It is typical for younger investors to hold riskier portfolios than older investors because the...
Gold and silver are in a major rally right now, fueled by safe haven buying amidst geopolitical turmoil and demand from overseas buyers, both largescale with central banks and with individual investors, particularly in Asia. Over the next few years, you will have either purchased gold and silver at current prices or you will have wished you had.
That makes right now the perfect time to add to your allocation, and then look at the best ways for storing your precious metals.
The most important reason to own gold is for purchasing power protection… wealth insurance. That is the thinking behind our motto of Keep What’s Yours!
We define gold as wealth insurance as…
“The store of purchasing power, with high liquidity, for a potential financial crisis you hope to never have.”
For gold to fulfill this function, it must be close at hand. When you have an emergency, you need to put your hands on your gold quickly and exchange it easily for cash to eliminate your financial crisis. Therefore, we strongly suggest you start accumulating gold by taking delivery of your metal. But once you have enough gold and silver on hand to meet immediate financial threats safely, it's time to look to the professionals to store the balance of your gold and silver allocations.
As your net worth increases, so should your gold and silver allocations as a percentage of your portfolio. World Gold Council recommends an allocation of 8-12% based on various surveys. To ensure that all of your eggs are not in one basket, spread that wealth out among a number of reputable storage facilities, in various locations, domestically and abroad. The more spread out your wealth is, the safer your portfolio will be.
Storing Precious Metals in a Depository
A reputable depository will offer a state-of-the-art facility with all the necessary security features, have a management team and staff experienced with precious metals investors, and maintain 100% insurance coverage for all assets stored at full market value at all times.
Precious metal depositories offer significant advantages in terms of storing and protecting your precious metal assets. Not only do they provide enough space to house a large amount of bullion, but enhanced surveillance and monitoring practices keep your metals safe.
For American investors, two options exist; storage at a domestic facility located within the United States, or at an international facility located abroad. Each have their own distinct advantages, and a savvy investor may choose to store a share of their metals in both a domestic AND an international location to achieve geographic diversification, a prudent approach to mitigate against a catastrophic event occurring in either location.
Once an investor has committed to storing precious metals at a secure storage facility, he or she must then decide “What is the best location?”.
Domestic Storage
The United States domestic market offers several options located within proximity of major geographic hubs and
financial centers. The key advantage of storing precious metals domestically is the convenience of being able to visit, pick-up or drop-off your holdings within a half-day’s travel. Further advantages include not having to cross an international border, complete custom documents or pay potential taxes or tariffs.
International Storage
For investors seeking to store precious metals offshore, depositories in a foreign country offer access to a variety of well-respected jurisdictions, providing critical diversification away from risks associated to their home country.
If you’re interested in learning more about storage options for your metal, ASI has long-standing business relationships with several storage facilities, both domestically and abroad. Give us a call at 1-800-831-0007 or email us, and our Preferred Client Representatives will walk you through your best options to accomplish your objectives.
