Safety deposit boxes are often the go-to method for securing valuables. They are more secure than your home; they don’t cost a lot, and; you can store pretty much anything in there, without needing to declare what it is you are storing. It all sounds perfect, right? Except, it’s not. Far from it. Safety deposit boxes are no longer as popular as they once were, and they are nowhere near as popular as many people seem to think they are. What’s more, when it comes to storing precious metal hoards, a safety deposit box is one of the worst options of all.
We’ve all seen the heist films. The agile and super-attractive criminals tunnel their way into the bank, smash open all of the safety deposit boxes, scoop up the jewels, gold and other precious items, and disappear before anybody knows a thing.
We all know that it’s only the bank who suffers, as the owners of those boxers are all insured. Right? Well, not exactly. In fact, not at all. A safety deposit box requires no insurance. There are many reasons for this, price being one of them, but the main one is privacy. A bank doesn’t ask what you put in that box because it doesn’t need to know, but if it doesn’t know, then how can it effectively insure what’s in it?
Of course, large-scale heists are very rare, but the lack of insurance is not the only downside to a safety deposit box. In fact, there is a long list of them. During the banking crises in both Cyprus and Greece, there were times when the banks shut their doors to customers. Not only did they prevent them from getting their money, they also refused them access to the vaults and their safety deposit boxes. This was not illegal. They were well within their rights. And there’s nothing stopping that from happening in the USA and every other country in the world.
The same applies if the bank goes bankrupt. Banks seem to follow a law that applies only to them, and there is nothing to stop them from separating you from your box. They can also close for maintenance, or go on holiday if they like. Basically, if they decide to shut the vault and cut off access to your box, they can, and there’s nothing you can do about it.
Even if we ignore the lack of insurance and everything else discussed above, there are still the issues of size and price. You are limited to a very small space, and you pay a premium for it. The amount of gold and silver you can store in that space is very small, and very rarely is this enough to justify the price of the box. Investing in precious metals means you need to hold onto that investment for many years, and the less you have in there and the more you pay, the less profit you will make in the future.
That’s why it makes much more sense to invest in a storage company, where your storage capacity is more or less limitless, and the price is only a fraction more than what you pay for a safety deposit box. Even more importantly, your investment is insured against the worst-case scenario.