What factors to consider when choosing your ideal offshore storage location?

Published on 15th December 2022

With the economic turmoil caused by the recent pandemic and war in the Ukraine, it is no wonder that investors are reassessing their investments and portfolios. At J. Rotbart & Co., we have received many inquiries about purchasing and storing physical gold and silver, so we would like to share more information about storage options for those interested in buying precious metals and storing them in secure storage facilities worldwide through our storage program.

Precious metals, such as gold and silver, purchased in bullion, coin, bars, or any other form, can offer investors the diversity they need in their investment portfolios. Gold, especially, has long been held up as an excellent safe haven and hedge to protect wealth as it is not affected by the same factors that would send other investments, such as stocks, into erratic tailspins. And unlike other investments, owning physical precious metals provide investors with easier access to liquidity, without the worry of early withdrawal fees or penalties.

Nevertheless, as with all valuables, you must make sure to securely store your precious metals. You may think that a simple safe in your house would suffice, but there is so much to consider when protecting your gold and silver. First, there are the security issues. A safe at home or work may offer you a sense of security, but do you want to risk your family’s wealth and legacy? You may want to keep some of your valuables on hand at home, but you may not want to keep it all in one place. There is the option of a bank safe deposit box, but you may have insurance matters to deal with. The safest choice is a private vault. Private storage vaults often offer a higher level of safety and security measures, which could include temperature-controlled, dual-lock, and tamper-proof containment. Also, many bank vaults offer limited times for you to access your valuables, while some private facilities offer access 24 hours a day, seven days a week.

If you want to consider even greater security, you may want to think about storing your precious metals at an offshore storage vault. To start, there is the physical distance that is mentioned in the previous paragraph. Keeping your gold and silver in a separate location from yourself does offer some peace of mind, in case something happens, such as a robbery or a natural disaster. While this may seem alarmist, you do need to think of contingencies if you want to fully protect your wealth. So, as you consider distance, you may also want to think of the political or economic stability of your home country, but also general estate planning and tax issues. You may want a location in a free-trade zone for further protection. In this case, you may want to store your valuable precious metals offshore, in another country. This could be a neighboring jurisdiction that is a short drive away, or you could choose a location that is a few time zones away but is more stable and more secure.