Precious Metals Depository Guide

Most people know the value of an Individual Retirement Arrangement (IRA) but may not know how precious metals can be stored in an IRA as well. A gold or silver IRA is a self-directed IRA that allows individuals to invest in physical precious metals like gold and silver and have tangible assets in their portfolios. If you’re interested in investing in gold, silver, or other precious metals, a precious metal depository offers a secure place to store them. Here, Noble Gold Investments shares more information about precious metal depositories, how they work, and their advantages.

What Is a Precious Metals Depository?

A precious metals depository is a secure, third-party storage facility where precious metals like gold and silver can be safeguarded. Both individuals and institutions can utilize precious metal depositories to ensure the safekeeping of their valuable investments through high-level security systems. These depositories are most often used when storing larger quantities of metals that can’t be safely kept at a home or business. Depositories have advanced security measures in place, including surveillance, access controls, and armored transportation. This ensures the precious metals are protected and therefore protects the clients’ assets.

The Internal Revenue Service (IRS) has requirements for individuals who hold a gold or other precious metals IRA. The rules state that precious metals must be placed in an IRS-approved depository, going straight from the dealer to the depository. This is because IRS-approved precious metals depositories must follow strict IRS guidelines that ensure the precious metal assets are stored properly and strongly protected. However, people who own precious metals outside of an IRA can still benefit from storing their investments in a depository.

What Is Stored in a Precious Metals Depository?

The most common precious metals that are stored in a precious metal depository are gold and silver. However, platinum and palladium are also considered precious and can be stored in these secure facilities as well. Precious metals can be stored in several forms, including coins, bars, or ingots (blocks).  

How Do Precious Metals Depositories Work?

Precious metals depositories are fairly simple to use, making investing in gold and other precious metals easier than you may think. However, the process will vary depending on whether the individual investor has a gold IRA or is simply looking to invest in precious metals without an IRA.

Gold IRA Process

If you’re looking to open a gold IRA with Noble Gold Investments, the process starts with opening an account. The account manager will assist you with filling out an application and getting your account set up. Once it is opened, we will link you with a precious metals IRA custodian. An IRA custodian is a financial institution that holds assets in an IRA, making sure that the account is managed in compliance with IRS rules.

The next step involves transferring funds from your 401(k) or traditional IRA to your gold IRA account. You will need to sign a transfer document so we can work directly with your precious metal custodian to roll over assets into your Noble Gold account.

Finally, you need to purchase the gold or other precious metals that will go into your IRA. You can buy the metals directly from our site and then we will ship your purchase to the depository to help keep it insured, safe, and secure. You’ll be sent proof once the process is complete. 

Investment Without IRA Process

If you’re interested in investing in precious metals or already have some, but aren’t sure about opening an IRA, you can still take advantage of the security of a depository. The process includes:

• Researching various precious metals depositories to find one that fits your needs and preferences
• Opening an account with the depository
• Depositing your precious metals by filling out a deposit slip
• Paying storage fees to account for the high-end security measures provided

You can either deposit the metals or bullion that you already have in your possession or purchase precious metals that will be delivered directly to the depository. 

Types of Depository Storage

Gold, silver, and other precious metals are tangible investments that have historically run opposite to stocks, currency, and paper-backed assets, making them a wise investment. However, they need to be stored differently than conventional sources of wealth since they are heavy and take up more space. Precious metal depositories are a great way to securely store these assets. These depositories typically offer two types of storage solutions for your precious metals, including:

Allocated Storage

Allocated storage is when your precious metals are stored alongside other customers’ metals. The items are stored in a communal location and there are no individual shelves or space dedicated to particular customers. When you store your bullion in allocated storage, it works similarly to a bank. You deposit your bullion, like gold coins, and when you want to withdraw it, you will receive the same type of bullion. However, it won’t be the same exact one you deposited. This is acceptable because bullion is interchangeable in most cases and doesn’t vary in value. Allocated storage typically costs less than segregated storage.

Segregated Storage

Segregated storage is when your precious metals are stored in a dedicated space that you don’t share with others. Your exact precious metals belong to you exclusively and they won’t be interchanged with other customers’. This type of storage often costs more than allocated storage. 

Both storage options offer strong security measures, so you need to determine which is best for your needs and your bullion.

Advantages of Precious Metals Depositories

When you’re diversifying your portfolio and investing in expensive precious metals, you want to be sure that these assets are stored securely and safely. Precious metal depositories help provide peace of mind that your precious metal investments will be secure, along with other benefits. They include:

Ample Storage Space

Many people who possess precious metals or are looking to invest in them don’t have the space or security needed to store them at home. Precious metal depositories provide ample space to store your assets and ensure they’re protected. Choosing to use a depository over home storage also helps you avoid complicated regulatory requirements that can lead to non-compliance penalties if they’re not strictly followed. It also helps to keep you and your family safe by removing high-value assets from your physical possession and having a third-party facility safeguard them. 

