-- Posted 1 August, 2004 | | Source: SilverSeek.com

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 $20,000 in 100 oz bars (roughly 30 bars).   The weight would be 30 x 100 oz (troy) = 3,000 oz 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 oz bar is approximately 6.5” x 2.5” x 1.25” or roughly 20.3 square inches.  The total volume of our 30 – 100 oz bars 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 x 9” wide x 6” tall.  A luggage carrier with rollers would also be helpful with the weight.  If you can not roll the silver to your destination you would need to break it up into small 50 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 weights 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 oz bars.

Finally you can store your silver bullion in your own home/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 on Richard Feynman – Nuclear Physicist (and safe cracker).   Many people are scared to death to keep $20,000 worth of silver at home hidden in a secure safe but do not think twice about parking their $40,000 car outside on the street.  Some people will keep $20,000 at home in cash that weights 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

Larry and his wife Puddy both live in the South with their two almost grown children and Haley the wonder dog.  Larry manages the family drilling company and also sells gold and silver through Silver Trading Company at www.silvertrading.net.  Please send your thoughts and comments to Llabord@silvertrading.net

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