Gold Storage Cost: How Much Does It Cost To Store Gold

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Gold has always been a valuable asset and a popular choice for investors looking to diversify their portfolios. However, gold cannot be easily stored in a bank or brokerage account, unlike other investments such as stocks or bonds. Instead, physical gold must be stored in secure vaults or safe deposit boxes.

But how much does it cost to store gold? This article will explore the various options for storing gold and the associated costs. We will also discuss factors that can affect the cost of gold storage. Keep reading!

Different Types Of Gold Storage Options

When it comes to storing physical gold, a few options are available to investors. Each option has its advantages and drawbacks, so it's important for investors to carefully consider their needs and preferences before deciding on a storage method.

Home Storage

One of the most common ways to store gold is at home in a locked safe or hiding spot. This option can provide convenience and quick access to the gold, but it also comes with some risks. Home gold storage may not provide the same level of security as a professional vault or depository, and there is always the risk of theft or damage from natural disasters.

Bank Safety Deposit Box

Another option is storing gold in a bank safety deposit box. This can be a secure storage option for those who trust their bank's security measures. However, there may be limitations on the amount of gold that can be stored in a safety deposit box and access to the gold may be restricted during bank holidays or closures. Additionally, not all banks offer safety deposit boxes for rent.

Precious metals Depository

The most genuine option for storing gold is through a precious metals depository. These facilities are specifically designed to store precious metals and have multiple levels of security measures in place. This includes 24/7 surveillance, armed guards, and advanced technology to protect against theft or damage. Precious metals depositories also offer comprehensive insurance policy options to further protect the value of the gold stored.

The Cost Of Home-Stored Gold Bullion

While storing gold at home may seem like a cost-effective option as it does not need any storage fee, it still comes with its own set of indirect costs. These indirect costs range from ensuring the security of the gold to protecting it against potential risks and damages. Let's delve deeper into these costs associated with home-stored bullion.

Secure safe

One of the main costs associated with home storage is purchasing a secure safe for precious metals. A fireproof and waterproof safe with a strong lock is essential to protect against natural disasters or theft. These safes can range from several hundred to thousands of dollars, depending on their size and level of security.

Insurance

In addition to the cost of a safe, investors who choose home storage for their gold may also need to purchase additional insurance. Most homeowner insurance policies do not cover precious metals, leaving the owner vulnerable to loss or damage.

Separate personal property insurance policies or riders can be expensive and often have low coverage limits. This means that in the event of a loss or damage, the value of the gold may not be fully covered by insurance.

Residential security system

Another potential cost for home storage is investing in a residential security system. The cost of a professionally installed system and monthly monitoring fees can quickly add up and exceed the annual expenses of storing gold at a precious metals depository.

Additionally, maintaining a secure home environment, such as installing security cameras or hiring a security guard, can also add to the overall cost of home storage for gold. It's important for investors to carefully consider these indirect costs when deciding on a storage method for their gold.

The Cost Of Gold Storage In Bank Safety Deposit Box 

Storing gold in a bank safety deposit box may seem like a secure and convenient option for investors. However, there are some costs associated with this method of storage that should be considered.

Safety Deposit Box Rental Fees

Banks typically charge an annual fee for renting a safety deposit box, which can range from several hundred to several thousand dollars depending on the size of the box. The cost can also vary depending on the location and reputation of the bank.

Limited Storage Space

Unlike precious metals depositories, banks may have limitations on the amount of gold that can be stored in a safety deposit box. This means that investors with large amounts of gold may need to rent multiple boxes, which can significantly increase storage costs.

Insurance Coverage

Similar to home storage, most banks do not offer insurance coverage for precious metals stored in safety deposit boxes. This means that investors will need to purchase separate insurance policies or riders, which can be expensive and may have low coverage limits. Additionally, not all insurance companies may offer coverage for precious metals stored in bank safety deposit boxes.

Additional Bank Fees

In addition to the annual rental fee, banks may also charge additional fees for accessing the box or adding/removing items from it. These fees can add up over time and increase the overall cost of storing gold in a safety deposit box.