Strong Security Measures

By utilizing a precious metals depository to store your investments, you get the benefit of robust security measures. If you opted to store your precious metals at home, you wouldn’t get the same protection offered. These security measures often include state-of-the-art surveillance systems, armored transportation, access controls, and secure vaults. This helps ensure that the precious metals remain safeguarded when in storage and that only authorized individuals can access them. These security protocols are much stronger than those offered by home safes.

Insurance Coverage

Most precious metal depositories provide insurance coverage for stored metals, which is another major benefit of using one. This coverage helps decrease the risk associated with the loss or damage of precious metals due to unforeseen events like natural disasters, theft, or other emergencies. While these incidents are very rare, having an insurance policy on your precious metals offers peace of mind and enhanced trust in the depository. It also lets you know that you will typically receive financial compensation for any harm that comes to your assets while they are stored in a depository. 

Compliance With Regulations

Another benefit of using a precious metals depository (an IRS-approved one) is that they must follow regulatory requirements that promote transparency and accountability. These depositories also undergo regular audits to keep track of their storage and make sure your assets are accounted for. Knowing your precious metals are stored in a place that must keep accurate records and abide by strict rules lets you rest assured that your assets are being appropriately managed.

Although precious metals depositories offer many advantages, it’s also important to consider some potential drawbacks. These include the maintenance fees that will be charged for the high level of security and the IRS requirements when opening a precious metals IRA. The IRS only allows specific types of precious metals to be held in the IRA and they must meet specific fineness requirements. However, the many benefits of using a precious metals depository typically outweigh the potential disadvantages.

FAQs about Precious Metals Depositories

What Precious Metal Depositories Are Approved by the IRS?

There are currently 11 IRS-approved depositories that are permitted by the United States government to provide precious metals storage for IRAs. They include:

• Delaware Depository Service Company
• Brinks Global Services
• HSBC Bank USA
• JP Morgan Chase Bank NA
• ScotiaMocatta Depository
• CNT Depository
• Texas Bullion Depository
• Loomis International
• IDS Group (International Depository Services)
• Malca-Amit Depository
• First State Depository

Is an allocated or segregated depository better?

Both options provide secure storage of precious metals. However, some experts consider a segregated depository to be better than an allocated depository because segregated options ensure that your specific precious metals are kept separate from other customers’ items. This gives you more control and ownership over your assets. However, segregated depositories often have higher fees than allocated options. 

Is there a minimum amount you must put in a precious metal depository?

Yes, there is typically a minimum amount that you must invest in a precious metals depository. The amount depends on the depository but often ranges between a few hundred to a few thousand dollars.

Noble Gold Investments Precious Metal Depository

At Noble Gold Investments, we have more than 20 years of expertise in handling precious metals like bullion, coins, ingots, and more. Our goal is to provide our clients with a straightforward and secure way to invest in precious metals. Along with offering precious metal IRAs and free investment kits, Noble Gold also has partnerships with IRS-approved depositories to provide customers with secure storage options.

Our partnership with IDS (International Depository Services) in Dallas, Texas, has allowed us to offer our customers the first and only, private secure gold depository facility in the south for precious metal IRA storage. Our Texas Storage facility has passed strict vetting for approval as a designated storage site. Clients can choose between allocated and segregated storage and even visit the facility to see their physical gold and other precious metals.

Why Choose Noble Gold Investments?

If you need more reasons to choose Noble Gold Investments for your precious metals IRA or depository, there are plenty. They include:

• Excellent customer service: Every customer gets access to a live precious metals expert who provides vast knowledge of our products and can answer any questions.
• Transparent pricing: We maintain clear and competitive pricing structures to ensure that investors understand all costs upfront.
• Guaranteed buyback program: We will buy back any gold that you’ve bought from us with no haggling or questions asked.
• Gold home delivery: We offer safe and secure home delivery to take ownership of your precious metals that is discreet and fast. 
• Positive customer reviews: We’ve received thousands of positive reviews and high ratings across multiple platforms for our reliability and professionalism.

Types of Precious Metals We Offer

At Noble Gold Investments, we offer a wide range of precious metals for you to invest in. They include:

• Gold coins: These include American Gold Eagle Coins, Canadian Gold Maple Leaf Coins, Australian Gold Kangaroo Coins, and Austrian Gold Philharmonic Coins.
• Silver coins: These include American Silver Eagle Coins, Austrian Silver Philharmonic Coins, Australian Silver Kangaroo Coins, and 5oz America The Beautiful Silver Coins.
• Platinum coins: These include American Platinum Eagle Coins, Canadian Platinum Maple Leaf Coins, and more.
• Palladium coins: These include the 1oz Canadian Palladium Maple Leaf Coin and 1oz Credit Suisse Palladium Bar.
• Rare coins: These include 4-Piece Indian St. Gauden Set, 1854 Kellogg $20 Coin, and Morgan Silver Dollars.

Precious metal bars are also available. 

Choose Noble Gold Investments for Your Precious Metals

If you’re looking to diversify your portfolio and create a stable financial future, start a gold or precious metals IRA through Noble Gold Investments. With partnerships with IRS-approved precious metal depositories, you can rest assured that your investments will be safe and secure. You’ll also receive expert guidance and support from our Noble Gold team. Plan for your future and get started now.