Category Archives: Banking

Potential Safe Deposit Box Environment Issues For Collectible Coins, Paper Money

Last Thursday, I blogged about a March 9 article on the Numismatic News website that discussed the advantages/disadvantages of keeping precious metals in bank safe deposit boxes and other “storage alternatives.”

In that piece, Pat Heller brought up a potential issue with the safe deposit box environment for collectible coins and paper money. Under “drawbacks” with these secured containers he wrote:

There is some risk of environmental damage from the chemicals used to clean that part of the building. Safe deposit boxes are not air-tight. What that means is that any harmful ingredients in the cleaning solutions, such as bleach, may leave vapors in the air which work their way onto the surfaces of whatever is in a safe deposit box. Having said this, however, it is true that we see environmental damage much more frequently to coins and paper money that were stored in damp basements or in attics than with items stored in a safe deposit box…

(Editor’s note: Bold added for emphasis)

Hmm. Later in March I read a different piece on the Numismatic News site which highlighted another possible issue with the safe deposit box environment for collectible coins. In a March 21 blog post Dave Harper discussed a reader’s concern that safe deposit boxes constructed out of plastic rather than metal could “discolor” or “degrade the base metals” of collectible coins. Harper responded:

As for whether your rolls are safe in plastic safe deposit boxes, I have no information.

No one has written with an evaluation or experience one way or the other…

(Editor’s note: Bold added for emphasis)

For those storing/planning to store collectible coins and paper money in safe deposit boxes, it might be wise to consider these two potential issues related to the storage environment going forward. I’m willing to guess there are products available on the market today that can effectively counter any real/potential environmental damage to such items.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

Source:

Harper, Dave. “Is collecting fun or profit more important?” The Buzz. 21 Mar. 2017. (http://www.numismaticnews.net/buzz/collecting-fun-profit-important). 11 Apr. 2017.

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More On Jewelry As An Investment

No doubt jewelry often finds its way into a safe deposit box.

And wouldn’t it be nice if that prized adornment not only maintained its value but even appreciated in price while sitting in the vault?

Earlier this year the topic of jewelry investing came up on the blog when I discussed a January 17 piece on the Town & Country website entitled “Is Jewelry the Last Brilliant Investment?”

And last month, I spotted an article over on The Huffington Post website that also focused on jewelry as an investment. From Beth Bernstein in “Is Jewelry A Shining Investment For Your Future,” published on March 21:

Every five years or so, I take stock of my life. At 50, I was concerned with fitness, health, and the trials and tribulations of dating ‘again’ after the break-up long-term relationship. Today, as a 55 year-old single woman, author and sole business owner, I looked around my Manhattan Lincoln-center area rental apartment and when I take stock, I realize I have no stocks or… bonds, real estate, nor do I own my home. Had I made mistakes and questionable choices with my finances until middle age? Would I ever be able to retire?

Bernstein continued:

Recently, I was explaining this to a friend, 40-year expert in antique and signed jewelry, Michael Khoridpour of M Khordipour and founder of EstateDiamondJewelry.com. He looked down at a fine Art Deco cushion cut Ceylon sapphire with diamond surround, which rested upon my finger and then looked up at me quizzically.

“Oh Michael,” I said, “Have spent too much on my obsession with antique and period jewelry. He got straight to the point that I seemed to be missing while in my anxious state. He said, “You have a safety deposit box full of antique, signed and rare high quality pieces which have held their value and/or appreciated with time. You have assets. It might be different than real estate or paper but you have invested in your future.”

(Editor’s note: Bold added for emphasis)

It’s an interesting and enlightening read, which you view in its entirety here on The Huffington Post website.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

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Storing Precious Metals Focus Of Numismatic News Article

Yesterday, I pointed out a new “how-to” video entitled “How To Store Silver Bars And Coins At Home” by the folks over at GoldSilver.com, a global leader in gold and silver sales and one of the world’s most highly regarded investment education companies since 2005.

