Monday, 26 August 2013

Tips for Securing You Bullion Coins

If you are investing in bullion then it is a good idea to take the time to learn about the basics of handling and storing your coins or bars. The first thing you should understand is that they are an investment and should be treated as such. One of the most important things therefore is to discuss securing your coins and protecting your investment.  The simple fact is that thieves would love to get their hands on your bullion coins. They are small, easy to transport, and can be melted down and made untraceable. Protecting your bullion should be a top priority for any investor. Of course, most people are honest and would never dream of stealing from you. When it comes to security, however, it is better to be safe than sorry.
Storing Bullion At Home
If you decide to store your bullion at home, you should consider keeping your investment secret. If you feel the need to talk about your bullion investments, you could tell people that they are stored with a  special security company, even if that's not true. No, we don't advocate lying, but the truth is, there is really no need for anyone to know about your investment except you and your closest loved ones. As the old saying goes, “two people can keep a secret if one person is dead.” That may sound a bit harsh, but when storing your gold at home, it might be best to keep this information private.
You also need to know that many insurance policies do not cover bullion coins. You read that right, your homeowners insurance may not cover bullion coins as part of your standard coverage. Not only does this make security all the more essential, you should also make sure that you talk your insurance agent to see if your investment is covered, or if you can purchase a rider to cover bullion.
Most likely, however, your homeowners insurance will not cover gold, and your insurance company will not be able to offer a rider to cover it. In this case, you can check to see if any bullion insurance is offered in your country or state. In some cases, there may be insurance policies that you can purchase to protect your coins. If you decide to purchase insurance, make sure you read all of the fine print. Check to see what your gold is covered for. It's best to have a policy that covers a wide range of situations, such as robbery, fire, natural disaster, and everything else.
Still, if you do decide to store your bullion at home, it's a good idea to invest in a high-quality safe. This safe should be large, heavy, and bolted to the ground or into a wall. After all, if burglars can simply steal your safe, they will do so. Combination locks may be preferable to electronic locks, as you won't have to worry about batteries or a power source. You should also try to place your safe in an out of the way place, such as a closet, the basement, or even your attic. If possible, you should avoid placing your safe in your home office as burglars know people often put safes there.
Make sure your safe is fire proof and heat resistant. There are many options for fire proof safes, and we recommend you purchase safes with the highest fire resistance ratings. Gold and silver wont “burn” in a fire, however, if temperatures get hot enough, your bullion can melt. While the primary value of bullion comes from the metal contained (which you may be able to recover, even if your coins melt), your investment will lose some of its value.
Storing Bullion in a Secured Vault
Another option is to store your bullion in a secured facility, if one happens to be nearby. With a storage facility, your gold will normally be placed inside of the a large and heavy vault. While setups vary from company to company, often you will be given your own safety deposit box or safe within the vault. This adds extra layers of security and ensures that only you can access your bullion.
Often, companies run storage facilities that specialize specifically in securing bullion and other precious metals or minerals. These facilities will feature state of the art systems, are often guarded by armed guards, and will usually feature insurance policy options. Sometimes these insurance policies are optional and require an extra fee. Other times all investments will be insured.
If you decide to store your bullion in a specialized security facility, make sure you take the time to research and visit the options available in your area. Read all of the fine print regarding their policies, and make sure you clarify any questions you might have. And of course, make sure you check into insurance policies and details.
Closing Words
There are many ways to secure your bullion investment. Remember, it may be a good idea to keep your investments private and tell only those who actually “need to know.” Bullion isn't something to brag about, its something to ensure your future prosperity, so make sure you are protecting it. You should consider insurance where available, and if you store bullion at home, invest in a good safe. If you decide to invest your bullion in a secured vault, make sure you review your options carefully and read all the fine print in the contract. Protecting your investment from theft and damage should be a top priority for any investor.

