How Much Does it Cost to Store Gold?
Investors purchasing physical gold bullion must also consider the costs and risks of storing it at home; while this option is popular, home storage comes with costs and risks such as theft.
Many people don’t realize the costs involved with owning and storing physical gold can be substantial. Here we explore some of these expenses associated with owning physical gold and how best to reduce them.
Costs of Safe Deposit Boxes
Renting safe deposit boxes at banks and credit unions provides a secure method for keeping valuables protected. Prices typically range from $20-200 annually depending on box size, bank fees and rental agreement terms.
Renting a safe deposit box can be a convenient solution for stowing away precious belongings that you want your family members to access, such as antiques, documents and family heirlooms. Furthermore, this storage solution can serve as the ideal place for vital financial documents like home deeds and insurance policies or wills that you want to keep safe for later.
Although safe deposit boxes tend to be less costly than private home safes or home security systems, their contents aren’t covered by banks or credit unions and could face legal restrictions, including how long they can remain stored and who has access after renter deaths. Some individuals take extra precaution by adding personal articles floaters onto their homeowners or rental insurance policy policies for extra peace of mind.
Costs of Depository Storage
Gold storage costs may add an extra expense, but they can often be worth paying for. Investors want peace of mind knowing their investments are protected against theft and natural disaster. Options available for storing precious metals include bank safe deposit boxes, home safes, or secure depository facilities.
Storage at home typically incurs additional costs, including purchasing an appropriate fireproof and waterproof safe and residential security system. Furthermore, home storage carries with it an inherent risk of theft; many homeowner insurance policies will not cover high-value items like precious metals.
Depository storage providers typically charge an annual storage fee that ranges between 0.72 percent to 0.5 percent of an investment’s pre-insurance value; fees may be invoiced monthly, quarterly or twice annually and are often more cost effective than renting a safety deposit box.
Costs of Home Storage
Gold bullion can be an attractive investment choice for individuals seeking to diversify their portfolios with something low maintenance requirements and easy monitoring, yet investors should carefully consider storage costs before purchasing and holding physical gold bullion.
Gold investors have several storage options for their investments – at home, in a safe or third-party. But storage costs can quickly accumulate if you own an extensive portfolio.
For those storing modest amounts of gold, renting a bank locker at their local financial institution may be less costly. Annual costs vary but may begin as little as $95 annually for a small locker that’s about half the size of a dresser drawer.
However, home safes can cost thousands of dollars and often exceed $3,000. Since they do not typically come with insurance coverage, owners will likely incur additional premiums for their investments.
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