Let’s be honest, low cost storage sounds like a viable option. We all love a good bargain and storage is storage, right? Well, not really, because while the price is low, the risk is high. Very high, in fact. There is a reason you pay a subscription fee for storage, and that’s because expensive vaults, as well as the technology and the staff needed to keep them running, cost money. If you are not paying for this then it means the storage company are cutting corners. And if that’s the case, then your investment will suffer somewhere down the line.
One of the most common low-cost storage solutions is a safety deposit box, whereby you store your gold in a bank’s vault, inside your own personalized box that you can access with a key. These cost money and are actually far from cheap, especially when you consider the risks involved. It is never safe to store your valuables in a central bank and that’s before you even factor in the risk of theft. The problem with these boxes is that the contents is anonymous, which creates some insurance problems. To put it simply, if there is a theft, then you could lose everything.
Let’s be realistic for a moment though. What if you only have enough money to buy an ounce or two of gold? If you store this in a vault, then the subscription fees will eat away at your potential profits. Some companies, they try to keep those fees down so that everyone can benefit, but the truth is, it’s not a viable option if you have so little. If, however, you have this amount and want to add to it on a regular basis, or if you have a larger stack, then it definitely is. That’s why they have a minimum order, because anyone who won’t benefit, simply can’t buy; while everyone that can benefit, is able to make a purchase.
If you do have such a small amount of gold or other precious metals, you should still avoid low cost, high risk solutions. Instead, keep your investment in your own home. Providing you take a few precautions you will be okay.