As much as its important to have a personal stash of physical gold and silver that you can access at all times, its equally important to understand the risks of owning and storing such objects of value.
Keeping physical gold and silver entails basically two risks that you need to be aware of:
1) Someone Could Steal It
This is the most obvious and likely risk of the two possibilities so one must take extreme precautions if storing at their home or place of business.
This can be a serious safety concern so never store an amount at your home that you don’t feel comfortable with.
If you do decide to store at home, here are some of the things you can do to mitigate this risk:
- Insure your gold and silver.
- Store at secure location away from your home but that you can still easily get to in case of emergencies.
- Keep your investments discrete and confidential. Basically don’t tell anyone.
- If storing at home, get a really good safe and find a great hiding place… think like a thief.
- Get a good home security service….and a very big gun!
Just whatever you do, do not store your precious metals in a bank safe deposit box!
First of all, the government can easily confiscate them, which I address below, and when there’s another financial crash the banks will most likely be closed. And this is the time that you need your gold and silver the most!
2) The Government Could Confiscate It
This may sound like an unlikely event but this has happened before and could happen again…especially if fiat currencies tank.
If this were to happen, governments will do everything they can to hold of the inevitable death of their fiat currency.
As people finally realize just how worthless their paper currency really is, they’ll be buying a ton of gold and silver which undermines the failed currency even more.
At this point, the government will blame gold and silver for the currency crash and will do everything in their power to take it away from citizens who are just trying to protect their wealth.
The last time this was done was in 1933 under President Franklin D. Roosevelt during the Great Depression, which historically speaking wasn’t that long ago.
Executive Order 6102 made it a crime for individuals, partnerships, associations, or corporations to possess gold and silver coin and bullion. They called it “hoarding of gold” which if caught carried a penalty of $10,000 and/or up to five to ten years in prison.
This unconstitutional act was justified on the basis that people were making the depression worse because they were “hoarding” gold, instead spending their wealth on goods and services using the failing dollar. An outrage then and to this day hard to imagine such a heavy handed move by the government.
There are many benefits to personally storing your physical gold and silver but if you just don’t feel comfortable with it, like myself, below are some of the alternatives…
- Stored physical ownership: just make sure you work with an allocated vault storage provider.
- Digital ownership like GoldMoney.com or OWNx.com. Again, make sure that their gold and silver is allocated and insured!
More on alternative gold and silver investments on my post The 5 Best Ways to Invest in Gold and Silver.
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