Three Letters Re: The Potential Perils of Bank Safe Deposit Boxes

Hi James –
Nice letter from D.C. today, but for cryin’ out load Jim, please advise him to get his precious metals out of a bank’s safety deposit box. He seems to be able to afford a decent wall safe and the few bucks it might cost to install and camouflage it. When banks fail, they close the safety deposit boxes too – at least for a while. Not a great strategy to be cut off from your contingency funding right when you need it most. Too, get sideways with the IRS, and you will go to bank to see your safety deposit box sealed with a red and tagged nylon strip. Happened to a friend of mine – these guys play hardball!
Keep up the good work, and continued prayer that you wife is healing well. – Duck n’ Cover


Mr. Rawles:
As a metals investor myself, I am always looking for the opportunity to sell high and buy low and keep a healthy reserve for the future.As its been stated,Silver is a good buy and so is Gold at the current prices. Unfortunately, when you deal with an ETF, you are still dealing with paper. In case of emergencies, getting your gold might take months and could never come at all ! The last rally in March proved this to be true because there were huge delivery delays-even up to 8 weeks and more! Thinking a safe deposit box at a bank is safe? I wouldn’t! Your a lot safer having a Safe at your home, In your possession. Money, Gold &Silver will not do you much good when you don’t have it in your possession and you need it now. With the economy and the many bank closures, I in fact have very little money in my accounts–just enough to pay bills and have any form of currency (metals) in my possession.

There can be nothing worse when your bank is closed, the ATM machine has you locked out and you cannot get your metals out of your safe deposit box. Now what do you do? – Richard In California

Hi Jim,
At the end of DC’s letter about physical gold, he wrote “My local bank offers a nice sized safety deposit box free of charge, that is easily capable of storing several million dollars of gold. I’m comfortable leaving the asset there.” I would not consider safety deposit boxes safe at all — they’re way too easy for the authorities to confiscate for any or no reason. You wrote about this [happening in England] back on June 6th. The news story listed there has expired — here’s a different link to the same story: Thanks, – James