Why Buying and Storing Gold at Home is Not a Great Idea
Home storage of small amounts of bullion may be ideal, but larger volumes should not be left exposed to potential natural disasters like floods, tornadoes and earthquakes.
Storage of gold at home poses the additional risk of theft, especially if your living arrangements include untrustworthy roommates or in an unsafe neighborhood.
It’s Illiquid
Home storage of precious metals may seem attractive for investors, but this can be dangerous due to multiple considerations. First and foremost, keeping bullion at home requires physical access which could prove inconvenient or even dangerous in certain instances.
Home storage of gold may also present difficulty when it comes to security. While owners might attempt to hide coins and bars under fake books or under their refrigerators for protection from natural disasters, such strategies might not offer enough safeguarding.
As with most assets, gold cannot be replaced once lost; therefore it is wise to store your bullion at an offsite facility in order to retain liquidity in your investment and increase security.
It’s Expensive
Gold storage at home can be both costly and risky. Burglars will find your gold easily if stored in an obvious place like a fake cookie jar or book.
Should your home become affected by natural disasters such as flooding or tornadoes, such as an outbreak of illness or tornadoes, precious metals could become irretrievably lost. Even the best safe or secure hiding spot may be destroyed by these devastating events.
Home-stored gold can also be difficult to sell; you will need to travel to a trusted physical gold store that may not have convenient location or working hours; testing and estimating its value takes time; additionally, many homeowners’ policies do not cover gold as an investment and you may need separate policy as a safeguard; additionally if storing at home you will require purchasing a safe/security system as well.
It’s Not Secure
Home storage may seem like the ideal option; while it’s comforting having precious metals close at hand, home safes don’t offer 24-hour monitoring and protection as do bank vaults and depositories.
Storing gold at home also exposes it to natural disasters like tornadoes, earthquakes and hurricanes, while not providing any security against theft; should someone discover your bullion stash they would easily be able to steal it if they knew exactly where it was stored.
Some buyers choose to store their gold at home because it is convenient and eliminates storage fees. Unfortunately, this form of storage can make reselling it more challenging as buyers must disclose whereabouts of assets. Furthermore, buyers may question quality of your bullion as buyers might misjudge its worthiness.
It’s Not Covered by Insurance
Home-stored gold is also vulnerable to theft. Although people go to great lengths to protect their precious metals, thieves could still easily gain entry and steal your investment. Storing it at home requires purchasing additional insurance coverage because such methods of storage typically are not covered by standard homeowners policies.
Home-stored gold is susceptible to theft as well as natural disasters like a fire, flood or tornado, regardless of how secure your home may be. This is particularly relevant when large quantities are stored there.
If you store Gold at home, it is imperative that you name a nominee who can access your assets if something should happen to you. Without one, family members would have no way of accessing it. There are alternatives such as bank vaults and private depository services which offer more secure storage solutions.
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