How to Store a Six-Figure Coin Collection Without Paying Bank Box Fees
And you have created an attractive collection of coins worth six figures or more. Congratulations! However, this question arises now: where do you keep it without losing money on old-fashioned bank safety deposit boxes?
Most serious collectors, as you are yourself, must have shuddered at the annual fee which banks are charging for safety deposit boxes, and even more at the fact that you will need several boxes to put together a considerable collection. The good news? One can find a number of intelligent, safe options that can help you save your money and keep your precious metals and rare coins safe.
The Issue of Bank Safety Deposit Boxes
Admittedly, bank safety deposit boxes are not what they used to be. Most banks are discontinuing them altogether, rendering them more difficult to locate. The ones which are still available are usually very expensive, with annual fees varying between $100 to $300 per box depending on size and location. A six-figure collection may require several boxes, which will be costly to maintain.
Besides, bank boxes are accompanied by annoying restrictions. They are only available within banking hours and have no insurance cover on the contents (despite what most people would assume). Furthermore, some banks have been known to drill holes in boxes when settling an estate, or in cases of legal disputes.
The Home Storage Solutions That Do Work
Just listen to me before you rule out the notion of keeping your collection in your living room. The current technology of home security has evolved significantly, and when properly installed, your house is much safer than you believe.
High-Security Safes: Your First Line of Defense
Home storage is compromised by not investing in a good safe. It is not about those $200 fire safes that the big-box store offers—they are just a recommendation to burglars. A six-figure collection requires a TL-rated (tool-resistant) or TRTL (torch and tool-resistant) safe, at least 750 pounds or bolted into concrete.
Safes should have the following features:
- UL-certified burglary resistance.
- At least 2 hours of fire protection at 1700°F.
- Relockering devices that activate in case one tries to drill or pry.
- Redundant digital and mechanical locks.
Sure, you may spend between $3,000 and $10,000 on a proper safe, but here is the calculation: this cost is equivalent to 10-30 years of bank box fees, and with the safe, you will own it outright.
Strategic Placement Counts
The location of your safe is as important as your safe itself. The ideal is the basement or a first-floor closet fastened on the foundation. Do not use obvious places such as the master bedroom or the home office. Others even create false walls, cover the safes with built-in shelves, or place them inside climate-controlled wine cellars.
Private Vault Facilities: The Middle Ground
In case home storage is too risky, and bank boxes are too costly, the best solution is a compromise: private vault companies. These establishments are experts in safe deposits and, in most cases, offer greater safety as compared to banks at reasonable costs.
In Australia, private vault Melbourne facilities provide collectors with state-of-the-art security features, 24/7 access (in most cases), and insurance provided specifically designed to cover precious metals and collectibles. Private vault companies know what you are putting up in storage, unlike banks, and serve collectors and investors per se.
Private vaults are usually biometrically-controlled, armed, secured by redundant alarm systems, and fully insured. Many also have climate-controlled conditions, which are important in the preservation of the condition of rare coins which will otherwise be damaged in the event of humidity or extreme temperatures.
The Distributed Storage Strategy
This is one trick employed by a good number of astute collectors: never keep all your money in one place. Distribute your inventory through several safe sites. Keep your most frequently visited objects at home in a good safe, store your most valuable rarities in a separate private vault, and use a smaller bank box for insurance documents and provenances.
This is a risk-minimizing strategy. If one place is compromised, you will not lose it all. Besides, it can even save money because you do not need to pay a lot of money on huge vault space in one place.
Developing Business Contacts with Authorized Retailers
The other form of storage solution that is usually ignored is establishing connections with credible dealers. There are gold dealers in Melbourne and coin dealers who will store collections for their regular clients safely (and even free or at low charges), particularly where you are a buyer and seller of lots of coins.
These dealers possess purpose-made vault facilities devoted to precious metals, know about the proper storage conditions, and they might even provide consignment services, whereby your coins would be available when you need to sell them in case any opportunity comes. All one has to do is ensure that any dealer he/she deals with is fully licensed, insured, and has a reputed name in the numismatic community.
Insurance: The Unskippable Safety Net
Wherever you keep your collection, it is most important that you insure it. Reimbursement of precious metals is usually limited under standard homeowner insurance cover with a maximum of $1,000 to $2,000, which would be nowhere sufficient to cover a six-figure collection.
You will require a distinct policy of collectibles or valuable items. What companies dealing with the insurance of collectibles do realize are the subtleties inherent in the numismatic values and will insure them according to documented appraisals. It is an extra expense, but it is a lot less than the loss that could have been suffered on an uninsured collection.
Paper Trail: The Paper Trail of Your Collection
Keep scrupulous records of what you had collected separate from the coins themselves. Photographs of high-resolution, professional appraisals, purchase invoices, and provenance data are to be stored online in the cloud and in offline storage in a different secure place. In case something occurs to your collection, these records would be essential in insurance claims and possible recovery.
The Bottom Line
It is quite possible to save a lot of money on excessive bank charges and store a six-figure collection of coins with the right strategy. Whether investing in a good quality home safe, using the services of personal vaults, or becoming acquainted with dealers you can rely on, or, the most valuable of all, combining all the above-mentioned strategies, you can safely store your collection without spending a lot of money.
The trick lies in realizing that security does not mean going with the most costly one but the optimal mix of physical security, planning, and adequate insurance. Years of love and dedication are reflected in your collection. It should be stored somewhere as thoughtful and well-planned as the collection itself.
