Tom Dyson discusses The Four Best Places to Keep Your Gold. For those who prefer owning the physical metal as opposed to gold ETF’s and other gold derivative products, this is an informative piece.
1. Bank Safety Deposit Box
A bank safety deposit box was the first solution Michael mentioned. It is the easiest. Boxes cost as little as $50 a year. If you’re already a customer of the bank, they may even offer it to you for free.
But I have a problem with banks. What if they go bankrupt? You don’t want to get stuck banging on a locked door when you need your coins in a hurry. Second, Michael says the Feds can force banks to divulge information about your security box. They can force the bank to tell them whether or not you own a box. Then the Feds can issue a subpoena and force the bank to open it.
2. Individual Retirement Account (IRA)
For those individuals who already have an IRA and want to diversify their holdings into precious metals, this solution may work well.
To qualify for inclusion in an IRA, the gold must by pure, 24-karat gold. The Feds make one exception to this rule: They allow you to put the U.S. Eagle, a 22-karat gold coin, in your IRA.
I see a couple of big problems with buying gold in your IRA. First, you can’t put coins you already own into an IRA. You have to make a fresh purchase. Secondly, you don’t have access to the coins. A qualified custodian must keep them on your behalf.
3. Private Security Vault
Private security vaults in this context are different from banks. The companies that operate private security vaults are generally not chartered as banks, but operate as independent businesses.
Another option is to send your gold overseas to a private security vault. I like this idea. You keep your gold where it’s out of reach of the U.S. government. These private vaults don’t qualify as financial institutions, so you don’t have to report them as foreign accounts when you file your taxes. Michael recommends Safes Fidelity in Geneva and Das Safe in Vienna. These are the two safest, most confidential vault businesses in the world. You can send them your gold through the mail. Just make sure you use registered insured mail. Or you can take it there yourself.
This is an excellent solution for those with the means to travel to and from the vault. But in a real SHTF where there is a complete breakdown in society, it will be difficult, if not impossible to leave the USA, go to another country, and then bring your gold back to the US safely. Gloom Boom & Doom publisher Dr. Marc Faber recommends that American citizens hold their gold outside of the USA because of the potential for a repeat of FDR’s 1933 gold confiscation. With an opposing view, Mr. Howard Katz, as outlined in his article Confiscation of Gold believes that the current situation will not lead to confiscation as it did in the 30’s.
4. Hide Your Gold at Home
But of all the places Michael suggested, hiding gold on your property was my favorite solution. You have instant 24-hour access to your gold, and you don’t pay any storage charges. The key is, it has to be safe.
One option is to install a safe or a gun locker in a discreet part of your house. Make sure you secure the safe to the floor so a thief can’t carry it out of your house. Or you can bury the gold in your backyard or a friend’s backyard. You can buy waterproof coin tubes online or go to Home Depot and buy a PVC tube and caps to seal the ends.
OPSEC, or operational security, would be critical if this is the method chosen. If it is TEOTWAWKI, having your precious metals on hand for immediate use could be a life saver. Home access to your PM’s will allow you to dig them up quickly, put them in your BOB (Bug Out Bag) and move them quickly to your BOL (Bug Out Location).
So, before you actually buy gold or silver, take how you will secure it into consideration.