INSURANCE AND BULLION: HOW TO KEEP YOUR INVESTMENT SAFE

You’ve been building your precious metals collection and invested in some rare coins. Now, you want to protect your assets, but these are not conventional investments. So, your insurance options will be different. Keeping bullion safe is one of the challenges of owning precious metals, but worth the risk if you ensure safe keeping. We cover some of the best ways you can keep your bullion safe. 

HOMEOWNER’S INSURANCE

The benefit of owning precious metals is the ability to physically have it in your possession. For this reason, many people choose self storage, meaning storing their precious metals at home. While this is an acceptable option, be careful about relying on your homeowner’s insurance to cover a loss of precious metals. Most policies only pay up to $250 to replace bullion, coins and other similar items. So, homeowner’s insurance is not an option for insuring bullion. Instead of relying on homeowner’s insurance for self storage, the best thing you can do is fortify where you hold your bullion. 

CREATING A SAFE PLACE FOR BULLION SELF STORAGE

INVEST IN A SAFE FOR PRECIOUS METALS

A safe will protect your bullion assets in the case of a natural disaster, but make sure your safe has the following properties:

• Fire rated 
• Heavy enough to make carrying difficult 
• Protection against water damage

HIDE THE SAFE THREE LAYERS DEEP

In the case of burglary, thieves look for things they can grab and take quickly so using the three layer deep rule can mitigate the risk a thief will attempt to take the safe. This rule means putting 3 layers between the bullion and a thief. An example could be a safe stored below floorboards with a rug or cabinet over it.  

PRIVATE VAULT DEPOSITORIES WITH INSURANCE

If you have a substantial precious metals collection, home storage is not feasible. In that case, the two options for storage are banks and private vaults. Private vaults are better for a number of reasons. The main being private vaults insure your collection in the event of natural disaster or theft. They also are open 24/7, unlike banks so you always have access to your bullion. When looking for a private vault depository make sure the company you choose:

• Professionally audits and insures your bullion
• Completely segregates your assets from other’s
• Has the highest level of security like biometric access

As you can see, insurance and bullion can be complicated. If you choose home storage, the focus should be on how to keep your bullion as safe as possible to avoid needing insurance since homeowner’s policies will not cover you. If you choose a private vault, you will be insured, but make sure you’re insured for the correct amount. The representatives at the private vault should help you find the right amount of coverage for the bullion you plan on storing. 

Have more questions? We don’t blame you! With over 100 years of combined experience in the precious metals industry, our account executives are more than qualified to help you with any precious metals questions or concerns. Give us a call or email us!