Where To Store Gold: Securing Your Bars and Bullion Safely
Gold, as a symbol of wealth, has historically been a reliable form of investment. Its tangible nature and intrinsic worth have made it a favoured choice for Singaporeans looking to preserve their wealth over the long term.
However, buying gold carries a key precaution that must not be overlooked—secure storage. To prevent theft, loss, and damage, safe boxes are the most effective solution when it comes to protecting physical assets like gold coins, gold jewellery, and gold bullion. Let's dive into the different gold storage options you can choose from.
Why Should You Store Gold Properly?
Ensuring physical gold is kept in pristine condition is incredibly crucial—it can affect its value and acceptability by future buyers.
Retailers and financial institutions may have specific requirements for the gold they repurchase. For instance, UOB requires evidence of purchase and for the gold to be in its original, unbroken seal.
To avoid contact damage, it's critical not to store gold alongside silver or any tarnished metals. Over time, silver can oxidise, potentially compromising the appearance of gold.
Therefore, investors are highly encouraged to find proper storage to protect their gold and ensure it meets the standards for resale or trade-ins.
What is the Safest Way to Store Your Gold? (3 Storage Options)
Home Storage
Safes are a practical option for at-home gold storage. We recommend investing in models with high burglary resistance ratings. Safes and vault doors range from Grade 0 to Grade XIII, and from class TL-15 to class 3. The higher the grade and rating, the more robust the safes are against potential break-ins.
Pros:
- Burglary resistant: Safes offer customisable levels of security, deterring theft effectively.
- Low maintenance: Once installed, safes need little to no care.
- Protected privacy: A home safe secures personal items from access by others.
Cons:
- Not invulnerable: An intruder may still gain access, especially if safes are not secured properly.
- Susceptible to human error: Some may neglect to lock the safe, compromising its effectiveness.
- Extra measures needed: You might need to carry out renovations to install your safe. Pairing with alarm systems and surveillance is also advisable to maximize security.
| Home Storage | Price Range | Price Range |
| Under the bed | Free! | |
| SentrySafe (source) | $118-$3,888 |
|
| Filedex (source) | Undisclosed |
|
Grupp (source) | $268-$4,550 |
|
Read more: Home Safe Boxes: The Essential Guide to Protecting Your Valuables
Bank Safe Deposit Box
Bank safe deposit boxes are a viable option for ensuring the security of your gold. These secure storage facilities are usually reserved for bank account holders or VIP customers.
Pros:
- Reliable: Banks have a reputation as trusted, secure institutions
- Enhanced security: Located in the bank's vault, the boxes benefit from rigorous security measures.
- Customer privacy: Customers typically have privacy when inspecting their contents in a separate room.
Cons:
- Traditional security practices: Currently, all safe deposit bank vaults in Singapore use a manual safe deposit box system with dual-locking mechanisms. Users need to be escorted by a staff or security guard to a room full of safe deposit boxes to retrieve their box with 2 physical keys, one from the user and the other from the staff.
- Commitment Period: Banks often require a minimum one-year rental of their safe deposit boxes.
- Accessibility: These safe deposit boxes are only accessible during the bank’s office hours. This option may be inconvenient if you need access to your items outside regular banking hours.
Read more: All About Bank Safe Deposit Boxes in Singapore
Private Safe Deposit Box Services
Private safe deposit box services can be grouped into two broad categories:
Manual Safe Deposit Box Service
Manual safe deposit boxes are typically offered by security companies or gold trading companies. When using this service, clients are generally accompanied by a staff member or security officer to their box. Dual-key access is a common feature, requiring both a staff key and a client-specific key for entry.
