Precious Metals Depository Accounts
Precious metals storage and safety is an important consideration for every precious metals investor, and individual needs can vary to protect your investment. For most, securing gold and silver can be accomplished with a quality safe or gun safe in your possession. For others, a physical depository account at a commercial storage facility is a more practical alternative, and this is especially true for large acquisitions of bulk metals. At IDP we can assist clients with delivery and storage of precious metals with segregated and non-segregated accounts that are held for safe keeping. For a nominal fee, all accounts are protected with armed personnel, high quality vaults and are fully bonded and insured by Lloyd’s of London. IDP has internal accounts to better assist clients with transfer, settlement and shipping with all commercial depository accounts for convenience and reliable storage of their precious metals holdings.
A commercial storage facility is ideal for pure silver bullion products like 100 ounce silver bars, 1,000 ounce silver bars or “junk bags” of 90% silver containing pre-1965 halves, quarters and dimes weighing 45 pounds each. Physical depository accounts are highly recommended for high-net worth clients or large acquisitions of pure silver bullion products in excess of $100,000. Due to weight considerations, shipping and logistics it is more cost effective to secure professional storage of bulk metals and avoid the risks of theft, damage or loss. A precious metals security vault combines the convenience of physical ownership with the liquidity of a solid cash equivalent. In other words, your physical assets on deposit represent a “store of value” that can easily be converting into cash, with settlement made by check or bankwire. Physical precious metals can also be shipped with full insurance coverage to any destination in the world via private or public common-carrier services utilizing state-of-the-art tracking systems. For depository accounts in excess of $250,000 at time of liquidation, IDP highly recommends an exit strategy similar to the advice that we provide for our Precious Metals IRA accounts with Meixler Investment Management, Ltd as indicated on this website. In these very uncertain times, a prudent exit strategy is just as important as protecting your wealth with precious metals and we are here to assist you with these transactions.
Dakota Depository Company, LLC
IDP Consulting Group, LLC uses the custodial services of Dakota Depository Company, LLC (DDC), located in Fargo, North Dakota. DDC is the largest precious metals depository in the upper Midwest and is a full-service depository and logistics firm that offers security for allocated and segregated accounts for a nominal annual fee. DDC facilities are protected with an armed staff, state-of-the-art military grade vaults, layers of redundant video/audio surveillance and fully insured by Lloyd’s of London. The core vaults of DDC are reinforced with 250,000 pounds of welded steel and concrete similar to high security Air Force installations with remote monitoring 24/7 and 365 days a year. As a valued customer you can be sure that DDC will safely secure your precious metals investment and hold all of your business affairs in strict confidence.
As indicated in this chart, storage fees are based on the segregated market value of your account. The base rate for gold and silver bullion is 60 basis points (.0060) and 75 basis points (.0075) respectively with increasing discount tiers for average account values. The base rate for non-segregated storage accounts is 50 basis points (.0050), which authorizes DDC to commingle coins and bars of different accounts. All storage accounts are billed quarterly in arrears for the previous three months with a minimum fee of $60. Your annual fees are often offset with a mere 1% appreciation or less in market value, in addition to avoiding excessive shipping fees. DDC serves individual, retail and commercial accounts with clients throughout North America including trusts, partnerships, corporations and limited liability corporations. To open an new account, simply give us a call and we can help you with this strategic alternative.
In addition to custody storage accounts, DDC also offers private “safe deposit box storage” for individuals to physically store valuables. Annual rental fees for safe deposit boxes are $99 for 3x10x22, $149 for 5x10x22, and $299 for 10x10x22 with discounts for 2-3 years. Customers must be present to access their safe deposit box and all items remain the sole property of box holders. DDC does not commingle any customer assets, and all accounts are held separate from the firm’s balance sheet or creditors. DDC is a family-owned business with 35 years of experience and is dedicated to providing exceptional security and service for all clients.
Physical Storage & Home Security
A final consideration for precious metals storage is taking physical delivery of gold and silver and safely securing these items in your home. Storing precious metals in a home environment presents different challenges that are unique to every individual and situation. Most people want physical possession of their metals in the same way that they want cash reserves in case of bank failures, bail-ins and other emergencies. A good home security safe is usually adequate for home storage needs, and we recommend Liberty Safes or American Security Safes. If you simply want to secure precious metals around your house or property, there are several ways to hide your valuables. The most basic solution is to bury your metals in the ground using PVC pipe or other containers to store coins and bars wrapped in plastic. This is a practical idea if you have a farm or large property, and be sure to tell a trusted friend or leave instructions in your will. Around your residence you can hide valuables behind walls, baseboards, paneling, ventilation vents, air ducts, electrical outlets and even in paint cans, potting soil or other places. If you have a basement there are usually several good places to conceal boxes and packages. Fire resistant safes should be bolted to the ground, and you can also use smaller safes for smaller items like Sentry Safes available at Walmart or Ace Hardware Stores.
Due to the elevated risks in the fractional reserve banking sector, we do not recommend storing valuables in a bank safety deposit box. These are not FDIC insured and major banks (like JP Morgan Chase) are issuing new policies that “you agree not to store any cash or coins other than those found to have a collectible value” in their rented safety deposit boxes. Why are the banks doing this? In this era of bank bail-ins, they want to force all of their depositors to keep their cash in the banking system to help recapitalize their failed banks like they did in Cyprus in 2013. In addition, the Department of Homeland Security (DHS) is instructing banks to restrict withdrawals during a national emergency (like a financial crisis). Gresham’s Law states that “bad money drives out good money.” With the threat of bank failures and looming financial crisis, people are diversifying out of bad paper money and inflated financial assets into the good money of gold and silver. This is why you need to secure precious metals outside of the banking system, and we can assist you with commercial depository accounts and physical delivery of metals. As a final reminder, you also need to assume a low profile in your community and you should keep all of your personal and financial affairs discreet.