As gold prices surge to historic highs, more Canadians are investing in precious metals—and scrambling to figure out the safest way to store their growing collections. With gold and silver bullion moving at a rapid pace, secure storage is more important than ever. After all, once you buy gold or silver, you need to keep it protected, insured, and easily accessible when you need it.
There are three primary options for storing precious metals:
Third-party vaults
Bank safety deposit boxes
Home safes
The right choice for you? It depends on what exactly you’ve bought and how much. In addition, you have to decide how comfortable you are with storing your precious metals in a safety deposit box that doesn't include insurance!
We spoke to Global Bullion Suppliers CEO Max Smirnov to learn more about what works (and what doesn’t) when you want to store your gold and silver securely.
Ditch the Safe Deposit Box
It’s tempting to opt for a safety deposit box at your local bank. After all, most of your financial needs are fulfilled there already, and storing another asset with a brand you trust makes prudent sense.
There are some advantages to choosing this approach; banks are well-protected from fire and theft, as bank robberies are still rare in Canada: the number of bank thefts in the country has decreased substantially since its peak in the 1990s and early 2000s.
Annual fees are often reasonable compared to more expensive options, like third-party vaults and depositories.
But there’s a key disadvantage: contents of these boxes aren’t insured by the bank, forcing you to buy private insurance if you want that peace-of-mind. Example of clients losing access to their safety deposit boxes are common.
“That lack of insurance is a game-changer,” says Smirnov, adding how banks operating on standard work hours could be frustrating for some precious metals owners.
“During COVID, so many banks closed and you couldn’t access your safe deposit box,” he notes, “and some people want the opportunity to reach their assets 24/7.”
Housing Rights and Wrongs
Storing bullion in your home isn’t the safest option for a number of reasons, says Smirnov. Home burglaries could put your gold and silver at risk, and investing in security systems can be expensive.
“Storing precious metals in your home can be a risk to your family,” he adds.
Also, if you decide to insure your gold and silver, similarly to how you’d want to protect any valuables in your home, expect your home insurance rates to increase. “You don’t want it to go through the roof, which is why the best approach to storing precious metals are third-party vaults,” Smirnov suggests.
But if you collect a small amount of precious metals, under $5,000, then a home safe could be a savvy and the least costly option, Smirnov shares.
Vaulting to Greatness
The most secure and reliable way to store gold and silver is via third-party vaults, Smirnov says. They’re worth the expense, he notes.
“They have strong security, their whole business is storing expensive assets, and you can reach your gold and silver anytime of day,” he says.
Smirnov also points to a vital sector of third-party vaulting: freeports. They are a specific, premium type of third-party vaulting site known for a unique tax and customs status. These facilities are often built near a port or airport, so they can be treated as being outside the country's customs territory.
When gold or other valuables are stored in a freeport, they are considered to be in transit. That’s a valuable designation: those assets are then exempt from Value Added Tax (VAT) or Goods and Services Tax (GST) for as long as they remain inside the freeport.
As easy as home storage can be for Canadians, and as enticing as it might be to continue working with a bank to use their safe deposit boxes, choosing a trusted third-party vault remains the savviest choice when you want to protect your gold and silver.
If there’s any time to invest in a safe-haven asset like gold, it’s today. If you want to purchase gold and silver bullion or have any other inquiries about vaulting, email support@globalbullionsuppliers.com or call 1-800-427-4045.