A gold bullion vault is designed to do one thing …
Protect your gold.
A bullion depository is the safest place to store gold and one of the few places authorized by the IRS for Gold IRAs.
Let’s have a look at the the pros and cons of storing gold in a bullion vault.
Safest storage – in a purpose built bullion depository.
Your bullion is insured (not always possible for bank deposit box).
A bullion depository is the safest storage for a gold IRA.
Paper work for delivery and storage of gold available at all times.
Easy to sell gold due to paperwork and assay already in place.
Your gold is safe and segregated from other bullion in the vault.
Check the fees you pay to store your gold are reasonable.
Can be expensive if you have $5,000 or less in gold bullion
Let’s learn more about bullion depositories …
Why Store your Gold in a Bullion Vault?
Quite simply… a bullion depository is the safest place you can store your bullion.
If you are buying bullion for your retirement – we think it should be stored at a bullion depository.
In fact, it is an IRS requirement that gold IRA storage uses an approved storage facility – such as an authorized bullion depository.
Even if your retirement gold ($5,000 worth of gold and above) is not held in a Gold IRA, we recommend using a bullion depository. It really is the safest, most practical way to store your gold.
Are there exceptions?
Gold Bullion Storage Terms
As you may have seen from our gold glossary, the metals industry has a language all of its own.
Let’s demystify some of the bullion storage terms for you …
Segregated bullion storage – the specific gold bars or coins that you legally own are stored in the bullion vault in a separate container to the gold or metals of other investors. If you wanted to claim your gold, your specific bars or coins would be taken from the vault and returned to you.
Allocated bullion storage – the specific gold bars or coins that you legally own are stored in the bullion vault alongside the gold or metals of other investors. Your gold is not stored in a separate container. If you wanted to claim your gold, your specific bars or coins would be taken from the vault and returned to you.
Unallocated bullion storage – you have legal title to a fraction of a larger weight of gold held in a bullion vault. You can withdraw the amount of metal from the storage but the bullion depository will select the gold that matches the weight and fineness of gold you have purchased. You do not own specific bars or coins of gold.
We recommend you only consider segregated or allocated storage. It is important to have legal title over specific gold bullion bars and coins.
A bullion depository is a purpose-built secure facility designed to store precious goods, currency, metals and belongings.
These facilities are run by specialist logistics and bullion companies to service their clients. These companies are often involved in the management of cash movements for banks (you’ll see their armored trucks from time to time).
Bullion storage companies are focused on building trust with their customers by securely storing gold, other precious metals, valuables and currencies.
We have listed a few depository companies below. You can visit their websites to learn more. We are not recommending one company over another, we wanted to give you an idea of the types of company that run bullion depositories. It’s all part of your education!
Typically you do not deal with bullion depositories. You buy your gold via a bullion dealer – who will then arrange storage at a bullion depository.
Everything is documented – the weight, amount, date of purchase and price and the gold is certified to an approved level of fineness. You have a complete record of your gold and its storage.
Let’s have a look at some of the better known bullion depository companies.
Brinks, founded in Florida in 1859, are known for their dedication to safely delivering currency, valuables and bullion around the world. Today, Brinks operates in over 100 countries and has an annual revenue of in excess of $3 billion.
Brinks is a fully insured global security company that manages ATMs, cash collection, currency transactions and logistics for customers all over the world. They manage the movement of gold from mines to refineries and from there to their own bullion depositories.
Their authorized bullion depository in New York is used by the NYMEX/COMEX gold exchange and their gold warehouse facilities in London are accredited by the LBMA.
Transcontinental Depository Services (TDS)
Transcontinental Depository Services (TDS) are a subsidiary of A-Mark Precious Metals, a metal trading company with $7 billion in annual revenues.
TDS are authorized purchasers for the U.S. Mint, Royal Canadian Mint, The Perth Mint and the UK Royal Mint.
All TDS storage facilities are fully segregated and double audited to give customers complete trust in the storage of their precious metals.
Goldcore offers customers a range of services including bullion trading, bullion management and family office management for high net worth families.
With over 4,200 clients worldwide and over $110 million in assets and under storage, Goldcore have been providing precious metal services to US residents since 2003. Goldcore analysts are regulars on CNBC.
With depository facilities in Delaware, New York, Hong Kong, London, Zurich and other locations, customers can have their gold delivered to safe locations around the world.
We’re including the United States Bullion Depository at Fort Knox, Kentucky in our list because it is the best known gold bullion depository in the world.
However, you won’t be able to store your gold in Fort Knox.
It’s only for the Federal Government and no visitors are allowed!
Here are some fun facts (amaze your friends!):
- It is estimated 2.3% of all gold mined in human history is stored at Fort Knox.
- That’s approximately 147.3 million troy ounces or about $175 billion if you take a gold spot price of around $1,188 an ounce.
- Built in 1936 at a cost of $561,000 and located 30 miles south west of Louisville, Fort Knox received its first gold shipments by rail in 1937.
- The largest holding of gold was in December 1941 with 649 million ounces safely stored.