Notably, with gold trading companies, clients' precious metals are usually stored collectively within a secure vault. In these cases, direct entry into the storage area by customers is not permitted.
| Manual Safe | Extra Small Box (p.a.) | Small Box (p.a.) | Medium Box (p.a.) | Large Box (p.a.) | Extra Large Box (p.a.) |
| SECOM(source) | - | $181.44 | $280.80 | $421.20 | $594 |
| Cisco*(source) | GIRO: $129Non-GIRO: $229 | GIRO: $199Non-GIRO: $299 | GIRO: $269Non-GIRO: $369 | GIRO: $439Non-GIRO: $539 | GIRO: $749Non-GIRO: $849 |
| BullionStar (source) | - | $288-399 | $488-599 | $1,088-1,279 | - |
| The Safe House (source) | - | - | Class II3000cm3 / 16kg$1,280 | Class I108,000cm3 / 202kg$1,600 | - |
*Cisco has different rates for corporate accounts
Automated Safe Deposit Box Service
Automated safe deposit boxes like STARVAULT are stored in a highly secure manless vault, where no human access is allowed (except for annual maintenance). A robot will bring to the user their safe deposit box via a secure opening in a private viewing room. This provides a higher level of privacy and security. It also allows for convenient 24-hour accessibility.
The security is further enhanced with round the clock CCTV monitoring, a state of the art alarm system, and an on-site security guard.
Users access the Safe Deposit Box in STARVAULT via a multi-layered access control system with facial recognition, card access, fingerprint verification, a PIN code, and a unique physical key.
Most importantly, any change in the user access information requires an OTP verification from the user.
Other Factors to Consider When Storing Your Gold
It's vital to know which storage options have the right environment and facilities to keep your precious metals stored safely. Here are some other factors to consider when storing gold:
1. Cost
Home storage offers the most flexibility, and does not require additional fees after the initial installation. Meanwhile, some private vaults can be very expensive. Therefore, you will need to balance the cost of storage versus the value of your gold investment.
2. Accessibility
In emergencies, the ability to reach our assets promptly can be crucial. Home storage is the best place to store gold to maintain easy access. If you're opting for external services, you need to know the facility’s operating hours and any additional charges for accessing your items outside those times. STARVAULT's facilities are open 24/7, even through public holidays.
3. Allocated vs Unallocated Storage
Allocated storage means the gold is held under your name and is physically segregated from other clients' assets. This ensures that your gold is safe and easily identifiable as your property.
On the other hand, unallocated storage means your gold is pooled with other clients' assets. There are no specific bars or coins assigned to you. You can also only store precious metal and not other personal belongings for unallocated storage.
4. Fire Protection
Your gold storage should offer robust protection alongside appropriate fire safety measures. In the event of a fire, a safe with a "UL Class 350 1-hour" rating will keep the internal temperature below critical levels for at least an hour.
Some facilities have water sprinklers. STARVAULT's storage vaults are equipped with advanced gas suppression systems so your items will not be affected by water damage if the fire protection mechanisms are triggered.
5. Security
Discuss with the facility what security features they offer, like CCTV, biometric scanners, or on-site guards, to decide which services match your gold storage needs.
STARVAULT's safe deposit facility stores all boxes in a custom-built concrete steel-reinforced vault. Continuous CCTV monitoring coupled with an alarm system and an on-site security guard ensures the safety of the deposit boxes around the clock. Our facility is also 3 minutes away from the nearest police station, ensuring a swift response time.
6. Privacy
Considering privacy, a safe deposit box maintains the confidentiality of our holdings. No one but yourself knows the exact contents, ensuring your investment's privacy.
Home storage is also a viable solution for privacy. However, if you're sharing your living space with others, private vault storage options away from the home offer greater discretion. Additionally, services like STARVAULT include another level of security and privacy by requiring users' phone or email OTP verification to change user access information or to move out of the box.
7. Insurance
Some companies, like The Safe House by Silver Bullion, provide liability protection, but often at the cost of pricier annual packages. With home storage, you may purchase a home insurance plan for your precious metals, but the security levels may not be adequate for you to obtain insurance.
As for bank and private safe deposit boxes, what you store is confidential. As such, many providers do not provide coverage as they cannot insure unknown items. Ultimately, you can get your own insurer for an added layer of confidence that your investment is protected against potential risks.
Protect Your Gold with STARVAULT Today
When securing your physical precious metals, it's imperative to consider a secure and safe storage solution that fits seamlessly into your retirement plan and investment portfolio.
At STARVAULT, you can register and get a safe deposit box immediately without much administrative hassle. We also offer flexible contract terms for both long-term and short-term storage needs, with a minimum storage period of 1 month.
If you'd like to know more, you can reach out to us or make an appointment to tour our facilities today.
