As a metals broker I am always asked about storage. I have rather strong feelings about this topic and I always advise people the following:
- Always store outside of the financial system. This means no ETF’s (Even though they are easy you should exercise caution & read the prospectus and zoom in on the custody section – if you can stay awake long enough to read it). Also this means no bank safe deposit box storage. Safe deposit boxes are the worst of both worlds. They ARE NOT insured by the bank but yet they are subject to banking regulations. It also means no commodities contracts held by financial firms like MF Global. (Jon Corzine seemed like such a nice fellow before he got into trouble betting house money and hypothecated private accounts to cover his losses.)
…..read 2 & 3 HERE
