As eager investors enter the fray of this modern-day gold rush, an important question arises: Where and how should gold buyers store the precious metal?
“There are only two ways to buy physical gold,” says James Turk, founder of GoldMoney.com. “Buy it and store it yourself, or buy it and have someone store it for you, which is what GoldMoney does. Each alternative has advantages and disadvantages, so everyone needs to weigh these and decide which alternative—or maybe both—works best for their own individual needs.”
Louis Palafoutas, a gold bullion trader with Morgan Gold who has spent three decades in the gold industry, says while some buyers choose to keep gold in a safe in their homes, others ask to have accounts set up at Brink’s or Delaware Depository , where the Comexand the Internal Revenue Service keep their gold.
“It goes from one extreme to the other,” says Palafoutas. “Some want gold delivered to an account they control, like their IRA. Then you’ve got the other extreme: People who are anti-government, who want to have gold in the event of gloom and doom, and they want it in small units because they believe they’re going to be buying groceries and gasoline with it.”
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