Many silver and gold buyers forget one of the main reasons to buy physical silver and gold bullion today is due to the world’s current fragile financial system.
Some even make the mistake of buying physical bullion and then storing it in a Safe Deposit Box at their local bank.
Why is that a mistake?
Safe “deposits” held within regulated bank boxes are not very safe, nor private, nor FDIC insured deposits.
Here are some major drawbacks of putting bullion into Safe Deposit Boxes:
- Most likely not insured by the bank.
- In the USA, the FDIC does not ensure your “Safe Deposits”.
- The IRS can freeze and even seize your box.
- A Safe Deposit Box is not cost effective for bulk silver storage.
- Difficult to diversify internationally via Safe Deposit Boxes.
- Safe Deposit Boxes are subject to bank holidays (for example during 9/11 banks were closed in the USA. Brink’s Salt Lake City remained open for business).
- In the USA, bank Safety Deposit Boxes are beholden to bank regulations.
Reprinted with permission from GoldSilver.com.