It’s official: the greatest number
of responses to any article I’ve written since joining Casey Research was to Robbed!,the story of my
friend’s gold being stolen and the suggestions for storage. It’s clear the
article struck a nerve – from those who’ve also been a victim of theft, to
those who were simply looking for additional ideas for storage locations.
Based on the number and quality of
responses, I thought it would be useful to pass some of them along. Here are
the (edited) emails I received, along with our comments…
Other Stories of Stolen Gold:
“I
had 136 American gold Eagles stolen from my home... $198,500 worth of gold.
Besides the loss, I will lose the tremendous appreciation of the next few
years. So be warned: HIDE YOUR GOLD!”
“Another
sad story of robbery was the reportof a Canadian man being robbed of his
entire life savings. The article says he was punched, stabbed and tied up by
home invaders who made off with his life savings in silver bars. The two thugs,
wearing fake police uniforms, made off with $750,000 in silver the man had
bought as an investment last year.”
Comment: There are more horror
stories than I think most of us are aware of. The message is the same: the gold
and silver bullion you possess is valuable, and will be increasingly so, so
tell only one other person. And to determine if your home storage is really
secure, think like a thief: how likely would someone intent on robbing you find
or get to your valuables?
Additional Storage Locations:
“Just
wanted to offer an additional storage method... I suggest private vault
storage... only you and the one person you trust have this information. I use
Mountain Vault in the Phoenix area. Good prices: only a few hundred dollars for
3" or 6"h x 10"w x 24" deep. You can pack a lot of gold
Eagles in there!”
Comment: Private vault storage is a
great option, of course, but at this point it’s not widespread enough to make
it available to most people – and you want to be relatively close to your
precious metals. It’s also generally more expensive than most other storage
choices. The advantage it holds over a bank safe deposit box is that it’s
outside of the financial system. If you’re within an afternoon’s drive of one
and can justify the cost, it’s definitely worth checking into. Google
“depository” and your state or province.
“Some
upscale jewelry stores have storage options.”
Comment: Jewelry stores make me
nervous; they might be an easy target if Doug Casey is right about a Greater
Depression.
“There
is one other option you forgot to mention: Build a storage or garden shed out
back. Have a safe built into the floor. You can access the gold without
being seen, day or night. Tell only one other person (such as your adult
child) the combination. Do not have a key, only a combination. If you are
robbed, they will not kill you because then they won't have the combination. If
someone breaks in and heads for the shed and tries to dig it out of the ground,
tell the cops to go find the contractor who installed it!”
Comment: An alternative worthy of
consideration. Just be sure that if you go this route, the safe is protected
from the elements – you don’t want rainwater seeping in, for example. Also, my
father knew a man whose family was tortured until he gave up the combination to
his safe. While a combination safe is preferable to a key lock, don’t think you’re
immune. Keep the safe hidden and tell only one confidant. Last, hiring a
contractor is something to avoid if possible; all it takes is for them to tell
one other person.
“Bury
a pop can a foot above your buried gold so that if someone used a metal detector,
they’d find it and stop digging.”
Comment: Something to consider if
you go the “midnight gardening” route. Keep in mind, though, that all they’d
have to do after removing the pop can is wave the detector over the hole again.
“On
the subject of storing bullion and home safes, Liberty safes are some of the
best on the market. What sold me is, they will replace the safe and its
contents if damaged or broken into. I didn't find any other company with as
good a product or warranty.”
Comment: The guarantee is worth
checking into if you’re buying a home safe. However, keep in mind that no safe
is 100% secure; a safe buys you time, nothing more. Meaning, hide your safe or
store it under the floor where something could be placed over it (a
refrigerator in the garage, for example).
“Keep
two safes – a decoy one and the “McCoy” safe.”
Comment: Not a bad idea if you’re
storing a lot at home. Get a cheap safe from an office supply store for the
decoy one, and put some metal or jewelry in it that’s less valuable so the
thief thinks he got your stash.
“Keep
in mind that someone could follow you home from a coin shop.”
Comment: Yes, be alert of your
surroundings when you’re handling gold. If you suspect someone is really
following you, drive to the police station.
Also, my friend installed a security
system at his home, complete with cameras. While most of his gold is no longer
stored there, he’ll have a video recording if someone tries again. A nanny cam
could work, too, and they’re not expensive.
Bank Safe Deposit Boxes
“The
bank can access a safe deposit box only if the owner is deceased and no one
claims it.”
