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Feb 13
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Are you considering storing silver in a local bank’s safe deposit box? Although safe deposit boxes appear secure and are usually very affordable, there are both pros and cons to using them for silver storage.
One disadvantage of safe deposit boxes is the lack of insurance on items stored in them. The FDIC does not insure box contents and neither do banks. However, home insurance may offer limited coverage of safety box contents.
A second "con" regarding silver storage in safe deposit boxes is the limited hours it can be accessed. Most banks only allow access to box renters during regular business hours. If you’re investing in silver in order to have a physical asset on hand in case of an emergency, a safe deposit box is not the best option.
Reports of state seizures and sales of allegedly unclaimed safe deposit box contents have raised doubts about the security of anything stored in them. Regardless of how unlikely it is, consider the remote possibility that your silver could accidentally be seized and sold off.
Size limitations are another disadvantage of storing silver in safe deposit boxes. Although their relatively small size may serve a silver coin collector well, safe deposit boxes aren’t likely to be big enough to hold large quantities of silver bullion.
Finally, although all banks have strict policies in place to safeguard the contents of safe deposit boxes, the possibility of theft cannot be completely ruled out. Due to the privacy involved in box contents, it’s unlikely silver stolen from a safe deposit box will be recovered.