Gold – the very mention of this precious metal associates you with wealth and luxury. Ever since it appeared as a means of payment, it has become a very desirable asset. People bought it and kept it for various reasons. Today, gold is a popular investment tool and a way to preserve and increase your savings.
Most investors prefer physical forms like bullion, bars, and coins. These goods can’t disappear or become worthless overnight, which is one of the main reasons you have them in your investment portfolio. You can invest in this precious metal on your own or through a self-directed IRA.
If you opt for a gold IRA, you need to know some rules regarding this self-directed account. First and foremost, you must not keep the gold products you have purchased through this account in your home. The IRS doesn’t allow this for several reasons. The main ones are the lack of security and insight into the amount of this asset (due to taxes).
But if you have non-IRA purchase gold, you can store it at home. But, of course, there are specific rules to follow. Also, it’s clear to you that home storage of this precious metal poses a significant risk, given its great value. So it’s of utmost importance to learn how to legally store gold at home and protect yourself.
Know Your Options
After buying gold, you generally have two options – to store it yourself or through third-party vaults. These are mostly banks or certified depositories. You pay a fee for this service and get a high level of protection since these warehouses are equipped with high technology. That can be pretty expensive, but it’s far the best option if you have many gold products.
Although third-party depositories provide convenience and maximum security, many choose to keep their bars, coins, and bullion at home. Smaller amounts might be safe in your home. This method is affordable and generally secure if you adhere to certain rules and follow safety guidelines.
Find a Perfect Spot
First, you need to choose a good location to store your gold. Think of how much space these goods will take. Also, you want to hide bars, bullion, and coins somewhere secluded. So the basement and garage floors are too obvious.
Using a keypad safe in a workroom or bedroom will keep your assets out of sight. You can install it in a closet, behind the bed, covered with wall photos, etc. It can even be a hidden compartment in your wall. You can even install your safe under several layers of flooring.
Alternatively, you can dig a deep hole in your yard and bury your gold there. You can camouflage the spot with fake stones or bushes, and they will blend your landscape perfectly. Just ensure you do this ‘garden work’ discreetly, preferably at night or early morning when no one is around.
Choose the Right Safe
The more you know about the risks associated with your valuables, the safer it will be. And the basis is to use a proper strongbox for your precious metals. You have many safe models available in different sizes, features, and cash ratings. But not each is suitable for you.
A cash rating is the level of coverage this safebox can contain. This value must be high enough to cover the value of the commodities you plan to store inside the safe. It shows the security rating of this vault, and it should be high. For gold and similar valuables, this rating is multiplied by 10.
It’s always a good idea to invest in a safe that is fireproof and waterproof. These vaults usually have extra levels of protection. In this way, you protect your gold not only from theft and burglary but also from manmade accidents and natural disasters.
More tips on choosing a proper home safe are explained below:
Ensure Proper Storage Conditions
Once you have determined where to store your valuable goods, you can take precautions to protect them. They should be a hidden place, safe from the elements, corrosives, or anything that can damage your valuables. Ensure there’s no dampness or mold. Also, keep gold away from silver, as a chemical reaction can cause tarnishing.
Buy Proper Insurance
You might want to invest in an additional insurance policy to protect your precious metals. The current policy you have might not include physical gold. So you can discuss with your agent expanding the current coverage or buying a specific policy for these commodities. These will help you cope with the consequences of theft and burglary.
Keep It Secret
When it comes to security, there are some things to consider when storing gold at home. For one, it’s best to keep it secret. It’s not advisable to make your gold visible in the house. Sure, you can display a few coins if you’re a passionate collector, but don’t put your bars and bullion available to everyone.
But you should entrust this information to a single person you trust. Tell them the exact location and security codes, so they can assess your gold in case something happens to you. Here, find some tips on keeping your house safe from burglars.
If you don’t want your gold to be publicly accessible, you can opt to store it at home. But in that case, you should make sure that your values are insured and well-hidden. Also, don’t brag about that. The fewer people know about your valuables, the less problems you’ll have.