--
Bank official
Comment: Several readers wrote in to
say they’d been told there were circumstances under which a safe deposit box
could be accessed by the bank (confiscation) or restricted from access by the
owner (locked down during a natural disaster, for example), but most of these
comments sounded more like an internal comment from a local bank rather than a
broader instruction.
The statement above is what my local
bank told me and is generally the case with the bankers we spoke to. That’s not
to say the rules couldn’t change (and perhaps with little notice), but
generally speaking, the bigger risk here is that the contents aren’t insured
(think of the banks washed away by the tsunami in Japan).
I also got a response from Frank
Trotter at EverBank, a banker David Galland knows well and someone we trust…
“We
have always noted that there are two key elements for holding gold:
1.
If you’re holding it as an investment, then minimize the cost of holding and
maximize the liquidity. This was the concept behind the development of our
EverBank Metals Select Pooled accounts, and is in place at a number of other
institutions. We also think this should be the primary focus of investing
in gold.
2.
We do not view holding the metal as an investment, but rather a self-insurance.
If you are holding for emergency, then cost and convenience are not the primary
drivers. Of course each individual has to assess what they consider an
emergency to determine how to hold the metal, but if you are holding for
emergency, then you must control the metal directly. I think we can all
find scenarios where it would be impossible to access any business storing
anything for you; will the employees come in, are all businesses closed by
order, is there unrest near the facilities, etc. In major emergencies, it
is certainly illogical that overseas transportation would be available if that
is your selected location, and so on.
“Basically,
we view investments in metals in cost-efficient and liquid instruments to be
primary to hedge against inflation and geopolitical events, and holding metals
yourself to be the only way to effectively hedge against dislocation of civil
society.”
Coin Storage
“On
burying coins: do not put silver coins, or even gold for that matter,
directly in touch with PVC. It is highly reactive with silver, and silver is
found in most alloyed gold coins in some amount. Here's a link to a good short articleabout it. Most
coin dealers use mylar coin ‘flips’ which are hard and brittle, but I often get
sovereigns and even silver Eagles in so-called ‘soft’ flips which can contain
PVC. I remove them and put them in hard plastic non-PVC holders, of which there
are a number on the market.”
Comment: To confirm this, I spoke to
a couple dealers:
Van
Simmons/David Hall Rare Coins: “PVC holders were common,
but not any longer. The industry has changed, in part, because PVC used to
cause what was called the “green gunge,” especially with copper and nickel
coins.”
Andy
Schectman/Miles Franklin: “Over a long period of time, it
could put holes in bullion. The reader is correct that you should store your
coins in the stiffer plastic holders, not the softer “flips,” though no
reputable dealer would use those these days.”
Insuring Your Metal
“You
mentioned your friend decided not to make a claim with his insurance company
because they may not have paid it or dropped him from coverage. I talked to my
insurance agent, who is a personal friend I trust, and was told that in my case
it covers only up to $2,000 worth. I recall the underwriter wanting to know
what my safe was like, how heavy it was, etc., then wanted to know how much
gold and silver I had and in what forms (I was told there are different rules
for bars vs. coins). They also required a current appraisal of everything I
had. In the end, they would insure it as a ‘rider’ with a premium of 1.5% of
the value per year. Not only would I have been uncomfortable giving them all
the data they were asking for, but I also didn't want to pay them 1.5%
annually.”
Comment: While it may seem wise to
insure your metal, it breaks one of the golden rules of home storage – you’ve
got to tell other people what you have. If you go that route, consider who else
your agent has to discuss your policy with (corporate office, admin staff,
etc.), who has access to the paperwork, etc. Bottom line: I would pursue this
route only if you had substantial holdings, had a security system at your home,
and kept some of your holdings elsewhere.
The bottom line is to review your
storage methods so that you’re confident your physical assets are secure. If
you “think like a thief,” you might find where you need to make some changes.
And don’t forget that no storage location is 100% secure. Therefore, one
of the best ways to store your physical gold is to diversify your locations.
The more you have, the more you should utilize several methods for holding
metal.
Last, as I stated before, don’t let
this scare you off from buying bullion. It’s still the asset that offers the
best monetary protection for the foreseeable future. Not owning it may leave
you feeling robbed when you go to use your paper dollars and find they won’t
buy you as much as you thought. That’s not a theft you can prevent – unless you
own gold.
[The March issue of BIG GOLD just
named the top major gold producer in the industry – and our Buy Under price was
just hit. Find out who we think has the best potential of the million-ounce
producers, along with our recommended bullion dealer list and the coin with the
lowest premium in the industry. Try BIG GOLD for only $79 per
year today, with 3-month money-back guarantee.]
.jpg)