Diamond State Depository Says Evaluate Options for Insurance, Security and Taxes When Storing Precious Metals

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by: Diamond State Depository
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Date: Wed, 26 Jan 2011 Time: 10:57 PM
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Think outside the box. That's what Diamond State Depository is reminding precious metals investors when it comes to storing their investments. As one of a limited number of depositories in the world, Delaware-based Diamond State is America's newest, state-of-the-art facility for storing, transferring and shipping precious metals bullion and coins.

The company is offering current and potential individuals and commercial investors who have accumulated gold, silver, platinum and other precious metals the following five tips for evaluating when a depository may be a better storage solution for your investment:

• Consider the size, bulk and dollar value of your precious metal investment. This is especially relevant to silver, which, in larger quantities, is particularly bulky and heavy, and unsuitable for safe deposit box storage due to its size. Also, regardless of the physical size of your investment, you may benefit significantly from some of the services offered by depositories, especially those relevant to insurance, security, and tax savings.

• Be sure your investment is insured. Many people don't realize that, while safety deposit boxes are a great value for a number of vital items, banks don't insure the contents of the boxes they rent to customers. This means safety deposit box holders must acquire separate, specialty insurance policies to protect the precious metals they hold if they want to insure them when stored this way. In contrast, depositories typically provide insurance for the items stored with them. As one example, Diamond State's storage rate includes the provision of "all-risk" insurance through the world's largest specialty insurance provider.

• Consider the impact on your personal time and safety. Think about the time and risk involved with personal travel to and from your place of storage with your precious metals investments. When using a safety deposit box for storage, investors must travel to and from this location with their precious metals. This presents risk of loss, robbery, and consumes a significant amount of time that can impact your ability to sell in a timely fashion, your personal time and safety, and more.

• Timing delays can be costly when you decide to sell precious metals. Timing delays with selling precious metals can be avoided if you are storing your items in a depository. As referenced previously, storing precious metals via safety deposit boxes presents a timing delay that may impact their selling price, as investors must travel to their banks, retrieve their coins and metals, and take them or ship them to dealers, in order to sell at the time they choose. This may cost investors money, particularly in a fast-moving market. In contrast, when metals are stored in a personal account with a depository, the owners can sell them to a dealer (and lock in a price), over the telephone when they wish, as they do with stocks sold through their stock broker. As one example, Diamond State will transfer the metals to the dealer, per the investor's instructions when they sell; and, upon receipt, the dealer will pay the seller the price they agreed to on the phone.

• Look for a tax advantage for your precious metals investment. Investors and commercial entities can save hundreds and even thousands of dollars each year if they take advantage of the widely known tax breaks Delaware offers its business constituents and local citizens. Storing precious metals in a Delaware-based facility allows investors to avoid paying state sales tax, personal property tax, inventory tax, commercial net worth tax, and tax imposed on the payment of depository storage fees (as is required in New York) on their investments.

In addition retail coin and bullion purchases made anywhere in the United States can be made sales tax free, when those assets are shipped by the seller for credit to the buyer's custody account at Delaware-based Diamond State.

For more information on Diamond State Depository call 888-322-6150 or visit http://www.diamondstatedepository.com/.

About the Author

Diamond State Depository is located directly in the heart of America's primary business corridor, just on the outskirts of Wilmington, Del., Diamond State is the world's newest and most modern precious metals and certified coin depository. The facility is equipped with the systems, staff, security and insurance to meet the demanding storage and shipping requirements of both institutional entities and individual investors actively participating in today's highly dynamic precious metals bullion and certified coin markets.
For more information on Diamond State Depository call 888-322-6150 or visit http://www.diamondstatedepository.com/.