Insure Gold: How to Keep It Safe

Acquiring gold is one thing, but storing it and protecting it is a whole other matter.

Even if you have found a place to store your gold somewhere safe, there could be unforeseen events coming around the corner. Are you going to rely on the FDIC? Can you insure gold?

Contrary to other assets like property, bonds, and cash, precious metals have relatively low risk.

To put it another way, it's rare that either side will break their end of the bargain while buying and selling precious metals.

Nevertheless, protecting one's investments by insuring gold, silver, and other types of precious metals after purchase is still advantageous.

Highest Risks of Losing Gold

When it comes to obtaining actual possession precious metals, burglary or theft by neighbors or acquaintances poses the highest risk of bullion ownership.

Precious metal investors should look into various insurance options to help safeguard their bullion.

Whether the valuables are kept at home, in a bank safe deposit box, a vault, or a precious metals depository, insuring your investment is a smart safeguard to have as a back-up.

Thankfully, when it comes to insuring precious metals like gold, owners have some great options to consider. We will cover a few of them here.

Options for Gold Insurance

Home Insurance

Some people use their homeowner's insurance coverage to protect collections like coins, money, and other valuable goods.

It's important to be aware that many policies limit the coverage of such products–sometimes capped at only $250.

The homeowner must make sure there is sufficient evidence to prove ownership of the items in question as well.

An illustration would be having a collection of very rare coins that, while not worth much in terms of silver content, may fetch a considerable amount of money at auction.

If restricted, you can always try to change your homeowner's coverage, either by raising the insurance maximum or by adding the precious goods to the policy in exchange for a higher premium.

Purchasing a floater policy is another option. Any loss is covered by a floater, such as losing a valuable silver coin. This includes losses that are not covered by homeowners insurance.

Any objects covered by a floater need to be taken to a professional appraiser to evaluate their worth. You will receive more coverage in the event of a loss and a higher coverage limit as a result.

Vault Facilities

For investors in precious metals who have large, valuable holdings and want the best insurance for the safety, security, access, and protection of their assets, this option is the best for them.

Third-party businesses that specialize in storing precious metals, including gold bullion, silver, platinum, and valuable coins, are in charge of running private vault depositories. These businesses, as opposed to banks or private persons, are more aware of the particular needs and demands of investors with precious metals. These businesses frequently handle the buying, selling, shipping, and insuring of such goods in one complete package.

Market values are kept track of for insurance purposes, and customers also have the extra benefit of being able to remotely check on their assets via a secure website.

When selecting a depository or vault, make sure to find out what insurance is offered. For example, does the facility have general liability insurance or insurance that specifically safeguards the precious metals stored there?

Whether you keep your gold and silver in your house or elsewhere, make sure to let two reliable sources know where it is kept in the event that something happened to you.

Some secure logistics service providers, like Brink's, G4S, Malca Amit, and Loomis, provide services that let customers safely store bullion coins, bars, rounds, or even other collectibles including high-value stamp collections, coin collections, and art collections.

Of course, there are many other companies out there from which to choose. Make sure you pick one that is reliable and well-insured!

Bank storage

Bank storage may have been one of the first things that came to your mind when you thought of insurance and storage.

The Federal Deposit Insurance Corporation (FDIC) does not insure safety deposit boxes in the United States, and most banks do not purchase insurance coverage for the contents of their customers' safety deposit boxes.

Thus, even though renting a safety deposit box from a bank may seem like a logical choice over a home safe, there are reasons to reconsider.

An extra enhancement to your home's insurance, called a scheduled personal property endorsement, may allow you to cover these metals.

There is always a possibility that a bank might be destroyed by a calamity such as a tornado or hurricane. If the bank does not have insurance coverage for its contents, including deposit boxes, you probably won't see your valuables again. You should get your own insurance if you opt to store your gold and silver in a safe deposit box.

Bullion storage at government-regulated institutions might not be the ideal choice for large quantities of silver bullion–particularly without the usage of a third-party insurance policy in place.

It is always a good idea for bullion investors to be prudent by diversifying their precious bar and coin storage outside the banking system, given that the FDIC's Deposit Insurance Fund only insures around 1% of all bank demand deposit accounts in the United States.

Final Thoughts

Many investors are moving large portions of their portfolios to precious metals such as gold, silver, platinum, and palladium since uncertainty continues to dominate the stocks and bond markets today.

Because the price of precious metals typically moves in the opposite direction of the stock market, it is a wise hedge to have against inflation and market downturns.

In the past, gold spot prices have peaked at times when equities have seen significant declines. However, for some people, the largest barrier to investing in precious metals is figuring out where and how to store their investments in gold and other precious metals.

In contrast to stocks and bonds, owning gold entails more than just having a certificate of ownership. If appropriate insurance precautions are not taken, a loss from theft or destruction of a piece of gold bullion may not be recovered.

Make sure to research how to buy, store, and secure your gold investment with the appropriate safeguards so that your investment is a successful one!

Read our Gold IRA and Gold company reviews for more information on which is the right one for you.

Information provided on this website is general in nature and does not constitute financial advice.

Disclosure: The owners of this website may be paid to recommend Goldco or other companies. The content on this website, including any positive reviews of Goldco and other reviews, may not be neutral or independent.


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