As soon as an investor gets serious about gold buying that person is going to run into a common problem that every gold investor has – exactly how and where is all this gold and silver bullion going to be stored? There are really only two choices for almost all investors. First, one could store the gold in their location, safe or vault. Second, an investor could pay a service to store gold for them at a cost. Anything else out there involves buying a stake in someone else’s holding of gold, which is using another buyer a proxy instead of actually owning the bullion outright.
Most private buyers start off with the means they already have available. If an investor has a bank account, there’s a good chance the person has or could obtain a deposit box. This approach is relatively safe within the confines of a physical bank. In most cases this approach works well for small collections of bullion, such as coins for example, but when someone starts to get bigger pieces it becomes impossible very quickly to hold more than one bar in a deposit box. Once a collection gets bigger than half a shoe-box, one really has to think about a larger safety deposit box or gold safe.
The Home Safe Approach
Alternatively, the private investor could store their gold at home, usually in a hidden spot or a home safe. Obviously, using a gold safe is a far more secure approach for a number of reasons. First, a hidden spot in a home is only as secure as its anonymity. As soon as the spot is found by someone, usually by accident, the security is gone. And believe it or not, accidental discovery of hidden places in a home is very common; children are exceptionally good at it given their natural curiosity. Second, the lack of a protective containment means that the gold can be harmed by anything in the environment. That could include general damage to the area or accidental damage, such as in a fire. Neither of these problems are possible or as severe with the use of a proper safe.
Security Features of Safes
Security safes are very secure once installed correctly in a home. The exterior body of the safe is designed to resist penetration by even the toughest of tools intentionally used on it. The locking mechanism, whether by key or combination or both, eliminates any casual access as well. Additionally, when the safe is installed and bolted firmly to the foundation, it’s not going to be moved without a great amount of effort. Finally, advanced safes have environmental controls that make them relatively resistance to heat or cold for certain durations. That not only protects the contents from temperature damage but it also protects them from the safe itself becoming the cause of the damage due to convective transfer of temperature (i.e. getting so hot the safe turns into an oven etc.).
There are also secondary benefits to storing your own gold in a safe versus other means. Most obvious, you won’t have to pay someone else for the use of their vault or security services. These fees, while they may seem small month to month, add up over time and eat away at the value of your investment. If one calculates the cost of fees after a couple of years of service, the cost can be significant bite into the investment profits. Further, you have access to your gold at your convenience versus the operating hours of someone else’s service. That means you can add, move, reduce or review your gold holdings when it suits your schedule. Finally, you’re in charge of your own security. There’s no lingering doubt about how secure your gold is relying on someone else as you’re in charge of the access to your safe.
Insurance for Gold & Silver Bullion
Finding insurance for gold coins, gold bars, and bullion in New Zealand can be tricky. Most underwriters and insurance companies don’t want to know about providing insurance for gold. This is firstly because they generally do not understand it and view it as “cash” – therefore highly risky. The next issue is you will require a gold safe that meets all the right international standards for the value of metal you are needing to store.
MyGold has created a solution with an insurance provider that means we can get you insurance cover for all your gold and silver holdings. Contact the team today to find our more.
The Pros and Cons of Different Gold Choices
If you’re going to be holding gold as an investment, it’s recommended to work with government-issued bullion. Bullion coins come from a recognised government and are far easier to work with in smaller forms. The most common types are issued by governments like Australia, Canada, South Africa, the U.S. and similar. These coins come in set sizes, weights and amounts. Because the value is set to a government standard printed on the coin, it functions to some extent as currency as well as bullion. That makes it easier to sell quickly through dealers and non-dealers. They are easy to stack, store and move and will fit fine in a smaller home safe.
Alternatively, if your gold holding is going to be substantial and held for a long time, then gold bars would make more sense. They account for more gold in one unit, reducing the need for handling multiple units. A larger safe, such as a floor unit or large wall unit would be a viable choice for this kind of investment approach. Again, try to favour government issued bars over private units as the government type have far easier acceptance without the cost of additional refinement testing when trading after the fact.
A Home Safe Is a Great Option For NZ
Again, a home safe can be integrated within your household very easily, giving you a very secure place in which to hold personal physical gold as well as other valuables. Find out more if the above has you really thinking about what might work for your specific needs.
ChubbSafes New Zealand
If you are looking for the best safes to buy in NZ, you can’t go past ChubbSafes – the oldest name in the safe manufacturing game. MyGold are authorised distributors for ChubbSafes in NZ and the team welcomes any inquiries.