Do you take physical possession?

Discussion in 'Bullion Investing' started by physics-fan3.14, Nov 25, 2018.


Do you take physical possession of the metals you buy?

  1. Yes, I always take possession

    22 vote(s)
  2. No, I invest in a pool

    0 vote(s)
  3. No, I prefer the company to store it for me

    0 vote(s)
  4. No, I don't buy precious metals

    1 vote(s)
  5. I prefer bacon

    6 vote(s)
  1. physics-fan3.14

    physics-fan3.14 You got any more of them.... prooflikes? Supporter

    When you buy gold or silver, do you always take physical possession? Or do you participate in a pool? Or do you allow the company you buy from to store the metals for you?

    The reason I ask is because I was just reading a very alarming article on CoinWeek:

    It seems like there have been quite a few precious metals companies over the past couple decades accused of fraud. Is this a rampant problem?

    And, I guess to wrap this up in a bow, how do you prevent yourself from being defrauded?
    Seattlite86 likes this.
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  3. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    I keep all my silver in my home safes and all my gold in the banks safe deposit box. I am far too old fashioned to not be in possession of my goods.
  4. myownprivy

    myownprivy Well-Known Member

    I really enjoy buying gold and silver as not just an extra savings but also because I really enjoy collecting it. I'm under no illusion that it will make me rich, but I purchase it in case my income, my investments, my savings all fail. Then it'll be nice to have this "collection" I can sell. I also treat it as a collection of designs I enjoy buying. Those are full ounce gold and silver Maples I "stack" plus fractional gold I buy based on the lowest premium and random silver bullion I buy for the same reason. Those "randoms" are the more interesting part of my collection, as I've built up a real variety over the years.
    Last edited: Nov 25, 2018
  5. ToughCOINS

    ToughCOINS Dealer Member Moderator

    In my opinion, physical possession is an absolute must. I don't even trust in custodial firms which service Gold / Silver IRA accounts. Gold and silver are fungible assets which, once sold off by the custodian, can never be identified as yours. Therefore, despite legitimate claims you might have to misappropriated assets, you could not prevent their resale by new owners, since the assets allowed in such accounts are generic, and not readily identifiable as yours. It's a very different situation with serial-numbered assets, or those which are identifiable from photographs.

    Yes, there have been some very high profile cases, and likely even more of the less publicized variety over the years. Whether due to losses from leveraging the assets on account, to siphoning for gambling or drug habits, to willful concealment of family or employee theft, or to other forms of poor judgment I suspect most, if not all of them began as well-intentioned ventures, but got out of hand for one reason or another.

    Humans are flawed and, as good as their intentions are, I believe it is very easy for all of us to get in over our heads before we realize we are there. I include myself in that statement.

    How do I prevent myself from being defrauded? By taking complete control of what I invest my money in, in as much as i am able to. My 401K account is the sole exception to that rule.
  6. Seattlite86

    Seattlite86 Outspoken Member

    Any metals I have purchased go in my direct possession, and then are eventually tucked safely away.
  7. Santinidollar

    Santinidollar Supporter! Supporter

    Letting someone else “store” your gold is an open invitation for fraud. So is participating in pools. If you don’t want to have physical possession of the metal, an exchange traded fund (ETF) is the only remotely safe alternative I see.
  8. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    I combine all my valuables coins,bullion,cash and yes even my guns
    Was sick and tired of having everything in different places, so now
    Everything is consolidated in one place so i have easy access :)
  9. myownprivy

    myownprivy Well-Known Member

    Where would that be?
    No guns allowed in safe deposit boxes either by law or rental agreement.
    Storing all your cash at home would be foolish.

    So, I'm trying to imagine what this one location is that you use?

  10. Sullysullinburg

    Sullysullinburg Well-Known Member

    Some would say storing gold/silver at home is foolish. Take the same steps with cash and it should be reasonably safe. Possession is 9/10th of the law.
    Seattlite86 and Gilbert like this.
  11. Collecting Nut

    Collecting Nut Borderline Hoarder

    If I bought it, I want it in my possession. Why on earth would I trust someone or a company to store my possessions?

