The Fine Print Around Precious Metal Depositories -

Not All Vaults Are Equal: What to Know Before You Store Your Metals

When it comes to storing your wealth, the choice of vault matters—a lot. Not every “professional” storage facility is what it claims to be. If you’re trusting a vault with your gold, silver, or other precious metals, here’s what you need to dig into before signing anything.

1. Read the Storage Agreement—Carefully

Yes, all of it. Storage contracts are often drafted by lawyers working for the custodian, not you. That means:

One-sided language
Waivers of liability
Hold-harmless clauses
Limits to your legal recourse

If you don’t read the fine print, you could be signing away your ability to hold anyone accountable when things go sideways.

2. Know the Difference Between a Bond and Insurance

Just because a facility says it’s “bonded” doesn’t mean your metals are covered.

A bond is a limited, targeted guarantee—often focused on employee theft or fraud
Insurance, on the other hand, protects against a wider range of risks like theft, fire, natural disasters, or operational failure

Ask direct questions. Get documentation. And don’t assume coverage where there may be none.

3. Watch for Conflicts of Interest

Some storage facilities are directly owned or affiliated with precious metals dealers. That’s a red flag.

Why? Because if that dealer has a shortage of inventory—or worse, is overleveraged—they may “borrow” metal from customer storage to fulfill orders or cover losses. This practice goes back to the goldsmiths of the Middle Ages. It’s not new, and it’s not rare.

Your metals should be segregated, fully allocated, and never accessible to third-party dealers.

4. Understand Insurance Limits and Deductibles

Many vault operators quietly under-insure their total holdings, betting that a catastrophic loss is unlikely. But ask yourself:

What happens if there’s a fire, flood, or geopolitical event?
Will your specific assets be fully covered?
What are the deductible thresholds?

If a vault takes a major hit—or even several smaller ones—a high deductible could stall payouts and expose you to unnecessary risk.

5. Beware of Bank-Affiliated Vaults

If your vault is owned by or embedded in a bank, your metal might be internally insured against the bank’s own balance sheet.

Banks operate on fractional reserve systems and highly leveraged books. In a crisis, your assets may be “insured”—but only on paper. Counterparty risk doesn’t go away just because a building has marble floors and a bank logo.

6. Talk to the Vault. Ask the Hard Questions.

This isn’t just about logistics—it’s about philosophy. Ask your vault operator:

What happens if civil unrest or natural disaster shuts down local access?
Do they have continuity plans?
Have they thought through political scenarios that could restrict access to your metals?

If they haven’t—you should keep looking. You’re not storing jewelry here. You’re storing sovereignty. Treat it that way.

Final Thought: Storage Isn’t an Afterthought. It’s the Strategy.

One of the most critical decisions in owning precious metals is where—and how—you store them. A shiny website doesn’t equal a secure vault. Legalese doesn’t equal protection. And convenience is no substitute for due diligence.

Make sure your vault is as bulletproof as the metals you put inside it.