Gold bullion is the best way to invest in precious metals because unlike mining stocks or exchange-traded funds - that may not actually hold the metal they claim to hold - physical bullion is real and tangible. But physical gold comes with a problem: Storage. Once you have decided to invest in real money, where should you keep it? Generally, it is not a good idea to keep precious metals under your bed or in your attic because that could make you a target for theft or burglary. To protect against such risks, investors should always store their gold in a precious metals depository.
Precious metals depositories are places where you can securely store your gold. Not only do they have enough room to hold your entire collection - but they also have careful climate and humidity controls to ensure your metal remains in pristine condition. Precious metals depositories also offer a high level of security. Your holdings are closely monitored through both human and video surveillance.
The location of the precious metals depository is even more important because gold should be stored in the most secure location possible. Precious metals depositories are usually found in three locations around the globe: Hong Kong, Singapore, and Switzerland. Switzerland is the most secure place to store precious metals because of the country's long history of neutrality, democratic political system, and overall safety and stability compared to the other options.
Hong Kong and Singapore are popular with British investors because of their prominent role in the historical British Empire. However, since the late 90s, when the U.K returned Hong Kong to China, the city has become increasingly dominated by the Chinese Communist Party. And storing precious metals there is risky because authoritarian regimes increase the likelihood of gold confiscation. On top of this, the entire South East Asia region is a hotbed of political risk due to the controversy over the South China Sea and U.S military presence in the region.
Switzerland, on the other hand, is the safest and most secure location to store gold. The alpine nation has a long history of democracy, and it is one of the most decentralized and free political systems in the world. The Swiss have a long history of neutrality. When WW1 and WW2 were ravaging Europe, investors from all over the world moved their assets to Switzerland to keep them safe from government confiscation.
On top of democracy and political stability, the Swiss economy has a special relationship with gold. Switzerland refines around 70% of all the world’s gold, and precious metals are a vital industry the Swiss are incentivized to protect. This makes them less likely to levy punitive taxes on gold or even confiscate it like the United States did in 1934.
Physical gold is the best way to invest in precious metals, but storage can be difficult. Switzerland is the safest and most secure way to store precious metals because of the country’s democratic political system, long history of neutrality, and economic relationship with precious metals. Physical gold should always be stored in a precious metals depository located in Switzerland. SuisseGold.com offers precious metals storage in Switzerland.