Where am I Supposed to Store All This Gold & Silver
As a metals broker I am always asked about storage. I have rather strong feelings about this topic and I always advise people the following:
Let’s talk about taking possession first. Just how much room will you need?
A box of 500 - 1oz silver eagles is about the size of a big shoe box or about 9” x 15” – 6” tall. A box is worth about $17,000 more or less. So if you want to store $100,000 in silver you will need a space about the size of 6 large shoeboxes. Large 100oz silver bars are a bit more compact and stack much easier in a smaller space. 90% silver is a bit more bulky and doesn’t stack well at all in bulk bags. Gold on the other hand is much more portable. Just 60 - 1oz gold coins are a bit over $100,000 USD and do not take up much room at all. They could easily fit inside the cardboard tube of a roll of paper towels.
That same $100,000 of silver (or 6 – 500 coin boxes of silver eagles) will weigh about 206 pounds. The same $100,000 of gold (60 - 1oz coins) will weigh a little over 4 pounds. A million dollars in gold would only weigh 40 pounds or so and could be easily carried off by one person without much effort. A million dollars in silver would weigh 2,060 and would require quite a bit of effort and a truck to carry it all away.
So where to put all this? For centuries people have worried about how to store their wealth. Ask someone who lived through the great depression about hiding wealth. If you can find someone in their nineties that can remember they will tell you that most people didn’t trust banks and hid their money around the house. The last 3 or so generations have always trusted the banking system and have never given much thought to holding their wealth. Over the course of history it is more common than you may think to store your own wealth.
Just visit any old European city, affluent sections of central or south America or even the French Quarter in New Orleans or old Charleston and you will start to notice something about the architecture. Most of the homes are built like a fortress. They have very nice interior courtyards but also have walled fronts with heavy doors and heavy shutters on the street windows. In some locations it was common to set beer bottles in mortar along the top of the masonry outer wall and then break off the tops (sort of a cheap home-made razor wire). During normal times the heavy main door to the courtyard and heavy window shutters were open and things looked fairly normal but at night or in times of trouble these places could lock up fairly secure. The modern suburban home is much harder to defend and usually depends on a security system to notify the local police. While the modern home in the US is not as secure as some there is certainly no reason you cannot keep some of your wealth at home if you so chose.
The first layer of security is secrecy. If no one knows there are valuables in your home then there is no reason for someone to come and search for them. Everyone has seen the pirate movie where after the loot is buried the head pirate kills everyone and then buries all of them along with the treasure. I would not recommend this technique but the secrecy involved has merit. You can hide small amounts of gold almost anywhere such as: within steel fence posts, buried in the garden or in the yard, in hollowed out books, inside frozen food in the freezer, within the wall space behind dummy electrical receptacles. The list is endless and can be as varied as your imagination. If you do hide your metals you should probably tell someone in case something happens to you - just make sure it is someone you trust. Another consideration is what pick-pockets call a “tell”. If you hide money on your person in a secret place most people routinely give themselves away by constantly checking to make sure it is still there. The first thief simply bumps into someone innocently and the victim immediately touches his secret hiding place to make sure the valuables are still safe. The second theif knows exactly where to lift the valuables a bit later. If you bury or hide your metals don’t go check on them routinely or you will simply give away your hiding place! Sounds very simple in theory but most people just can’t stay away.
The next layer of security is a safe itself. If the safe can be hidden then all the better. If the safe can be locked behind a closet door or a false wall then it will have to be found before it can be attacked. If you are interested in purchasing a safe be certain to read my article on “A Guide to Buying a Safe”. It will tell you more than you ever wanted to know about safes and safe ratings.
Finally if you are interested in private storage there are several options. There are private non-bank companies that rent private safe deposit boxes in the US as well as several others around the world. Give us a call if you are interested and I will tell you about all that we have visited.
Finally there are private depositories that store your metals in a segregated and insured manner. These are more expensive but your metals are insured. Just contact us and we will be happy to tell you about all these depositories that we are familiar with as well.
Buying precious metals is just the first step. Deciding where to keep them is quite another decision. However, don’t let the issue of storage scare you away. Doing nothing and keep depreciating currency in a bank that pays little or no interest means you are already having your wealth stolen a little at a time day after day.
Larry lives in Shreveport, LA with his wife Puddy, and sells precious metals at the Silver Trading Company.
Send questions, comments or corrections to firstname.lastname@example.org.
Larry sells precious metals at the Silver Trading Company, LLC. Visit us at www.silvertrading.net . Worried about storage issues? Ask us and maybe we can help.