How to Choose a Reliable Precious Metal Commercial Depository
Last year, there was an investment scandal in Germany where investors entrusted a relatively unknown precious metal depository with precious metal worth over 45 million. The company was soon unreachable after the deposit, making it one of the biggest scams of recent times.
Choosing the right depository to store your precious metals is very important. With rising demand for precious metal investment in recent times, depositories have also seen a surge in demand for their services. However, there is a growing number of fraudulent companies as well.
People tend to store their tangible precious metals in their homes. If you have a precious metal IRA, the IRS requires you to store your precious metals in a depository, and you can not have it at home.
If you’re planning to invest in any precious metal, let’s look at how you can choose the best depository to safely store your precious metal investment.
How to Choose a Depository?
1. Choose a Trusted Depository
If you have decided to hire depository services for your precious metals, make sure you choose a trusted depository. You can do that by researching the company’s background and existing client base or asking them to produce references. Ask the company about any policies you fail to understand or those that might not be stated clearly. Check their business license to verify if they are authorized to store precious metals, etc. Transparency is very important when trusting a company with your wealth.
2. Know Your Purpose of Investment
The purpose of your investment will determine the depository you choose. There are multiple types of depositories, and some of them let you access your precious metals around the clock. Some of them might do it on working days only.
For example, if you store your precious metals in a bank depository, you’ll only be able to access it on a working day between 9 am and 5 pm. If you want to sell your precious metal on Saturday because the market is up, you won’t be able to since the bank doesn’t allow you to access it on the weekend.
3. Understand Your Priority
If your priority is to access your precious metal anytime because you want to trade it actively for short-term profits, choose a depository that offers automated access 24/7. If you want access to it 24/7 for a specific occasion apart from regular trading, choose a third-party depository.
For example, if you have gold in the form of jewelry, you won’t want to access it 24/7. However, in case of an event you have to attend on the weekend, you may want to get your gold out. Withdrawing the gold on Friday and waiting for the next working day to deposit it is risky, which is why you’d want a depository that gives you 24/7 access to allow your withdrawals and deposits any time of the day.
Types of Depositories
There are 2 major types of depositories, allocated storage and unallocated storage.
Allocated storage is a depository that keeps the same metal you deposit in a separate safe box. These types of storage are common for precious metals in the form of jewelry. The same metal you deposit will be returned to you when you withdraw it.
Unallocated depositories are usually used for gold coins and bullion bars as they mix your metals up with other metals. These depositories store precious metals according to criteria, for example, the weight or size of the metal, the year it was minted, etc.
You may not get the same metal back when you withdraw your metal. However, the year it was minted, and its size and weight will be the same, not affect its value.
Common Depository Options
1. Bank Vault
A bank vault is a very secure storage option for your precious metals. Storage boxes are available in various sizes, and the fee is also based accordingly. You can easily purchase more or sell your metals, all while deposited in the bank’s safe.
The downside to bank vaults is that they are not accessible 24/7. You will only be able to access your precious metals on weekdays during working hours.
2. Automated Safe Deposit Lockers
Automated safe deposit lockers are another option for you to store your precious metals. These safe deposit boxes are automated, meaning they don’t require human intervention and are accessible 24/7 with your right identification and authorization.
However, not many of these deposit boxes are available. You might have to travel long distances to access one of these storage facilities. Moreover, technical issues with the programming or the automation can lead to a system breakdown and delays.
3. Third-Party Depository
There are multiple third-party depository services available in the United States. These companies offer safe storage and transportation of your precious metals. If the company is an international entity, it can also provide you with an option to trade in foreign countries.
Third-party depositories are safe and offer much more accessibility to precious metals compared to banks, making them a good option for storing your precious metals.
Thoroughly checking the reputation of the company before depositing your precious metals is necessary, though. Not all companies are reliable and financial scams are on the rise.
Secure Vault Storage for Precious Metals
If you’re looking for a reliable depository for your precious metals, Orion Metal Exchange can help. We are a top-rated precious metals exchange company with a five-star rating on Trust Pilot. We offer secure vault storage for gold and silver for your precious metals at affordable rates.
Moreover, we also offer precious metal investment company purposes. You can buy gold bullion bars and coins online, as well as silver, platinum, and palladium. We have insured home delivery services throughout the United States to ensure your precious metals reach you safely!
Reach out to us now to get more information!