Marla asked,

“Someone whose opinion I respect says they personally hold their gold, and do not have it in a safe deposit. Is that wise? How could one possibly secure it in that way and feel that they had done a good job?”

Continuing from our mastermind meeting, Michael Maloney answers question #4:

“Well, I don’t recommend doing one thing or another. What I do is tell everybody to do their own due diligence and do some research on these things and come to their own conclusion.

For me, I do not use a safe deposit box.

I hold the bulk of my precious metals at a third party depository that specializes in doing that and it’s fully insured…and, that’s Brinks Security. The rest I hold myself. You can do a whole lot of creative things. You can hide it creatively. You can put it in a floor safe or a wall safe or something like that. I don’t recommend one particular thing over another.

I do know that during 911 the banks were closed for an entire week. I also know after gold was nationalized in 1933, the government posted Federal agents at the banks to observe people taking things out of their safe deposit boxes. I also know that when you put it in a safe deposit box it is not insured. FDIC insurance only applies to deposits in checking accounts and savings accounts. It does not cover anything in a safe deposit box. So, you need to add that to your homeowners insurance, it’s a rider on your homeowners insurance.

And, I also know some horror stories…

After a certain number of years, if you don’t have contact with the bank, the bank is supposed to turn the contents of safe deposit boxes over to the state. The state liquidates those and adds it to the general fund to help offset the deficit.

There was a newspaper article about a lady up in the Bay area in California. Her husband was dying, he told her to go to the safe deposit box to get the will, and when she went to the bank the contents were turned over to the state a few years earlier…and this was at her bank where her checking account was. She was paying the bills on that safety deposit box every month. They turned it over to the state. In there was also a bunch of her grandmother’s jewelry that was left to her that had been appraised about $80,000 before she put it in the safe deposit box years earlier. When she got back, when she tracked all of this down, the papers had all been shredded and she got a $1,800 check from the state for the contents.

My office manager and her safe deposit box…her branch closed, they moved the safe deposit box, and the bank basically lost her safe deposit box for a month. They couldn’t find what branch it was transferred to. And so, I don’t really trust safe deposit boxes that much myself.

So, I don’t use them.

You have to decide what’s best for you, though. If you’ve got a decent quantity of precious metals, if it’s more than $25,000 or $50,000, then I do suggest having some of it at a storage facility, a depository.

Thank you very much, Marla, for the question. I hope that answers it.”

Michael Maloney of www.GoldSilver.com

To Your Success,

Larry Corbi

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