If you would like further information about our recommended storage company Security Deposits Vault in Parnell, feel free to give us a call or check out there website www.securitydepositsvault.co.nz


Monday, 12 August 2013

How To Take Care of Your Bullion Investments

Investing in gold and silver bullion can be a great way to earn solid returns and protect your wealth. Every investment carries risks, of course, but bullion has proven to be one of the most stable and reliable investments around. For thousands of years, humans have sought to acquire gold and silver and have been minting coins. This long history of desire makes bullion an attractive investment. Still, caring for bullion does require a bit of knowledge and skill. In the following article, we will outline some key points to help you care for your bullion and protect your wealth.

Caring for Gold Bullion
Gold is one of the easier metals to care for. In fact, this is one of the reasons gold is such a sought after bullion metal. Gold is very difficult to tarnish, does not oxidize under normal conditions, and otherwise maintains its chemical and physical properties. Gold is nearly chemically inert and will not react with most chemicals or corrosive agents. Gold can be dissolved by nitro-hydrochloric acid, though it is unlikely you will encounter this strong corrosive agent. Gold is also highly resistant to scratches and scuffs.  All of these properties make gold easy to care for and as a result it is a favorite among investors.
One thing to remember, however, is that gold is a very soft metal. It is possible that you could dent a gold coin if you drop it onto a hard surface or from a considerable distance. For these reasons, it is often best to keep your gold coins in a sealed case and handle them sparingly. You should seal gold coins separately in their own sealed cases and keep them in storage as much as possible. Still, most gold bullion is valued for its metal content, so if you do damage a gold coin, not all is lost.
Caring for Silver Bullion
Silver offers another great investment opportunity. Besides gold, silver is the most common choice for bullion coins. Unfortunately, however, silver is not as  resistant to damage or wear and tear as gold. While silver is a resilient metal, it can oxidize under normal conditions. At the same time, silver is easier to tarnish, scratch, and scuff. Make no mistake, silver is not a fragile metal, but it will require a bit more care than gold.
Silver can easily be tarnished by Hydrogen Sulfide, which is found in numerous things, including fossil fuels, food, paint, and latex. So don't use latex gloves when handling silver and make sure your hands are clean! It is very easy for hydrogen sulfide to accumulate on your skin and then rub off onto your coins, if you should choose to handle them. For this reason, you should handle your silver bullion coins sparingly.
Like gold coins, you should keep your silver coins stored away and handle them sparingly. Silver coins should be either encased separately or stacked into a tube. Do not store them in a ziplock bag or in any other way that will allow them to rub up against one another (and thus cause friction and damage). In order to reduce tarnishing, you can also add some charcoal bought from a pet store and silica gel to reduce moisture and other conditions that could cause silver to tarnish.
Will Scratches and Tarnish Diminish the value of Bullion Coins?
It is important to understand that scratches and tarnishes generally do not affect the value of bullion coins. Bullion coins are valued for their weight and purity, not their shine or condition. Of course, a large gauge in a bullion coin could reduce its weight, but usually small scratches or a thin layer of tarnish will have little impact on the value of a bullion coin.
That being said, scratches and tarnishing can have a slight impact on the value of bullion coins. The simple fact is that people are drawn to things that are in “mint” condition, including bullion coins. This means that sometimes people, especially in the secondary market, may be willing to pay a bit more for a mint condition coin. Mint condition coins may also be more liquid as there will be higher demand for them. Dealers, however, usually pay more attention to weight, purity, and where the coin was minted.
The value of a numismatic coin, on the other hand, can be greatly impacted by scratches and tarnishing. Numismatic coins refer to coins that are valued for reasons beyond their weight and purity. Ancient coins from past civilizations, for example, are no longer valued for their metal content but instead as ancient artifacts. The value of these coins can be greatly impacted by tarnishing and scratches.
Wrapping Up: Keep Your Bullion Protected
While bullion coins are relatively sturdy, that doesn't mean that you should neglect them. Remember, bullion is an investment, and like any investment you should care for your coins to ensure that they remain in the best shape possible. Careful handling and storage can ensure that your investments retain their value. Don't treat your coins like toys and only handle them when necessary. By and large, you should keep your coins safely stored away, and only take them out for cleaning, to be sold, or for other important purposes.