Choosing a Precious Metals Vault -

What to Look for in a Precious Metals Vault

The Real Risk Isn’t Just Theft—It’s Structure, Contracts, and Counterparties

This guide outlines key considerations when selecting a precious metals storage facility or program to safeguard, custody, or manage your physical holdings. Whether you’re storing for security, estate planning, or long-term asset protection, understanding the hidden risks is critical to managing your exposure.

Do You Have a Direct Relationship with the Vault?

It sounds basic, but it’s often overlooked:
Are you storing with the vault itself—or with a middleman?

Many gold dealers form subsidiaries or affiliate companies that “represent” storage services. These subsidiaries may hold a master account at a real depository, but you’re not the account holder. You’re just a line item under their umbrella. That means:

You don’t have direct contractual rights with the vault
The depository only takes instructions from the affiliate
Your metal may be tied up if the affiliate disappears or fails

Bottom line: If you’re not contracting directly with the vault, you’re adding unnecessary counterparty risk.

Don’t Just Trust the Marketing—Ask Questions

Most vaults won’t tell you everything up front—and to be fair, they have security concerns. But transparency doesn’t have to mean vulnerability.

A legitimate vault should be able to:

Disclose ownership structure and affiliates
Show how each entity contributes to (or depends on) the operation
Demonstrate that it can function independently of its parent or affiliates

Tip: When you sign the storage agreement, you’re legally binding yourself to one company, not its web of affiliates. If that company isn’t well-capitalized or can’t stand on its own, your metals are exposed.

Is the Facility Built to Last—Or a Going Concern?

In tough markets—like now—precious metals trading revenue has collapsed. Many dealers that once subsidized their storage offerings through fat markups now can’t afford to do so. The result?

Storage fees that don’t cover operational costs
Underfunded vaults
High-risk business models held together by affiliate cross-subsidies

Ask yourself:

Can this facility survive a year without dealer subsidies?
Who owns the underlying assets, infrastructure, and insurance policies?
Is this just another sales funnel wrapped in a security promise?

Ask the Hard Financial Questions

Don’t be shy. Ask:

Can you see the company’s balance sheet or proof of capitalization?
How is the storage operation funded? What are its fixed costs?
What happens if one affiliate collapses—does the vault still stand?

In the past, dealers used ultra-low storage fees to win clients. Today, those fees may be mathematically impossible to sustain. And if the vault can’t generate operating capital? Corners will get cut. Security. Insurance. Staffing.

And eventually—your access.

Segregated vs. Allocated Storage—And the Illusion of Control

Allocated storage often means your metals are pooled with others—sometimes even co-owned through fractional bars. Segregated storage, on the other hand, requires:

Your metals to be stored physically apart
Unique bar numbers or packaging
Exclusive access tied to your account

But beware: If you’re part of an affiliate program, even segregated storage may not be truly separate. If the vault only recognizes the master account holder, you’re still relying on that middleman.

Ask:

Who authorizes metal movement?
Can I communicate directly with the vault?

What happens if I want delivery, but the affiliate is unresponsive?

Don’t Fall for Advertising Puffery

Many vaults are lightly regulated or not regulated at all. That opens the door for exaggerated claims like:

“We cover all risks!”
“We offer full all-risk insurance!”

Then you get the contract—and it’s filled with exclusions, disclaimers, and hold-harmless clauses.

Always remember:

Advertising ≠ legal disclosure
The storage agreement is what defines your rights—not the sales pitch

Real insurance has policies, deductibles, and named parties

Discriminatory Pricing: IRA Accounts vs. Regular Clients

Many depositories charge radically different fees for different types of accounts. Example:

IRA gold storage: 0.12% annually
Regular storage account: 0.70% annually

Same metal. Same vault. Same security.

So what gives?

Either regular accounts are being gouged
Or IRA accounts are being subsidized by other clients—or worse, by thin air

A vault handling $100 million in metal with a 0.12% fee structure generates just $120,000/year. That’s barely enough to cover a few salaries—let alone vault leases, insurance, and armored security protocols.

If you see ultra-low rates, ask:

How is this being funded?
Are other clients subsidizing the difference?

Is the operation sustainable without dealer transaction revenue?

Read the Fine Print—Especially the Part About Changes

Some vaults include clauses that allow them to change your contract terms just by updating their website. No notice, no alert. If you’re not checking regularly, you could be operating under new terms without realizing it.

Also watch for:

Transaction fees deducted directly from your stored metals
Hidden costs tied to delivery, wire fees, or account management

In Summary: If You Don’t Ask, You’re the Product

This article only scratches the surface of the structural and contractual risks baked into many storage programs. But here’s the takeaway:

Ask the questions now—so you’re not scrambling for answers later.

At Idaho Armored Vaults, we’ve spent the last 10 years building a facility that eliminates these risks by design. From our armored security to our fully segregated storage and transparent structure, everything we do is built to protect you—not the sales channel.

When you choose a vault, choose one that puts your interests first. Because in the end, that’s the only thing that matters.