Nothing can be perfect. Every good invention has some kind of drawbacks; that’s just how life is. Although gold and silver coins are a wonderful way to preserve wealth, storing them can be difficult due to their physical nature. This brings to mind the blockchain trilemma - decentralized, scalable, and secure; you are only allowed to pick two. In my opinion, precious metal coins achieve “decentralization” (non-traceable when melted) and “security” (yours as long as you put it somewhere safe), but they are not very scalable. The issue of scalability of precious metals is the topic for another day; this piece is about “security” and how to safeguard your gold and silver bullion.
When you have a substantial amount of precious metals lying around your house in unorganized piles, it’s time to start thinking about how to keep them safe. The benefit of self-custody is that you do not have to be worried about the risks posed by third parties. In theory, simply acting as your own custodian can reduce a number of risks, such as operational risk, strategic risk, and financial risk (in the event that your custodian declares bankruptcy, they will use your assets to pay off their debt). Other risks, such as cybersecurity risks, may also be mitigated. Holding physical gold or silver is, therefore, the best option.
Self-storage is great. Now what? Make sure your homeowner insurance covers your precious metals. Check to see if your homeowner insurance covers your jewelry and other precious metal. Although the answer to this question is very dependent on the country in which you were from, in most cases, the insurance will not cover precious metals, or the compensation won’t be sufficient. You may be required to look for an insurance plan that meets your requirements, and in addition to that, you will need to have evidence that you owned the precious metal before it was stolen. If you owned a Morgan Silver Dollar that was valued at a high numismatic value, say $3,000, you would need photographic documents or some other type of evidence to verify that the coin was worth that much.
Invest in a better security system. Let’s talk about the safe. If you have a substantial amount of gold and silver bullion, you should probably put some money into purchasing a trustworthy safe. The fundamental properties of a decent safe should be fireproof, waterproof, and heavy enough to make carrying it challenging. In the event of a break-in, the safe should be hidden in the least expected location. I must emphasize that safe quality is of utmost importance as it’s the last line of defense. I have watched enough safe-breaking videos to know most safe are not as safe as they should be.
[Check out LockPickingLawyer on YouTube; that guy can pick a safe in a frighteningly short amount of time.]
