Precious metals investing is a great way to diversify a portfolio, but you must store the metals. A gold IRA provides excellent benefits for storing gold and silver, offering professional vault storage and annual audits. The following are some tips on how to store gold and silver securely with a gold IRA.
Choose a Reputable Gold IRA Company
Not all gold IRA companies are created equal. Do research and only work with an established company with a solid reputation. Look for recommendations from objective third parties. Always ask a professional in this situation rather than family and friends. The company should have relationships with secure, insured vault depositories. They should also be able to walk you through the setup process smoothly.
Select an Accredited Vault Depository
The gold IRA company will have partnerships with various vault facilities. Research the background and credentials of potential depositories. An accredited facility will be recognized by organizations like the Professional Numismatists Guild or the Industry Council for Tangible Assets. Look for a depository with robust security features, insurance coverage, and a long history in precious metals storage. Geographic diversification of vaults can also help mitigate risks.
Allocate the Gold and Silver Strategically
Most gold IRAs allow you to diversify across gold, silver, platinum, and palladium. Consider allocating the metals strategically based on your investment goals. For example, some investors use gold as an inflation hedge and silver for added growth potential. You can also choose between physical coins/bars or precious metals funds. Talk to the gold IRA company representative about asset allocation strategies.
Use Segregated Storage
Reputable gold IRA depositories will provide segregated storage, meaning the metals are stored separately from other investors’ holdings. Verify that the metals are properly segregated and that you hold direct title to them. Segregated storage prevents the commingling of assets and reduces risks if the depository ever becomes insolvent.
Request Independent Audits
To provide transparency, the gold IRA depository should conduct annual audits by an independent third-party firm. These audits help ensure the metals are properly accounted for and actually exist in the vault. You can request to see audit reports for peace of mind. Frequent auditing also deters any potential mismanagement by vault employees.
Insure Your Holdings
Be sure the gold and silver are fully insured by the depository, covering risks like theft, fire, floods, or damage. Many accredited facilities provide $1 billion or more in insurance coverage. You may also consider supplemental insurance through the gold IRA company, if available, for added protection. Review all insurance policies carefully regarding coverage scopes and limitations.
Stay Informed with Account Statements
The gold IRA company should provide regular statements documenting your metals holdings. Carefully review the statements and alert the gold IRA custodian promptly about any discrepancies. Statements can help you monitor the portfolio and ensure your holdings are accurately reflected.
Storing gold and silver securely helps ensure that the precious metals are protected and available when needed. Follow these tips to store a gold IRA safely with a reputable company and accredited vault depository. Do due diligence in researching storage facilities and providers to give yourself peace of mind.