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- Gold reached an all-time high price this week of more than $3,700 per ounce.
- The value raises the stakes of safely storing personal gold stashes.
- Here are a metals dealer’s three tips for keeping gold coins and bars safe.
A recent rally in gold prices has made collectors’ stacks of the yellow metal more valuable than ever, bringing fresh urgency to the question of how to keep it safe.
For starters, most collectors aren’t taking their gold to a bank.
“About 95% of our customers want personal possession,” said Stefan Gleason, CEO of Money Metals Exchange, a large precious metals dealer in the US.
The spot price of gold topped more than $3,700 per ounce on Tuesday. It dipped following Wednesday’s rate cut from the Federal Reserve, but is still up more than $1,000, or 38%, this year. Two years ago, the price was roughly half of what it’s worth today.
It’s a pretty remarkable increase for something that could easily slip into your pocket, slide to the bottom of a sock drawer, or otherwise go missing.
Of course, gold buyers typically take more precautions with their collections, especially as they grow larger and more valuable.
1. Small amounts can be stored in a safe place at home
While fireproof safes are a popular home storage option, Gleason recommends something more discreet since a safe could attract the attention of potential thieves.
At the same time, it’s important that the secret hiding place isn’t too secret, even if it’s as simple as burying a box of bars and coins in the backyard.
“If they’re going to hide it, they need to have a trusted person who knows where it is, because people die and people don’t know where things are,” Gleason said. “Leave information with a trusted relative or relatives of where it is.”
Keep in mind, most homeowners’ insurance policies have very low coverage limits on gold — in some cases, around $200, according to the brokerage USI Insurance Services — so keeping large amounts in the house can be risky.
2. Take larger amounts to a trusted depository
As gold stacks grow — whether by physical size or monetary value —they may need to be stored outside the home.
Gleason, whose business helps store precious metals for clients, said it’s “strongly advised” that collectors avoid keeping larger amounts in their houses.
Safe deposit boxes are an option, though the Federal Deposit Insurance Corporation doesn’t insure the contents of such boxes. The FDIC also advises against storing “anything you might need to access quickly or when the bank is not open.”
Some institutions may also have policies against storing coins and bars.
Specialized companies store and insure precious metals for a fee that is typically based on the value of the holdings.
Money Metals Exchange provides such a service, taking physical gold from customers to place in one of many thousands of containers at a facility in Idaho.
“Every time that container is opened up for any reason, it’s re-audited. It’s done under cameras, multiple people involved,” Gleason said. “It’s sort of like a safe deposit box, except it’s in a vault in a big depository.”
3. Keep it secret, regardless of the amount
Regardless of the route someone chooses, there’s one big rule to keeping gold safe: keeping it secret.
Revealing too much detail about how much gold a person has or where it’s kept can invite significant risk, especially as the price rally garners splashy headlines.
“Don’t talk to your neighbors and tell everyone what you have,” Gleason said. “Part of security is keeping your mouth shut.”
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