Buying physical gold has, since time immemorial, been a popular method for protecting wealth and diversifying investments to guard against economic crises or inflation. But being a valuable asset, you can't just store gold anyhow. It would be best to store it in a place with maximum security to prevent it from being stolen.
Due to money markets instability, investing in physical gold is an excellent idea for hedging against inflation. Paper assets like stocks and bonds hold no real value meaning in periods of economic turmoil their value could easily go to zero.
However, gold is a real value and its value remains even in dysfunctional economies.
The problem with gold, and particularly gold held for IRA purposes is that you need to store it in an IRS-approved facility. Storing IRA gold in any other place other than in the regulated facilities could attract hefty penalties.
Looking for a good gold storage company? We explore 5 companies that meet all the basic IRS rules.
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Gold Broker
Goldbroker is an online platform that allows individuals to buy and store physical gold and silver in secure vaults worldwide, offering a safe and efficient way to invest in precious metals.
GoldCore
Goldcore.com is a full-service precious metals dealer that offers a wide range of gold, silver, platinum, and palladium products for purchase, storage, and delivery to individual and institutional investors.
J.Rotbart & Co.
J. Rotbart & Co. offers comprehensive expertise in gold and silver investment, including buying, selling, storage, transportation, assaying, and financing of precious metals, providing a full-service solution for investors.
Sprott Money
Sprott Money is a precious metals dealer and investment platform that provides individuals with access to bullion products, storage services, and investment resources to help diversify their portfolios and safeguard wealth.
GoldSilver
GoldSilver is a precious metals dealer and investment platform founded by Mike Maloney, offering individuals a range of gold, silver, platinum, and palladium products for wealth protection and investment purposes.
Best Precious Metal Storage Companies in 2024
Here is our top-rated list of highly reputable companies for the storage of precious metals like gold;
1. Gold Broker
GoldBroker is an all-rounded company that offers efficient storage for precious metals. It provides secure storage facilities in places like Freeport in Singapore, New York in the USA, Toronto in Canada, and Zurich in Switzerland. Gold Broker's storage partner, Malca-Amit, manages the mentioned storage facilities and has been in business since 1963.
An outstanding feature of this company is the direct access to the firm's storage facility. Members can visit the storage facility physically by giving a 48-hour advance notice. They are even allowed to withdraw or inspect their metals during the visit.
While the 1.5% service fee of one's total assets value may seem high, it's a worthy investment considering GoldBroker's flawless security and high-quality service.
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2. GoldCore
This gold storage company focuses on customer satisfaction and high-quality security of valuable assets. GoldCore partners with Loomis, a trustworthy company that provides flawless security and convenient storage of assets.
Most importantly, the company partners with Inspectorate International (a global precious metals audit firm), which audits its storage facilities to ensure they meet required gold storage standards.
For gold storage, the company uses the 164-year-old Brinks to transport and handle precious metals, which is a great assurance of total security. The 1% asset value per annum may be a bit high, but it's worth the service you will receive.
One thing we absolutely love about GoldCore is how efficient their deposit and withdrawal processes are – there are literally no delays here.
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3. J.Rotbart & Co.
This company is great for low-volume and high-volume investors thanks to its remarkable service to each customer. The company responds promptly to customer questions on mobile or email and outlines the investment process efficiently to its customers.
Moreover, there are top-notch storage facilities in several countries, including Singapore, Toronto, Hong Kong, Zurich, and New York.
Unlike some storage companies with no insurance, J.Rotbart & Co. has extensive insurance that provides liability cover for your exquisite metals in case of damage or theft. Nevertheless, customers must call the company to get information since their website doesn’t expressly state everything - a slight inconvenience at best.
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4. Sprott Money
Sprott Money is a "whole package" offering investors efficient storage services. Different precious metal storage locations exist in the USA, Ontario, British Columbia, Singapore, Switzerland, and the Cayman Islands. This gives customers a variety of gold storage places.
All the storage facilities are highly secure and managed by reputable companies like International Depository Services and Brinks.
The company provides relatively low charges of 0.35% yearly of total asset value on accounts valued at less than 5 million dollars. This is pretty affordable compared to the other competitors on this list.
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5. GoldSilver
GoldSilver is an efficient precious metal storage company that has gained customer trust by offering affordable, valuable metal storage services. For example, customers who want private vault storage only pay 0.6% of the total value of assets per month.
That's not all; the company partners with renowned depositories like the International Depository Service and Brinks for secure transportation plus storage of metals. The quick liquidity option is a unique feature that most customers love.
Furthermore, the company collaborates with a community of buyers who can bid and directly purchase your assets without you having to do the spadework.
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Key Factors to Consider when Choosing a Storage Company for Your Precious Metal IRA?
Using a self-directed IRA (Individual Retirement Account) is among the best ways to protect your future financial investment. This retirement account allows you to invest in precious metal assets like silver and gold rather than money.
Here are some factors to guide you in the selection;
Why should One Avoid Storing their IRA Gold at Home?
To avoid potential tax penalties. And provide safety for your IRA investment. Storing gold on home premises rather than in an IRS-approved depository can result in heavy fines and disqualify your IRA.
Home gold storage may be vulnerable to theft and lack the level of security given by professional depositories.
Most insurance companies don't cover gold stored at home; you will have to pay very high premiums for the few that do.
IRS Possible Penalties for Home Gold Storage
Though storing IRA gold at home may be appealing, and even some companies may advise this, take it as a red flag. This is because the IRS doesn't allow the storage of IRA gold at home, and you will face the following consequences;
- Tax implications - Though some people prefer to store gold at home, the IRS considers it a distribution and thus taxable.
- Penalties - Apart from paying taxes, if you are found storing IRA gold at home, you will pay associated penalties if you are below 59½ years old.
Conclusion
Investing in gold is a big milestone in securing financial stability and diversifying your retirement portfolio. Since home gold storage isn't advisable, choosing the best gold storage company may be challenging due to the many available options.
Luckily, we've made this easier by giving you valuable gold storage insights and analyzed some of the best reliable companies. However, navigate each company's potential benefits and risks before making a decision.
