Secure Precious Metals to Protect Purchasing Power

Gold Is Real Money

Historically, precious metal coins have stood the test of time as the premier store of value. For 400 years, gold has proven to be a stable medium of exchange. This cannot be said for the fiat currencies that have come and gone throughout history. In comparison, fiat currency is a debt instrument used as a form of credit. Gold is real money that carries no counterparty risk. This means that physical gold is free from the risks associated with debt.

American financier and investment banker J.P. Morgan said it best when he stated,” Gold is money. Everything else is credit.” during his 1912 testimony before congress. With ownership of wealth comes the responsibility to maintain and protect your assets. In this article we will review the most popular ways to store and protect your tangible assets.

1. Home Safe Storage

When investing in precious metals, you have the practical option of taking possession and personally storing precious metals

When investing in precious metals, such as gold and silver coins, many investors prefer to keep their physical assets close at hand in case of emergency. A good home storage safe is an inexpensive solution to keep your possessions safe and secure.

Choose a safe that can be affixed to a foundation or wall in your home. Most safes currently sold will come with anchoring points designed for floor or wall mounting.

It’s important to utilize a safe that is waterproof and fireproof for added protection of your stored contents.

There are time limits to how long a safe can withstand a fire. A 2-hour minimum fire rating is recommended. Also, a waterproof safe is recommended to help ensure its contents remain dry.

2. Bank Depository Box

You can utilize a bank depository box to store precious metals through your local bank. They’re relatively inexpensive and are extremely secure. However, the ability to access a bank depository box is limited to the bank’s hours of operation and bank depository boxes are not insured by FDIC. A monthly or annual fee is generally required to retain a bank depository box.

3. Third-Party Commercial Storage

You can also opt for storing your precious metals through a third-party depository which are companies that provide a secure facility for a minimal fee.

It is recommended to secure your precious metals in this way as it is the safest method. Commercial storage facilities are generally insured, and the storage facility answers directly to you as the account holder of record.

Through a commercial storage facility, you can request delivery of your holdings or pick-up your assets by appointment. For your security, picture ID is required on site.

Gold Protects Purchasing Power

Paper currency values can be manipulated by government policy. As a government continues to print paper currency, the paper’s purchasing power weakens, and the costs of goods, services, and commodities rise. Gold is a commodity that must be tangibly produced as opposed to simply printed. The cost to produce gold rises with inflation. Paper currencies lose value due to excessive government deficit spending. As a government goes further in debt, precious metals will offset the loss of fiat currency purchasing power over time.

The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit. 

FAQ: Your Resource for Answers!