Why Buying and Storing Gold at Home is Not a Great Idea
Gold does not generate income for its owners like stocks or cash savings do, making it a non-productive asset that requires careful storage planning to ensure access during natural disasters or bank holidays.
Many investors opt to store their precious metals at home in cookie jars or other hidden locations; this may not be a wise move for several reasons:
1. It’s Easy to Stolen
Home storage of gold and silver offers convenience, yet thieves have easy access to your precious metals. A safe is needed to safeguard these items against theft; discretion is key here: you don’t want anyone knowing about your stash — especially local bullion shop staff or those installing your safe — because sharing this information could lead to burglaries or even the entire stash being stolen!
One of my friends recently lost over half a million dollars worth of bullion when thieves broke into his home and took advantage of too many people knowing about its location and value – taking too great of a risk is never wise.
2. It’s Easy to Damage
Storing Gold at home can be an extremely risky venture. Finding an appropriate location and purchasing an expensive safe can leave precious metals vulnerable to theft, burglary and natural disasters.
Even when stored safely, gold can still be damaged by fire or flood. While some homeowners opt for bank safety deposit boxes to protect their Gold from such damage or theft, these containers do not cover damage or theft and only provide access during set hours of the day.
There are third-party storage companies which charge monthly fees; however, you should be mindful of any reporting or legal restrictions your country might impose when using such companies to store Gold. Furthermore, such storage providers may not protect it against natural disasters or political events which could compromise its safety and make recovering it challenging; to best secure your precious metal investments you should entrust them with professionals who provide an appropriate environment with easy accessibility when needed.
3. It’s Easy to Lose
Keep gold at home is not without risk, however. First and foremost, it requires a safe that will protect it from extreme temperatures and humidity fluctuations; secondly, insurance must also be considered; finally there’s always the chance that even with adequate security in place your gold could be lost due to fire or flood.
Safe deposit boxes offer an advantageous solution, yet still have their share of drawbacks. Accessing your gold during bank hours could prove challenging and you may need to pay insurance premiums before being granted access. Furthermore, your beneficiaries or heirs may require permission in order to gain entry.
Possession of gold can be beneficial when looking to liquidate an investment, but this requires finding buyers, negotiating prices and managing transactions yourself – not to mention missing out on tax advantages that might otherwise exist.
4. It’s Easy to Move
Gold owners take great precautions to safeguard their precious metals at home, whether that means placing fake books on shelves or stashing coins underneath the refrigerator, or even burying them in their backyard (though mother nature might have other ideas!).
Home storage of physical Gold requires both an upfront investment in a secure safe, as well as ongoing storage costs that could detract from any investment gains on your physical Gold.
Professional storage offers many advantages that make it a sound choice for those who prioritize security. Storage facilities often provide convenient buy-back services that make investing simpler; buyers may save money during settlement by forgoing shipping and insurance costs; these facilities also make auditing and transparency much simpler for investors. Deciding whether home or professional storage is best depends upon individual financial goals and risk tolerance; choosing is therefore not always straightforward.
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