How to store precious metals

Look for an independent rating rather than marketing words like "security safe". A UL Residential Security Container (RSC) label means the safe resisted a short attack of about five minutes. A UL TL-15 or TL-30 rating means the door resisted an expert with tools for 15 or 30 minutes, and costs much more.

A UL Class 350 rating (for example, "350 one hour") means the inside stayed below the temperature at which paper chars for that time. Bullion rarely melts in a house fire, but assay cards, plastic holders, paper records and collectible coin surfaces can be ruined.

A safe that isn't anchored to the floor or wall can be carried off and opened elsewhere. Bolt it to concrete where you can, and avoid places a thief can work unseen, like a detached garage.

A safe announces that something valuable is inside. Some people add a less obvious hiding place, or split holdings between a safe and somewhere a burglar is unlikely to look. The first places thieves check are the main bedroom, closets, drawers and the freezer.

Standard homeowner's and renter's policies usually have a low special limit for money, coins and bullion, often only a few hundred dollars in total. To cover more, ask about a scheduled personal property rider or a separate collectibles policy. Expect to provide an inventory, receipts or an appraisal, and possibly to keep the metal in a safe.

A one-off cost for the safe and its installation, plus any extra insurance premium each year. There are no storage fees, but a good safe and a proper rider are not cheap.

FDIC insurance covers deposits such as checking and savings accounts. It does not cover anything inside a safe-deposit box. If the contents are stolen or damaged, the bank is usually liable only if it was negligent, and the rental agreement often limits what it will pay.

You have to insure the contents yourself. Some homeowner's policies extend a small amount of cover to a bank box; for more, ask about a rider or a specialty policy that names the box as the location.

You can only reach the box when the branch is open, which usually means weekday business hours and no weekends or holidays. In an emergency, a bank closure or a branch shutdown, you may not be able to get to it.

Many banks have stopped offering new boxes or have waiting lists, and larger boxes are the hardest to get. Box sizes are small, so bulky silver may not fit.

Add a co-renter or check how your state handles access after a death; in some states it can be delayed until an executor is appointed. If the rent goes unpaid for years and the bank can't reach you, the contents can eventually be handed to the state as unclaimed property.

Yearly rent based on the box size, sometimes discounted for account holders, plus a drilling fee if you lose the keys, plus whatever you pay to insure the contents.

Your metal is kept physically apart from everyone else's, often in its own bin or shelf, and you get back the exact coins and bars you deposited. It's the clearest form of ownership and usually the most expensive.

Specific bars or coins are assigned to you on the vault's records and are legally yours, but they may sit alongside other customers' metal. Some vaults use "allocated" to mean you get back identical items rather than the very same ones, so read the agreement.

You own a claim on a share of a pool of metal, not specific bars. It's usually the cheapest, but you are closer to being a creditor: if the provider fails, you may have to wait in line with others. Taking delivery may cost extra or take time.

Ask who audits the vault, how often, and whether you can see the results. A good depository uses an independent auditor, publishes or shares the findings, and can give you a list of your bars or coins with serial numbers.

Ask whether the vault's policy covers the full value of what's stored, what it excludes, and whether you're named or covered directly. Get the answer in writing.

Usually a yearly fee worked out as a percentage of the value stored, with a minimum charge, or a flat fee for a set amount. Segregated storage costs more than allocated or pooled storage. Expect separate charges for deposits, withdrawals, shipping and sometimes transfers.

Keeping IRA metal at home, in your own safe or a bank box, generally counts as taking it out of the IRA. That can mean income tax on its value and, if you're under the usual age limit, an early-withdrawal penalty. The US Tax Court has ruled against home-storage arrangements, despite marketing that says otherwise.

Only bullion that meets minimum purity standards qualifies, plus a few named coins. Collectible and graded coins generally can't be held in an IRA.

You can't take the metal home without a distribution, which is taxed like any other IRA withdrawal. You can usually choose to receive the metal itself or have it sold for cash.

Expect a setup fee and a yearly fee from the custodian, a yearly storage fee from the depository (flat or based on value, higher for segregated storage), and per-transaction fees. The dealer's premium on the metal itself is often the biggest cost, so compare it with buying outside the IRA.

Skin oils and moisture leave fingerprints that can turn into permanent marks, especially on proof and silver coins. Use clean cotton or nitrile gloves and hold coins by the rim, over a soft surface.

Leave bars in their sealed assay cards and coins in mint tubes, capsules or graded holders. Opening them can lower what a buyer will pay and makes it harder to prove they're genuine.

Airtight coin capsules and well-fitting tubes protect against scratches, air and fingerprints. Choose holders sold as archival-safe or inert.

Soft plastic flips made with PVC break down over time and leave a sticky green residue that can permanently damage coins. Use holders made from Mylar, polyester or other PVC-free plastics.

Silver reacts with sulfur in the air and slowly tones from gold to blue to black. Toning doesn't change the metal content, but heavy spotting can reduce what some buyers pay for bullion. Never clean coins to remove it: cleaning leaves scratches and can wipe out collector value.

Keep metal somewhere cool and dry, away from basements, bathrooms and outside walls. Put silica gel packs or anti-tarnish strips in your safe or container and replace them regularly. Keep silver away from rubber bands, felt, wool and ordinary cardboard, which can contain sulfur.

List every item: what it is, its weight and purity, the date bought, what you paid, and where it's stored. A simple spreadsheet is enough.

Photograph each bar and coin, including serial numbers on bars and assay cards. Insurers often ask for this before paying a claim.

Keep every invoice. When you sell at a gain, your cost basis decides the tax, and the receipts prove it. More in how to sell precious metals.

File box rental agreements, depository statements and bar lists, audit reports, and your insurance schedule, and check statements against your own list.

Store a copy of your inventory and paperwork away from the metal itself, such as in a password manager or with your will, so a fire or theft doesn't take both.

Metal prices move, so the value on your insurance schedule can drift out of date. Check it once a year and after any big purchase or sale.