Estimated Cost Of Gold Storage In Most Precious Metals Depositories

Storing gold in a gold depository may come with a higher cost compared to other storage methods, but it also offers increased security and peace of mind for investors. The cost of storing physical gold at a depository can vary depending on the facility and location, but on average it is around 0.5% of the value of the gold per year. This means that for every $1,000 worth of gold stored, investors can expect to pay around $5 in storage fees annually.

The cost of storing gold at a depository is typically higher than other methods due to the added security measures, all-risk policy, and insurance coverage provided. Precious metals depositories often have minimum holding requirements to open an account, but some do not have a minimum level of holdings required. 

However, they may still have an annual minimum storage charge, which can range from $200 to $600 depending on the location and type of account. This fee may also vary for IRA accounts.

It is important to note that these costs can be higher for larger holdings, as some depositories offer custom quotes for accounts valued at over $5 million. Additionally, certain depositories may have higher fees for accessing or adding/removing items from the storage account.

One of the major benefits of storing gold in a precious metals depository is the insurance coverage provided. Some depositories include this cost in their overall storage fees, while others may charge an additional fee for insurance.

Ultimately, the cost of storing gold in a precious metals depository may seem high, but the added security, insurance coverage, and increased liquidity it provides can be worth the cost for many investors.

Gold Storage: Segregated VS. Non-Segregated

Segregated Storage

In a segregated storage account, the gold is physically separated and allocated to a specific owner. This means that the investor's gold is not mixed with other holdings and can be easily identified and accessed. As a result, segregated storage often comes with a higher cost compared to non-segregated storage.

The added security measures and insurance coverage provided for segregated storage accounts contribute to the higher cost. However, for investors with significant holdings of gold, this type of storage may be worth the extra cost for the added peace of mind and control over their assets.

Non-Segregated Storage

In a non-segregated storage account, the gold is not specifically allocated to a particular owner and may be mixed with other holdings in the depository's inventory. This type of storage often comes with a lower cost compared to segregated storage, but it also means that the investor does not have direct ownership over their specific gold holdings.

Conclusion

The cost of storing gold can vary depending on the method and location chosen. Storing gold at home or in a safety deposit box may initially seem like a more affordable option, but it comes with its own set of risks and limitations.

On the other hand, storing gold in a precious metals depository offers increased security and insurance coverage for investors' holdings. However, this comes at a higher cost, with annual storage fees and potential additional fees for accessing or adding/removing items from the storage account.

When considering the cost of storing gold, investors should also take into account the added benefits and peace of mind provided by precious metals depositories. Ultimately, the cost of storing gold may be worth it for those looking to safely and securely protect their physical gold investments. 

FAQs

How much does it cost to store gold?

The cost of storing gold can vary depending on the method and location chosen. Storing gold at a precious metals depository typically incurs annual storage fees, which are usually around 0.5% of the market value of the gold per year.

Do banks charge to store gold?

Yes, banks often charge storage fees for precious metals. However, these fees may vary depending on the type of account and the amount of gold being stored.

Can I store my gold?

Yes, you can store your gold at home or in a safety deposit box. However, this comes with its own set of risks and limitations.

How much does vault storage charge?

The cost of vault storage can vary, but it typically ranges from $200 to $600 per year for an average-sized account. Some depositories may also offer custom quotes for accounts valued at over $5 million.

Should I store bullion coins and collectible coins together?

It is generally recommended to store bullion coins and collectible coins separately, as their market value and storage requirements may differ. However, this can also depend on the individual's personal preference and the depository you use.

What happens if my gold stored at a depository gets damaged or stolen?

If your gold is stored at a reputable precious metals depository, it should be fully insured for its full replacement value. In the event of damage or theft, the depository's insurance will cover the cost of replacing your gold.

Can I buy gold directly from a vault?

Typically, gold must be purchased through a bullion dealer and then stored in a precious metals depository. However, some depositories may offer a purchasing service for investors who want to buy gold directly from the vault.

To cut your gold storage costs call 800-300-0715 and speak to a depository consultant for free.