In these uncertain times, millions of people are looking for ways to protect their wealth against the possibility of a future recession. And more and more of those people are looking to protect their wealth with gold. Gold has served as a safe haven asset and a hedge against inflation and financial turmoil for centuries, and it remains one of the first assets people flee to when times get tough.
But with so many different gold investment options out there today, one of the pressing questions is how to invest in gold?
A gold IRA is one way to invest in physical gold coins or bars, and allows you to roll over or transfer existing assets from a 401(k), 403(b), TSP, IRA, or similar retirement account tax-free into your gold IRA so that you can use those assets to purchase and hold gold coins or bars. But not everyone wants to invest in gold through a gold IRA.
Even though the gold in a gold IRA is securely stored in a bullion depository, not everyone trusts the ability of the depository to get them their gold when they want it. After all, possession is nine-tenths of the law, and a bird in the hand is worth two in the bush. The appeal of being able to actually hold your physical gold coins in your hand can’t be overestimated.
That’s why many people just want to buy gold coins that they can store themselves. But then the question becomes, how to store your gold?
Once you become the responsible party, you’ll naturally want to think of how to protect your gold coins or bars from theft. You can store them at a bank safe deposit box, store them in a safe at home, or even just stick them in your sock drawer or under your mattress. Each method of storage has its own risks and drawbacks, so which is best for you?
The Best Way to Store Gold
Ultimately the best way to store gold is the way that makes you feel most comfortable. If the utility of having gold at home is more appealing than having your gold locked away at a bullion depository or a safe deposit box, then that might be the way to go. It’s worth also mentioning one cautionary tale about safe deposit boxes.
Last year the FBI raided a company called US Private Vaults, a safe deposit box storage facility in Beverly Hills, California. The government alleges that the company was engaged in a variety of crimes, including money laundering, distribution of controlled substances, wire fraud, and structuring.
When the FBI raided the company and seized its safe deposit boxes, it claimed that it wasn’t going to seize the contents of the boxes, merely the assets of the company. It claimed that it needed to open the boxes to ascertain ownership of the contents of the boxes, but wasn’t going to try to seize any assets that belonged to deposit box holders. But the FBI changed its mind after the warrant was executed and has filed to try to seize the contents of the boxes themselves, even though the box owners were not being charged with any crimes. It’s as though the FBI assumed that US Private Vaults’ customers are guilty of crimes merely by their association with the deposit box company.
Civil libertarians are very concerned with the government’s handling of this case, as it brings up significant Fourth Amendment issues. And anyone who rents a safe deposit box should be very concerned as well.
If you hold gold coins or bars in a safe deposit box, who is to say that the company whose safe deposit box you rent won’t be next on the government’s list of targets? If some bad apples use their safe deposit box to engage in criminal activity, it could land innocent deposit box owners in hot water. Even if you finally come out victorious in the end and can once again access your assets, having them tied up in litigation for months or years defeats the purpose of secure storage and of having your physical gold readily accessible.
Security and Diversification
The case of US Private Vaults also brings up an important reminder that diversification is essential. In other words, you don’t want to have all of your eggs in one basket.
How many of US Private Vaults’ customers had the entirety of their life savings in a safe deposit box? After what we’ve seen throughout history and around the world, you would think that people would understand the importance of diversification and keeping their assets spread around numerous different locations. Yet too many think it can happen to other people but never to them… until it happens to them.
That’s why, as good as a gold IRA can be, owning physical gold that you can touch and store at home can be just as beneficial. It’s one more tool in the arsenal, one more aspect of diversification, and one more way to help protect your wealth.
Goldco is proud to offer its customers both gold IRA and physical gold coin and bar options. We want people to be able to protect their wealth with gold, no matter how they choose to go about buying gold. And with over $1 billion in successful precious metals placements and thousands of satisfied customers, we think we’ve done a pretty good job of helping Americans benefit from owning gold and precious metals.
If you’re looking to buy gold, whether you’re interested in a gold IRA or direct purchases of gold coins, contact Goldco today. It’s never too late to start protecting your wealth with physical gold.