What you should do when you decide to store silver in a Safe Deposit Box (Safety Deposit Box)
Here is what you should do when you decide to store silver in a safe deposit box (safety deposit box):
- Banks vs. Depositories: You have to decide whether you’re going to store your silver in a safe deposit box (safety deposit box) at a bank or in one at a private safe deposit vault (depository)? Your answer to this question is important, especially considering that you can increase the risk or possibility of losing your silver by making the wrong choice. In fact, to make it really easy for you, never store your silver in a safe deposit box (safety deposit box) at a bank. It is best to make use of private safe deposit vaults or depositories which are owned, managed and maintained by private companies: Firstly, depositories normally offer better security features than most banks. Security features which include: Security guards, closed circuit televisions, control rooms, fingerprint scanners, seismic detectors, dual key systems, bulletproof glass, armed response, etc. Secondly, experience has shown that many banks are not keen to make payouts relating to the loss of valuables, even when insured, when stored in a safe deposit box (safety deposit box) at their premises.Thirdly, in the instance where the bank or financial institution where your silver is stored goes bankrupt or is declared insolvent, you face the real possible of losing your silver, especially when the contents are not insured. If you read the fine print, you will see that by signing the application form for a safe deposit box (safety deposit box) at a bank, you in essence give them the right to make a claim over your assets stored on their premises. This is not the case with depositories that are independently insured and make no claims over the assets stored. Fourthly, depositories specialize in providing not only the safest possible environment for the storage of your silver (in terms of security, maintaining the correct room temperature, etc.), but it’s their primary function to provide such a storage solution. This function is secondary at best at banks, especially if one considers the numerous cases where safe deposit boxes (safety deposit boxes) had been stolen from bank vaults. In most of the cases the people affected received little or no compensation from the banks involved, and when they did, it was in the form of fiat currency or non-redeemable paper notes which simply doesn’t offer the same qualities and protection as physical silver.
- Search for a suitable depository: The next step is to search for a suitable depository as close as possible to your home or place of residence. You don’t want to store your silver in a depository in a foreign country or where you have to travel a substantial distance to access it, especially if you understand the risks attached to silver confiscation, a possible collapse of government, etc. You must be able to remove your silver from storage as fast as possible when required to do so. In fact, if you cannot hold, touch or feel your silver whenever you like, you’re in all probability not making use of the ideal silver storage solution. Yes, you can store some of your silver at a depository overseas in order to lessen the risks attached to storing it only in one country, but this is only advisable if you can keep it cost-effective. E.g. if you cannot really afford to travel overseas to access your silver, it’s best not to bother storing it there, especially if you’re like us who are admittedly highly suspicious when it comes to any paper or electronic claims.
- Consult legal representative(s): Ok, so you’ve searched and found what you deem to be the most suitable depository for your silver storage needs. Now before signing anything, you want to consult your legal representative(s) first. The reason being is because contracts can vary substantially. You simply don’t want to sign a contract where the depository totally indemnifies itself against the theft of your silver due to gross negligence on their part, etc. If they do this and you sign, believe it or not, they will be able to basically do what they like with your silver. If your silver ‘disappears’ or gets stolen under such a contract, you will only have half a leg to stand on in any court of law, and not without going through a process which is emotionally and financially very draining.
- Emergency stash (optional): Ok, so far you’ve found a suitable depository close to your home or place of residence, you’ve read the fine print of the contract and signed after consultation with your legal representative(s). Now, to take extra precaution and although optional, it is recommended that you build up an emergency stash of silver consisting of 25-100 1 troy ounce silver bullion coins, especially American Silver Eagles. This emergency stash should be securely hidden or concealed at home or in your office so that you can have almost instant access to it in case of an emergency.