Storing bullion in a bank safe deposit box is slowly being outlawed.
The idea of putting bullion in a bank is at best a risky proposition, and at worse, a recipe for disaster and financial losses.
It was only a few years back in 2015 when the world’s largest financial system threatening bank (according to the BIS’ Financial Stability Board) announced it was banning customers from keeping physical cash and or coins (i.e., possibly too gold silver bullion coins as well).
Last summer 2018, with this Bank of America safe deposit box scandal, we were reminded that anyone who thinks it is safe to keep their bullion in a bank safe deposit box is likely ignorant and unknowing of the myriad risks involved with doing so.
First and foremost, there is a small chance that someone working at the bank could steal your belongings. Oh, and by the way, the Federal Deposit Insurance Company (FDIC) does not provide insurance on anything in bank safe deposit boxes. Then if we ever have some sort of bank crisis, you might get frozen out from your precious metals. Bullion in bank safe deposit boxes can also be frozen by court order and or the authorities.
Even bank deposit loans we lend to the banks, for every $100 deposited in US banks, the FDIC has pennies of insurance on each $1 US dollar held within the banking system.
Why would you trust this system with your bullion? Why not have some full sovereignty over some savings?
KeyBank recently announced to its customer, “you can no longer store gold bullion or non-collectible domestic or foreign currency in your box. Key is not liable for any loss, damage, or theft or other casualty of gold bullion or non-collectible domestic or foreign currency for any reason.”
So in other words, don’t bring your bullion into our banks, and only lent cash that we get to hold and fractional reserve lend out gets insurance from the underfunded FDIC.
We wonder if HSBC got their bank safe deposit responsibility dismissal in time, or if they will actually have to pony up for some of their supposed bank safe deposit boxes going missing.
HSBC Safe Deposit Box Disappearance
Not smart keeping your most precious items with people who have proven themselves incompetent and unwilling to take responsibility to safeguard people’s valuables.
When buying bullion for the long term, consider beginning by owning some directly and in hand (here are some ideas to help you consider how you could safely store bullion at home).
Once you get to a level of bullion too large for one location such as under your roof, consider professional bullion storage logistics firm accounts with Loomis, etc.
Hopefully, by now neither you nor we will have to relearn the hard way that both those bail-in readied time deposits and 'safe' deposit boxes at our local banks have never really been that safe.
If this is somehow news to you, take appropriate actions and thanks for visiting us here at SD Bullion.