When you’re just starting out making an investment in precious metals, physical silver can be a very attractive choice. It has been performing well steadily and is constantly in demand. Storing all that silver is something you need to consider. Bulk orders of silver cannot be stored easily at home.
For a good storage option, consider a depository. A depository is defined as a “bank or company which holds funds or securities deposited by others, and where exchanges of these securities take place.” This is a method of private and secured vault storage.
Why Choose a Depository?
Depositories are extremely popular options because of the maximum security it provides. While banks do provide storage options in safety deposit boxes and vaults, occurrences of security system failures have occurred. You may not feel comfortable storing your silver in a bank, for whatever reason.
If the above sounds like you, a depository would be a good choice. Options for segregating and allocating your silver are available. Larger amounts of silver are ideal for storage in a depository. While it is out of hand, it is safely stored and risk of theft is minimal.
These are typically maximum security facilities that fully insure the silver you choose to store. Time delays in transactions are also avoided when you store with a depository, as the company will directly ship or receive the silver as part of their services.
Consider the tax break that comes from storage in a depository. If you choose a depository in Delaware, you don’t have to pay sales tax, inventory tax, and commercial net worth tax among others.
Historically, the West Point Mint was used as a bullion depository for both gold and silver. Currently, they also mint gold, silver, and platinum bullion coins as well as gold and silver commemorative coins. At one point, the West Point Mint Depository held the largest amount of silver bullion and was called “The Fort Knox of Silver”. Now, other options are available including First State Depository, LLC; Diamond State Depository, LLC; and Delaware Depository Service Company.
First State
The First State Depository located in Delaware offers six different types of storage accounts- Individual Custody-Plus, Corporate Custody-Plus, Foundation-Charitable Trust-LLC Custody-Plus Account, Collateral Custody Account, and IRA Custody Account.
If you’re considering investing, you will probably opt for either the Individual Custody-Plus or IRA Custody Account. Annual rates for the Individual Custody-Plus Account are 0.60% of the total spot price of all the silver bullion you have stored in the First State facility. The minimum annual fee is $240.
Diamond State
Accounts offered by Diamond State Depository, located in Delaware, include Standard Custody and Segregated Accounts for personal use. Corporate and commercial accounts include the Demarcation Premium Custody Account and Collateral Custody Account, which include more detailing and attention paid to the silver.
Most investors that have not yet used depositories will likely have silver bullion worth less than $1 million. For accounts that are worth less than $100,000 of silver, the fee is 0.75% of the total spot price for Standard Custody accounts and 1.50% for Segregated Custody accounts.
Delaware Depository Services
Delaware Depository Service Company offers Standard and Premium Accounts for you to choose depending on the silver bullion in your collection and how much special attention is required. For non-segregated silver, the fee is 0.75% of the total worth and spot price of your silver. For segregated silver, the fee is 1.50% of the total worth and spot price.
Make sure to fully examine the features and services offered by all depositories before you select the one that is right for storing your silver.