Can You Put Gold in a Safety Deposit Box?
Many collectors and investors prefer storing their gold at home over third-party storage options for several advantages, including being easily able to access it and avoiding fees.
But keeping precious metals at home poses risks, including limited accessibility and no insurance cover.
What is a safety deposit box?
Safe deposit boxes can be rented from brick-and-mortar banks or credit unions for valuables storage or sentimental items. Access is allowed during bank business hours and most boxes are constructed of metal to withstand fire, floods, tornadoes and other natural disasters.
Safety deposit boxes differ from home safes in that their contents aren’t covered by homeowners or renters insurance policies, nor by the Federal Deposit Insurance Corporation (FDIC), which only insures cash deposits in bank accounts. Therefore, you should add an extension on your homeowner’s or renters policy for coverage of its contents.
Bank safe deposit boxes offer increased protection over home safes with their guards and cameras, fireproof vault doors and extra guards.
How do safety deposit boxes work?
Safe deposit boxes are secure storage units available at banks or credit unions that customers rent for a fee. Usually used to protect documents and valuables that cannot be easily replaced – like original birth certificates, property deeds and car titles – they’re best used as an emergency backup plan and not suitable for keeping passports or medical directive documents accessible during banking hours.
Most banks require their tenants to sign a lease agreement that outlines how much they owe for renting the box, what can and can’t be stored inside, access rules after their demise and more. Should they fail to renew their lease agreement, contents of their box could be turned over to state’s unclaimed-property office; their boxes typically feature dual keys so only someone authorized by them may open them.
What are the benefits of a safety deposit box?
Safety deposit boxes offer you safe storage for your valuables, removing the worry of someone breaking in or stealing gold from purse or wallet. In addition, they can protect important documents, military discharge papers, tangible stock certificates and minor antiques that could become difficult or impossible to replace if lost or stolen.
Safety deposit boxes offer many advantages over home storage solutions, as only two people must be present to gain entry and therefore limit unauthorized theft of your possessions. They’re typically cheaper too compared with having everything insured by one entity alone (like you).
As with anything, using a safe deposit box has some drawbacks. Most notably is its inconvenient nature for accessing gold at times of need and their limited storage capacities that may not allow you to store large amounts of precious metals safely.
What are the disadvantages of a safety deposit box?
One major drawback of storing gold in a safety deposit box is its lack of coverage by an insurance provider; should your investment become lost or stolen, you won’t get any reimbursement from your bank. Though independent policies offer protection at additional cost.
Safety deposit boxes can only be accessed during bank business hours – which may pose problems for collectors or investors needing quick access to their investments.
There are other methods of storing gold, such as burying it in the backyard or hiding it away in a secret bookcase in your home, but these options may be less secure and require more work than keeping your gold in a bank vault. Furthermore, they may be vulnerable to heat and humidity damage and more difficult to keep private if someone discovers them; when considering storage options for your gold, it is essential that you carefully weigh their advantages and disadvantages.
Categorised in: Blog