If you are finally ready to plunge in and make that first time silver purchase, one of the things you have to decide is where to store the silver. By now, you probably know that you need to purchase silver as a hedge and have thought about it for awhile. There is just that nagging problem of where to keep it. Well, as they say, "the devil is in the details." This article is about those storage details that every silver owner has to deal with sooner or later.
The first thing to determine is exactly how much volume and weight we are talking about. Just for illustrative purposes figure a small silver investment of so many thousands of dollars in 100-ounce bars (roughly 30 bars). The weight would be 30 x 100 ounces (troy) = 3,000 ounces total. Note that we are talking about 205.7 pounds (avoirdupois). In metric terms, this is 93.3 kilograms. The size of a poured 100-ounce bar is approximately 6.5" x 2.5" x 1.25," or roughly 20.3 square inches. The total volume of our 30 bars at 100 ounces would be 609 cubic inches, or 0.35 cubic feet. Therefore, to carry this to a place of storage would require a box or stout bag about 13" long by 9" wide by 6" tall. A luggage carrier with rollers would also be helpful with the weight. If you cannot roll the silver to your destination, you would need to break it up into small fifty pound boxes to make it easier to carry. This is a good time to enlist the help of a friend. This much silver can be a handful to shuttle all by yourself to a bank vault.
Now that we know how much our hypothetical order weighs and measures, we need to figure out a place to store it. There are numerous places to store your silver. The first and most obvious is a bank safe deposit box. Check with your local bank for box rental rates. Be sure and list yourself and anyone else who may need access to the silver on the signature card. Most couples may want to list "Mr. or Mrs." on the box rental form. Consult with your estate planning attorney to make sure your spouse will not be locked out when you die.
Most people are not aware of several private vaults that operate with the security of banks, but without the banking regulations. These companies are more like mini-storage units that simply rent vault space. Most of these vaults are very private. Some can open the account with just a name or ID number and will allow access to anyone with the password/code and the key, much like a numbered bank account. No social security number is required at most locations. Several examples of these type storage units are the Security Center in New Orleans (located in the old Federal Reserve Building, www.securitycenter.com), Sovereign Solutions in Las Vegas (www.sovereignsolution.biz), Zurich Depository Corporation in Manhasset, New York (www.zurichdepository.com), Bank House Lockers Ltd in Middlesex, England (www.bankhouse.com) as well as many others. My favorite is the Security Center in New Orleans. Their facility was built by the Federal Reserve years ago and is quite solid. They have safe deposit boxes, lockers and closets for rent within their large spacious, two story vault.
You can also store your silver in a bank vault with a segregated storage agreement. HSBC in New York provides this service for customers with numbered 1,000-ounce bars.
Finally, you can store your silver bullion in your own home or business private safe. There are many good used bank safes on the market, if you do not mind a ding or two for a very reasonable price. The biggest cost involved can be the charge to deliver the safe and get it in place. If you choose to go with a private safe, be sure and read my past article, entitled "Richard Feynman, Nuclear Physicist (and Safe Cracker)." Many people are scared to death to keep thousands of dollars worth of silver at home hidden in a secure safe, but do not think twice about parking their car worth thousands of dollars outside on the street. Some people will keep thousands of dollars of cash at home that weighs less than a pound and will fit into a coat pocket. That same amount of silver is almost impossible for a thief to carry off by himself due to its weight.
There are many clever ways to keep your silver stored and away from thieves of all types. Just have a plan before it arrives.
Don't let your fear of where to store your silver delay your purchase any longer. Decide on a storage plan and order your silver today.
Larry LaBorde
Silver Trading Company
2 Aug 2004
