It’s not always advisable to store gold, or any other precious metal, in your own home. There are exceptions though, times when your gold should be safe and secure and times when you might actually be better off storing your investment in your own home. All dealers, including the better bullion storage companies, will ship you physical gold. After all, they have the gold and you purchased the gold, so it only makes sense and if they don’t have an option to ship physical gold to you, then you should be very suspicious. In such cases it is likely that what you have purchased is “paper gold”, which is to say that it exists as a promise on a piece of paper, but not as real bullion.
It is very risky to buy gold like this because you have no guarantee of getting your hands on the real thing. And having that tangible investment, something that you can touch, feel and admire, is an important aspect of precious metal investment.
But even if you do have the option of getting your investment shipped to you, it doesn’t mean you should. In many cases, you can simply sell the gold directly from the vault, never receiving delivery, never getting your hands on it, and yet profiting from it at the same time.
Issues: Your Home, Your Area
How big and how secure is your home? If you have a new house, one that comes equipped with an alarm, secure locks and some form of perimeter security, then it’s safer to store gold than if your home is a two-hundred year old terraced house in the middle of a busy street. It’s not just about security either, because if a burglar wants to get into your home, if they think there is something in there that is worth the time, the effort and the risk, then they will find a way.
The thing to remember is that they will always choose the easy option. Burglaries are far more common in older, smaller and poorer homes than in newer and bigger ones. That would seem counterintuitive as the newer homes would clearly have more things of value in them, but most burglars prefer an easy few hundred as opposed to a difficult and risky few thousand.
If you’re not confident in the security of your home or the safety of your area, then you shouldn’t store any of your investment there. Not only will you make one lucky burglar very happy, but if word spreads that you have that investment tucked away under your mattress, then it will make you a target. You are less at risk if you live in an area where burglaries are not common and if your home is newer and more secure, as mentioned above, but if word spreads of your investment then you will also become a target.
Many investors choose to store their possessions in a home safe, but this isn’t always the best solution. A home safe will stop a friend, a family member, a member of staff or anyone else who passes through your home from stealing your gold. It will ensure it is bolted down, accounted for at all times. If it is a fixed safe, it will also put it out of reach of criminals who rob your home while you are sleeping or on holiday. If it is strong enough, a safe may also protect your investment from fire and other potential damage.
But it makes the situation worse if you are the victim of a home invasion, and if criminals think that you have enough of value to warrant such an act, then they will do it and you may get hurt or killed in the process.
So, know your area, keep your home secure and make sure your stash is out of sight and reach.
Tips: Do Not Tell Anyone
You should never tell anyone about your investment. This includes your friends and your family members. You may think that you can trust them, but they may also think that they can trust their friend, who then tells their friend, who then tells their friend…before you know it, everyone knows about your stash, including all of the town’s criminals.
As mentioned above, this can cause some serious problems and may put your life, and the life of your family, at risk. Everyone has something of value in their home these days. We all have smartphones, tablets and computers and criminals know this, so they are not going to get excited about the prospect of stealing a Panda gold coin or two. But like a game of Chinese Whispers, when gossip spreads, it gets out of control, so your stash of a handful of coins might have turned into a haul worth tens of thousands by the time the criminals find out.
So, regardless of the size of your stash, do not tell anyone about it. If you have a particularly large hoard and wish to show it off then be very careful. Gold stackers like to create Youtube channels, websites, blogs and more to show off their mountain of gold, but unless you are very careful you could be leaving behind a trail of evidence that leads directly to your door.
In these cases, always use a fake name and alias, never give away your location, even if it’s just a vague approximation, always exclude yourself from the Whois searches (you will need to pay extra for this) and do not use usernames, email address or anything else that you have used elsewhere. If you use the same username to post videos of your gold stash as you used to signup to Twitter, a forum or anything else, then it just takes a simple Google search for a criminal to get the details they need.
Try to Get Insurance
It may not be easy or cheap to get insurance for your investment, but if you insist on keeping it in your own home, it is advisable. Be honest with the insurance company, because while a few white lies might be able to skim several bucks off your premium, it could also make things very difficult for you if anything happens.
If you plan on increasing your stack over time, then quote a higher amount than what you actually have, as that way you will be covered for future purchases as well as spot price increases. In many cases, your investment may actually be covered on the home insurance that you already have, and if it is not, then it may just be a case of making a few changes to increase the value of the contents of your home. In most cases they will ask what the most expensive item in your home is and what the value of this is. If you give calculate how much gold you have now and estimate how much you will add over the course of a year, then you can give them that total. When it exceeds that amount by some way, then you can simply amend your insurance quote.
Is It Worth It?
This is a question that you should always ask yourself. With the added risk, the insurance premiums, the purchase of a home safe and the delivery of the gold itself, is it worth the time and the money? In many cases, the answer will be a resounding no. However, just because it’s too expensive and too impractical to store all of our investment in your home, doesn’t mean that you can’t hold onto a few gold bars.
Many investors prefer to keep the bulk of their purchases in a secure vault, ready to sell for a profit when the price of gold increases. To ensure they have something tangible, they purchase a few rare coins, bullion coins or a gold bar or two on the side. This is still a part of their total investment and it is still something they can profit from when the time comes, but it means that their nest egg is not at risk.