While gold (GC=F) can be valuable in times of economic uncertainty, it does come with some risk.
According to the FBI, more than $1 billion in jewelry and precious metals are stolen each year. And as gold prices rise, thieves have more incentive to steal.
To protect your investment, it is important to store your gold properly. Knowing some of the most common gold storage myths (and what you should do instead) will keep your gold safe.
learn more: How to invest in gold in 4 steps
Physical gold offers some advantages. It’s durable, durable, and if you store it at home, it’s free to store. But it can also be dangerous. Because gold is compact and portable, there is a high risk of theft. Considering the sky high price of gold right now, the theft of even a small part of your collection can result in thousands of dollars in losses.
When it comes to gold stocks, many investors rely on the advice of loved ones or internet strangers. Unfortunately, some gold storage myths are widespread (and dangerous!). These are some of the most common myths, and what you can do to store your gold properly.
Fact: 63% of all burglaries are in residential properties, costing billions in damages.
Even if you have a safe, your gold may not be safe. Most home safes are easy to open, and small ones can be quickly removed and removed from the home (giving thieves time to figure out how to open them later).
If you decide to store your gold at home, choose a safe that can be locked on your floor. And keep the safe in an unexpected place; Burglars try to check bedrooms, closets and home offices first.
Fact: Gold coverage can be very limited unless you purchase additional insurance.
Although a homeowner’s insurance policy will generally cover some gold if it is stolen, standard policies set strict coverage limits. Depending on your policy, the maximum coverage may be as high as $1,500, so you may need to add a floater or insurance endorsement to your policy to get the proper coverage. Or you can buy a single policy for your precious metals.
Fact: Good records are essential for tax reporting, insurance claims, or giving gold to family members.
Because gold is a physical, tangible asset, people often think they don’t need to keep good records. But if you don’t have the right paperwork, you can face problems when reporting capital gains from selling gold, filing an insurance claim if the gold is stolen, or leaving gold to heirs.
When you buy gold, hold on to purchase receipts, keep track of serial numbers, and take pictures of the coins/bullions or note their condition.
learn more; Gold was running all year. Here’s how to avoid tax losses.
Fact: You can store your gold in a safe place for as little as $50 a year.
If the idea of storing your gold bars, balloons, or coins at home makes you nervous, storing them elsewhere is a good decision. There are two main options:
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Safe Deposit Box: Safe deposit boxes are available through most banks or credit unions. Safe deposit boxes are located in the vault, and you must show your ID and have a key to access the box. A large safe deposit box costs $70 to $100 a year.
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Personal Storage Wallet: Some companies operate secure vault facilities. You can store gold bars, coins and other precious metals in a safe place. The cost is usually 0.5% to 1.5% of the value of your gold. If you have $10,000 in gold, your fee will be between $50 and $150 per year.
Owning physical gold can be a good alternative investment, especially during times of economic uncertainty or volatility. However, owning physical gold requires some extra precautions to keep your investment safe.
Best practices include:
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If storing gold at home, buy a high-quality safe that is attached to the floor and cannot be easily lifted.
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Avoid talking about your gold or posting it online.
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Add an endorsement or insurance rider to your homeowners insurance policy to cover your gold.
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If you keep your gold in a safe deposit box or personal wallet, buy a separate insurance policy.
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For a large gold collection, store your gold in a large safe deposit box or professional storage vault.
While gold can be a useful part of a diversified investment portfolio, it should not make up the majority of your investments. In general, experts recommend not investing more than 15% of your money in gold.
In the United States, there is no limit on how much physical gold you can store in your home. However, the longer you keep your home, the greater the risk of losing your investment due to theft.
Small amounts of gold can be stored safely if you use high-quality security bolts in the floor of your home and take proper security precautions such as installing deadbolts and a home security system. For larger collections, you may benefit from using a separate safe deposit box at a local bank or professional storage vault.
