Why Buying and Storing Gold at Home is Not a Great Idea
Many gold buyers opt to store some of their precious metals at home for various reasons.
Some buyers opt to store bullion at home due to lower storage costs than professional facilities, however this poses several significant drawbacks, including security, insurance and liquidity concerns.
Security Issues
Many gold buyers opt to store their precious metals at home due to its convenience and control, while being cost-effective by eliminating storage fees and costs associated with third-party storage locations.
But, storing gold at home can pose security issues. First and foremost, investing in a high-quality safe or vault will protect the gold investment from burglars. Furthermore, installing security cameras near where gold is being stored at home may deter thefts and provide evidence in case theft does occur.
As with anything of value, its location should remain unknown to everyone except trusted family members. Loss or theft could prove difficult to recover; additionally, uninsured gold isn’t protected like bank safe deposit boxes and could represent significant financial risk.
Insurance Issues
Homeowners’ insurance often does not cover the loss or theft of precious metals stored at home, which raises both burglary risk and fire or natural disaster-related damage to these bullion pieces.
Storing gold at home requires an initial investment in a secure safe or vault. Furthermore, its location should be carefully considered so as to be hard for thieves to access it.
Displaying Gold bullion and coins to friends and family can be tempting, yet dangerous. While this may be done out of good intentions, people who become aware of your gold might become tempting targets for theft.
Some investors opt to store their gold in a safety deposit box at a bank, which provides increased protection than keeping it at home. Unfortunately, this method can be more costly and might require purchasing an individual “personal articles” policy to cover such storage arrangements.
Liquidity Issues
Home storage of Gold can often provide faster access. However, this comes at an additional cost; buyers may require insurance coverage.
Home storage makes Gold more vulnerable to thieves. Burglars will more often target homes that store Gold bars or coins in obvious spots like a sock drawer or cookie jar, making theft much simpler. Furthermore, stored Gold at home can easily become damaged in natural disasters like fires and floods.
Stored at home, Gold can make it more difficult to sell quickly if a buyer needs cash quickly. They must find someone willing to purchase the assets outside of a professional vault or bank safe deposit box – this process may be time-consuming and may lead to frustration if it takes too long; even worse, governments could seize people’s assets like they did during the Great Depression of 1933.
Tax Issues
If you store gold at home, you could be breaking IRS rules by failing to report it as an asset on your tax return. If your home storage plan involves keeping bullion bars on hand, be sure to consult with an accountant so you’re taking all the appropriate steps and fulfilling all your tax obligations.
Storing precious metals at a bank or vault can provide high-end security and insurance without you needing to worry about how best to store the items yourself. However, vault storage often comes with certain issues which should be taken into consideration before choosing this option.
Keep in mind that any time anyone knows where your bullion is stored, they could gain access to it – which could prove difficult if you become incapacitated, die or are robbed. Therefore, only disclose this information to trusted individuals or limit social media posts about investments related to them.
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