    Ever heard of a pyramid scheme. This is how they start. Working with other people's money or precious metals.
  12. Gilbert

    Gilbert Part time collector Supporter

    After the big price run up in the late 1970s there were numerous cases of people being defrauded. Even though I was young at the time I remember thinking, "how foolish people are for letting someone take custody of their PMs." Back to the OP -- safety deposit boxes and storage in safe places is the only way to fly.
  13. I never understood the whole handing your metal over to some dude for safekeeping or just writing a check and then assuming the metal is actually there.

    I think its an ongoing problem and there is more to come.

    You are better off trading GLD or SLV at least its a liquid regulated market and you can even hedge your positions vis equity options. In addition to SIPC coverage in the event of securities theft.
    Seattlite86 likes this.
  14. Make sure you insure your safedeposit box and document everything in the box with time stamped pictures of items,reciepts etc..
    Seattlite86 likes this.
  15. CasualAg$

    CasualAg$ Corvid Minions Collecting

    We do much the same as RA noted above. I worry that banks might not be accessible when I need to get to my supplies, so I keep some resources at a third location.

    When are you going to need access to your PMs? That should determine where they’re stored. If a stranger controls your metals, your access is severely restricted.

    If your metals are strictly an investment then there is no need for easy, quick, access. If you’re a collector, you need to see and be close to your collection to enjoy it. Whatever a prepared person does to prepare should include trade/barter goods stashed at their prepared location(s).
    Randy Abercrombie likes this.
  16. medoraman

    medoraman Supporter! Supporter

    OP, there have been more issues than over the last couple of decades. In fact, I cannot recall a single instance where a dealer offers to store your bullion for you DIDN'T turn bad, at least going back 40 years. IDK what happens, temptation too great, cash flow issues, whatever, but it ALWAYS goes bad in my estimation.

    There really are two paths, one of physical bullion which has a higher buy/sell spread and the other of paper PM, like an ETF fund. The fund is lower fee, but how assessible if the markets freeze up? Bullion physical but having someone else hold it seems like the worst of both worlds.
    CasualAg$ likes this.
  17. CasualAg$

    CasualAg$ Corvid Minions Collecting

    There’s a research topic - PM storage services.

    I’m not a fan of ETFs. They are not fully physical at any point in time according to what some financial folks have written and access is “regional” at best. The worst of all worlds?
  18. medoraman

    medoraman Supporter! Supporter

    ETF has its place. Its a good way to invest in a metal when physical premiums are too high for instance. Right now, when markets are in doldrums, premiums are down so I just buy physical. I picked up 3 half eagles, a quarter eagle, and two one gram Englehard bars at melt this morning. At those premiums, you should buy physical IMHO.
  19. Fender Bender

    Fender Bender Member

    A good question and interesting answers.

    I've often wondered about the custodial setup where PM's aren't in your possession.
  20. COCollector

    COCollector Well-Known Member

    Physical possession in my safe deposit box. But I only have about 100 oz of silver.
  21. EdThelorax

    EdThelorax Well-Known Member

    A used 4 hour fire safe can be had for under 500$ it takes 4 grown men to move my 2x 2 1/2 x3 foot 800 lbs safe. If I am going to add risk by not holding my metal, I want the extra leverage that should come with it. A premium miner can hold 10 ounces in the ground for the price of one. I like to diversify for added safety. If my house gets robbed (unlikely as i am friends with most of the "bad" people in my town and they know I have guns and they don't know about the safe) I have silver in miners. If they go BK, i have silver in the safe. If the world is coming to an end, the silver isn't going to be near as good as a bottle of liquor box of lead or a roll of TP anyway. The price of worry is greater than that of what I would be worrying about. Stress is a killer.
    CasualAg$ likes this.
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