When you own physical silver bullion, you’ll want to store it securely. One safe option for storage of physical silver is a depository. These are units that specialize in secure storage. The state of Delaware offers two popular options- the Delaware Depository Services and Diamond State Depository.
Storage at Diamond State
Diamond State Depository is located in New Castle, Delaware and accepts storage of the four precious metals- gold, silver, platinum, and palladium. They are equipped with a Class III Vault, the most secure vault produced, as well as a state-of-the-art 12,000 foot bulk storage warehouse. A multi-layered security system provides maximum protection for even small amounts of silver. All precious metals stored are fully insured.
Accounts at Diamond State
For personal use, accounts can either be of allocated or pool allocated types. Standard Accounts are of pool allocated type, where the silver you store is mixed with that of the other customers. Segregated Custody offers an allocated account where your silver is held separately. All corporate accounts are kept in separate segregated accounts.
Different commercial accounts include the Demarcation Premium Custody Account and Collateral Custody Account. The Demarcation Premium Custody Account provides any special services that require additional attention paid to the silver bullion. This can include mint year reporting and coin detailing. The Collateral Custody Account is for those who are using their silver as collateral for a loan. This basically acts as an escrow service.
Fees at Diamond State
The location of Diamond State in Delaware means that sales tax is not applicable if you have your silver shipped directly to the depository, instead of to you first. This is definitely one thing to consider when you’re investing in silver and searching for a storage depository, as it cuts down on costs.
The annual fees depend on the type of storage account you choose. If your account has less than $100,000 of precious metal stored; your fee is a percentage of the current and total market value of the silver you have stored. For Standard Custody accounts, it is 0.75% and for Segregated Custody, it is 1.50%. If you’re just starting out investing in silver, this is most likely the fee you’ll pay. The largest accounts with over $1 million will be charge 0.25% for Standard Custody and 0.50% for Segregated Custody.
Services Offered by Diamond State
Closed captioned video monitoring as well as a card-reader system prevents the access of unauthorized personnel. Access to the storage units are limited and staggered so that the employees that are entering the account information into the computer’s balance sheet are not the same ones as the ones who physically handle the precious metals. The reduction of personnel that are allowed access to your physical silver bullion gives you peace of mind in addition to the safety features offered by Diamond State.
Same-day transaction reporting is offered, so that at any given point in the day, you know the status of the silver in your account. Any shipping or handling conducted by the company is done by certified and reputed transport companies.
Diamond State is also one of the few facilities that offer storage for silver that is designated for use in an IRA portfolio. Other services offered are Individual Product Inspections, Customs Clearance Assistance, Special Packaging, and Audit Assistance.