This comes a few weeks after a different piece about precious metals storage appeared on the website of Numismatic News. Back on March 9, Pat Heller penned an article entitled “Hard assets make soft targets?” in which he discussed the advantages/disadvantages of keeping precious metals in bank safe deposit boxes (a number of the “drawbacks” don’t apply to their private, non-bank brethren) and other “storage alternatives” including:

-“Hidden storage on your property”
-“Storage in safe or strong box on your property”
-“Precious metals vault storage”

It’s an interesting read, which you can view in its entirety over on the Numismatic News site here if you didn’t catch it a couple of weeks ago.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to taking any action- financial or otherwise- based on information found in this weblog. If this recommendation is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

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GoldSilver.com Video: ‘How To Store Silver Bars And Coins At Home’

Long-time readers of Offshore Safe Deposit Boxes might remember an April 22, 2014, blog post mentioning Mike Maloney of GoldSilver.com, a global leader in gold and silver sales and one of the world’s most highly regarded investment education companies since 2005. The founder and owner had just come out with a video in which he warned precious metals are not safe being stored in a bank safe deposit box.

These days, Maloney and gang are out with a new “how-to” video which readers might be interested in viewing. In “How To Store Silver Bars And Coins At Home,” senior precious metals analyst Jeff Clark and Mike Maloney tackle the following questions:

1. “So how do we store our silver bullion both efficiently and safely?”
2. “And should it be stored at home anyway?”

Storing silver in bank safe deposit boxes and at private, non-bank vaults is also addressed. From the video:

Should We Use a Bank Safe Deposit Box?

Easy, simple, and relatively inexpensive- those are the advantages to using a safe deposit box at your local bank. But, consider the drawbacks:

-Your access is restricted. You can only get to the bullion during regular banking hours. No evening, weekend, or holiday access. In fact, during 9/11, some banks were closed for a period of time.
-No insurance against robbery or disaster. Think about the customers whose safe deposit boxes were washed away with the tsunami in Japan in 2011.
-Lack of privacy. If the government or an aggressive attorney comes after you, they’ll thank you for the generous clue you provided them of where some of your assets are stored.
-Also, silver takes up so much space that you’d likely be forced to pay for a larger box. And it might not be an option at all. A monster box of silver is too big for most bank safe deposit boxes.

Remember, one reason we own physical bullion is to protect against the banking system. If you go this route, be aware of the risks and only place a small portion of your metal there.

What About a Professional, Third Party Vaulting Service?

Once your stash starts to grow, I recommend you consider professional storage. Your risk grows as you accumulate more metal. You don’t want to be wiped out if something happened to your stash at home.

The keys to professional storage are that your metal be held:

1. Outside the banking system
2. Fully segregated or allocated in your name
3. Fully insured, and
4. Easy online access…


“How To Store Silver Bars & Coins At Home- Mike Maloney”
(Bank/private vault discussion begins at 11:36)
YouTube Video

A nicely-done production by Clark and Maloney.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: The mention of entities marketing themselves as precious metals dealers/educators should not be construed as confirmation of services claimed to be provided or any sort of recommendation. A qualified professional should be consulted prior to taking any action- financial or otherwise- based on information found in this weblog. If this recommendation is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Maloney’s book on gold/silver investing…

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Jim Rickards On Storing Gold: ‘Don’t Put It In The Bank’

American portfolio manager, attorney, economist, and best-selling author James Rickards was recently interviewed by the London-based Tip TV Finance show. Rickards answered questions about a number of topics, including the next financial crisis and how to prepare for it. The editor of the financial newsletter Jim Rickards’ Strategic Intelligence believes physical gold should be part of preparations. He told listeners:

Keep away from the paper contracts. Get physical gold. Put it in a safe place. Don’t put it in the bank. I spent a lot of time in Switzerland. I visited… when I go to Switzerland I don’t spend much time with the banks, I spend it with secure logistics operators, vault operators, refineries- the people that actually handle the physical gold. They see gold coming out of Deutsche Bank, Credit Suisse, UBS, and others, going into Loomis and the private vault operators. That does not change the total supply of gold, but it changes the floating supply. Once you take it out of the banks there’s less available to prop up this paper gold market. The banks will probably be closed, at least temporarily. You won’t be able to get your gold

(Editor’s note: Bold added for emphasis)


“Brexit is a good separation; Scexit could be a reality- James Rickards”
(Gold discussion starts at 10:15)
YouTube Video

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Rickards’ latest book…

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