Insuring Your Bullion

We know many of our customers choose to store their gold and silver bullion in third-party deposits or vault facilities; these are often great storage solutions as they often include insurance coverage options. However, if a safe deposit box is not FDIC insured, they will not automatically provide protection. This is an important detail to look out for if you store your bullion at your local bank. If you choose this option, be sure to review the company's insurance policy—don't assume your investment is insured, just because it's securely stored.

For those who prefer the tangibility and access of storing your bullion at home, we strongly suggest protecting your investment in the instance of theft or loss by purchasing an insurance policy. Unfortunately, most standard homeowners’ insurance policies will not cover large sum assets, limiting coverage for gold and silver to $200 (which wouldn't even cover one 1 oz. gold American Eagle coin). While we can't say which insurance policy would be right for you, having a policy in place is a smart decision for any precious metals investor or collector.

We encourage you to check with your current homeowner’s insurance company to see what policies they have available. Many homeowners’ insurance companies provide options to purchase extra coverage, however, they may still fall short. According to the Insurance Information Institute, you may be able to bump up the per-piece coverage limit to $2,000 and the overall limit in the precious metals category to $5,000.

Another option, recommended by financial advisors, is purchasing a floater policy. This type of policy will cover any kind of loss, even those that a homeowner’s policy doesn't, and can give you broader coverage and a higher coverage limit.

As you prepare to insure your bullion, you will need to start by having it appraised. In addition to providing proof of ownership, this will provide clear documentation of your bullion's value for your insurance policy. This is especially important if you own rare coins or other forms of bullion whose value can be based on more than their precious metal content alone. This appraisal, along with photographs of your bullion cab be provided to your insurance provider as documented proof of its current condition. If you need to file a claim because your bullion has been damaged or stolen, this documentation could be critical. Finally, properly secure your bullion and store it correctly. If found that your bullion was improperly secured, your insurance provider could deny your claim in the future.