While it's true that you can keep your gold at home, many investors prefer a custodian. Be sure to look for safe options for storing your gold before you buy it, and keep in mind that safe storage increases the costs of your gold investment. In reality, there are only three ways to store your gold: keeping it at home, using a bank's safe, or paying an outside storage company. You should be aware of any potential Gold IRA scam and always do your research before investing in gold. Are there risks to consider if you increase your stocks of precious metals in your country? There is no perfect, completely risk-free storage solution.
In addition, a bank is not required to compensate you if your gold or silver is stolen or destroyed while they are in a safe, reports the Times. In addition, Clark says, gold can be deposited as security to receive a loan, which avoids the tax consequences of selling the product. If gold moves against you, you will be forced to contribute significant sums of money to maintain the contract (called margin) or the broker will close the position and you will suffer losses. This means that the gold and silver you have at home may be more susceptible to theft (unless your home is closed like Fort Knox).
A gold or silver ingot is probably the only type of precious metal you can afford to be “tough” with. If you choose your home as a warehouse, one expert suggests keeping half of the gold and silver in a safe in your home and the other half in a bank safe. These are some of the main benefits of gold, but investment, like all investments, is not without risks and drawbacks. Investing in gold isn't for everyone, and some investors continue to bet on companies with cash flow instead of relying on someone else to pay more for the shiny metal.
Then there's the question of what would happen to your gold or silver if it were stored in a bankrupt bank. In addition, since gold does not produce cash flow, in order to make a profit with gold, investors must rely on someone else to pay more for the metal than they do. This question may make you think of a sunken treasure, which usually refers to gold discovered in the oceans. If you don't want to have the trouble of having physical gold or dealing with the fast pace and margin requirements of the futures market, a good alternative is to buy an exchange-traded fund (ETF) that tracks the commodity.
Although he began by buying gold bars in the form of ingots, Small says he has recently bought American Eagles and Canadian Maple Leafs because he believes that “they are more fungible. The biggest advantage of using futures to invest in gold is the immense amount of leverage you can use. Storing gold at home can prove to be the most expensive route and in many more ways than just financial. Regardless of the storage option investors choose, most agree that peace of mind is worth its weight in gold.