investments and other valuables.
Fraud Liability Issues
Banks are recognized and regulated by national, state, and local governments, so they are held to a higher standard. As such, bank vaults are much safer than storing Gold in your home or a storage facility. Gold stored in lockers at banks is also insured, so if an item were to be stolen, you would still be compensated under the insurance policy offered.
Criminal Activity
Gold bars and coins can be used as currency to raise funds or launder money, often seen as financing illegal activities such as drug abuse and terrorist activities. The U.S. government has made it illegal to trade domestic currency for Gold, gold coins, and other precious metals. Furthermore, if you are caught selling this way, you will be reported as a terrorist and may face arrest.
Lack of Privacy for Valuables
Banks have the same privacy standards the Federal Trade Commission requires, so your valuables are kept confidential within these secure vaults. Suppose you keep your valuables at home or in a storage facility. In that case, they usually have no obligation to protect your privacy, and you may not know who is handling or storing your valuables while they’re there.
Investment Opportunity
Many banks now offer investment opportunities through gold IRAs that allow you to invest in Gold with your retirement funds. These options can be a great alternative to purchasing physical Gold, enabling you to sell your Gold for cash whenever you wish. Also, if the value of precious metals decreases, those who have invested in a Gold IRA can recoup whatever financial loss they have incurred by selling off their assets.
Gold Plating
Gold plating refers to the attempt to increase bullion’s value, such as gold bars and coins. International bodies heavily monitor this practice, so a private individual can’t undertake it. Banks are required by law to tell you if a vendor has asked them to enhance your Gold physically – and whether they have agreed to do so! For more information on this matter, please visit our Gold Plating section.
Conclusion
If you’ve been considering buying Gold to diversify your portfolio and protect your money, you will want to find a safe place to store it. While nowadays it’s easy to buy jewelry online and deliver it straight to your door, we don’t recommend keeping your gold bullion at home. This can be risky, especially if you don’t have suitable security measures in place, and there is a genuine risk that you could lose your Gold or have it stolen by someone who breaks into your house. Storing Gold in high-security facilities at trusted banks is one of the best ways for individuals, families, and investors to protect their buying power from the erosion that comes from inflation.
