Should You Store Gold Overseas? International Gold Storage Options
OCTOBER 16, 2012
These days, you don’t have to be Auric Goldfinger to buy, ship, and store your gold overseas.
With prevailing uncertainty in the world's political climate and the possibility of increased regulation, international gold storage is today more common and accessible than you might think.
With a few clicks of a mouse, you can secure your precious metals at an overseas, fully insured depository at locations as geographically and geopolitically diverse as Hong Kong, Singapore, Germany, and Canada.
Yet, when considering international gold storage, many investors often overlook important factors, which could not only impact the cost, but the total outcome of your investment.
When contemplating an international gold vault, use the strategic steps below to determine if international gold storage is right for you.
Understand the Pros and Cons of International Gold Storage
1) Factor in the shipping and insurance to get your precious metals to their storage destination.
a) When you purchase gold bullion, you will most likely pay the shipping and insurance to get your metals to the gold storage facility of your choice. Even when you sell your precious metals at a later date, you will most likely need to pay for shipping and insurance to get your gold bullion back to your dealer before being paid in full.
2) Determine your monthly storage fees specific to your gold vault storage facility.
Gold storage pricing models will vary based on account value, metal type, ounces in storage, or combinations of these.
In most cases, there is going to be a charge for gold storage and a separate charge for storing silver bullion storage, so determine your potential fees with this factor in mind.
a) Try and understand your potential storage fees in the future by factoring in what your estimated overall storage fees could be if your metals were to grow to the desired value you aspire.
b) If you plan on accumulating ounces over time, then you should factor in an estimation of what the potential value could be based on your goals.
c) Your gold storage account is your ultimate safe haven money. It is best to choose a third party segregated vault storage facility where your payments are due in dying fiat currencies. Your safe haven bullion holdings should not be siphoned away in fractionalized ounce or gram fees.
3) Define what percentage of your investment you want to be in gold bullion and or silver bullion.
If you have $25,000 and want to purchase 500 coins of the American Silver Eagles (valued at approx. $ 19,000 today) and use the balance (approx >$6,000) to buy 3 American Gold Eagle coins, then depending on where you store your metals it could cost you a minimum of $60 per month in storage fees, or $720 annually.
Therefore, determine if you really want to pay storage fees for 3 gold coins or consider securing them yourself as securing gold is very doable as it does not occupy much space in comparison to silver.
Making prudent, cost benefit analysis-based decisions, could help you to minimize your storage payments.
4) Consider potential customs / duties / taxes associated with international delivery.
Verify if there are going to be any potential customs / duties / taxes once the metals are shipped into the destined country as well as when they are shipped back into another country when you sell. Some countries may have a Values Added Taxes (VAT) or a Goods and Service Tax (GST) or other forms of fees; take initiative to understand if there are any taxes / fees you will be responsible for.
5) Consider your budget overall.
If you have limited funds, the alternative is to figure out how to secure the metals yourself. For some potential ideas on home storage, see How to Store Gold At Home.
Mike Maloney says in his book Guide to Investing in Gold and Silver, page 193: "One of the things I love most about buying physical gold and silver for storage at home, segregated storage at a depository, and/or offshore storage in an allocated account, is that you are not playing their game, meaning the corporate financial industry game. Instead you are keeping your money and your investments private, away from prying eyes. You know that what you have in your possession is real. You can touch it. And best of all, it's real money"
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If you are a first-time investor you may want to consider the following plan:
First consider taking some physical possession of your metals.
Taking delivery helps you understand the process of how to order and the steps involved. Once you hold physical bullion in your hand, you get a better grasp of the weight, look, and feel of genuine gold and or silver.
Once you have accumulated, first hand, the amount you feel comfortable with, you can then consider graduating to storage either within our domestic United States and or Internationally. GoldSilver.com currently offers six segregated bullion vault options.
There are three Master / Sub-account vaults located in Salt Lake City, Hong Kong, and Singapore. There are also three direct segregated vault options with Via Mat Germany, Via Mat Miami, and Cube Global Storage in Canada. Contact your GoldSilver.com representative for further information.
Once you have acquired enough gold bullion in one vault storage facility, you might then consider geopolitically diversifying your risk by choosing another vault storage option in another country or geographic location.
This overall plan can both offer diversification of location and custodians, giving you multiple storage sites and ultimately minimizing your overall risks.
Remember to always educate yourself before taking action to ensure you make an informed decision.
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The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
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