The situation in Greece in 2015 provided a stark warning to precious metal owners in the west. The closure of the Greek banking system not only prevented Greeks from withdrawing more than sixty euros per day from their accounts for over three weeks, but also prevented them from gaining access to safety deposit boxes held within banking establishments.
The Greek restrictions on access to safe deposit boxes highlight the importance of storing precious metals, such as gold and silver, outside of banking systems. Many banks offer storage facilities, allowing their customers to use safe deposit boxes to store valuable items. In return for the privilege, customers must pay an annual fee to the bank. However, the behaviour of the banks prove beyond reasonable doubt that they cannot be trusted to look after the interests of their own depositors.
Before the current Greek financial crisis began, many Greeks bought gold and silver in the hope that it would partially insulate them from the potential collapse of the Greek financial system. The twisted irony is that Greek precious metal owners were also locked out from accessing the very assets they purchased to help protect them.
Storing precious metals in a safe and secure environment is vitally important. You should have a storage strategy in place before you complete the purchase of your precious metal. Remember, as explained above, do not store your precious metals within banking establishments.
When the time comes for you to decide how you will store your gold, you have a couple of options, each with their own advantages and disadvantages.
Professional storage services
Self-storage
Professional storage services
It is possible to store gold within secure facilities outside banking establishments. A simple Google search brings up many companies offering these very services. It is important to do your own research to establish the credibility of companies offering such storage services. Some companies may be more reputable than others so it's important to shop around. Storage is often available in multiple countries around the world. Insurance is often offered as part of the storage contract.
Advantages:
Storage is typically highly secure
Insurance is often offered as part of the package
Disadvantages:
No immediate access
Not on your premises
Storage costs
Risk of confiscation
Home storage
Home storage is a popular method for storing precious metals for people with secure means to do so. It provides precious metal owners with a quick and easy storage strategy. However, despite the popularity of storing your metals at home, it does not come without risk. Professional criminals often have the means and expertise to break into supposedly secure storage areas. It does not even have to be a professional criminal; Your home metal collection is at the mercy of any petty thief who comes across it. You can also easily access your metals to use in emergencies, for example, financial and banking collapses.
Advantages:
Immediate, easy and quick access
No storage costs
No insurance
Disadvantages:
Home storage is typically not very secure
No insurance
High risk of loss through theft
Conclusion
Owning precious metals is a mandatory requirement for anybody serious about having some insulation to a collapse of the banking system. For small amounts of precious metal, for example, gold or silver coins, self-storage is a sensible option providing you have the means to do so. For those with the funds to buy large amounts of precious metal, consider professional storage services.