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When I first started out stacking metals I didn’t know anything about responsible self-custody. I would buy the a few coins, leave them in the plastic sleeve and shove them in a drawer somewhere.
I was excited about getting started and completely unprepared. And, looking back, it’s understandable. Few stackers publicly talk about how they keep their metals safe for good reason- it’s safer not to talk about it. Talking about your specific security system can make you a target. But that doesn’t help those of you who are just starting out. I know it didn’t help me.
In this comprehensive guide, we’ll cover the top 10 precious metals self-custody essentials that every smart investor, not just beginner, should consider when safeguarding their investments.
Storage and Organization
Stuffing your coins in a drawer like I did is an obvious fail. But it’s an easy trap to fall into when you don’t know what you should do. To start off, let’s organize using…
1. Coin Tubes and Boxes
Properly organizing and storing your coins is one of the most important aspects of self-custody. Coin tubes and boxes are ideal for keeping your coins separate, protected, and easily accessible. Opt for high-quality, durable materials that are designed specifically for holding precious metals to prevent any damage or tarnishing.
High-quality, inert plastics like polypropylene are a popular choice as they won’t react with the metals and cause tarnishing. Additionally, you should look for tubes and boxes that are designed specifically for the type of coins or bars you’re storing. This ensures a snug fit and prevents the coins from moving around, which could lead to scratches and other damage. Labeling your tubes and boxes with the contents and date of purchase can also help you keep your collection organized.
For the coin collectors out there, you can pick up coin books with coin inserts or clear hard plastic boxes that can protect them from tarnishing. Always seek quality protection.
2. Coin Sleeves
Coin sleeves (also called wrappers) offer an additional layer of organization and protection for your coins. They are designed to hold a specific number of coins, making it easy to track your inventory and keep your collection in order.
They come are available in various materials, including paper and plastic. While paper sleeves are more affordable, they may not provide the same level of protection as plastic sleeves. When selecting coin sleeves, ensure that they are made from inert materials that won’t damage your coins. Additionally, it’s a good idea to label your sleeves with the type of coin, denomination, and date to help you keep track of your collection.
Sleeves are also great for holding your rolls of Constitutional Silver- half-dollars, quarters, dimes, etc. They make it easy to know how much you have per roll at a glance.
Protection and Security
Once you’ve got your coins nice and organized, you’ve got to put them some place…
3. Safe
A sturdy and secure safe is crucial for protecting your precious metals investments. You’ll want to choose a safe that is fire-resistant, waterproof, and has a high-quality locking system. Consider the size and weight of your collection when selecting a safe, and try to bolt it to the floor or a install it in a wall for added security. If you live in an apartment, bolting something to the floor is probably a no go. In that case, a heavy safe, should suffice- use you’re best judgement.
When it comes to safes, they can range from simple to super high tech. Some have built-in dehumidifiers to prevent moisture from damaging anything inside, touch screens, and mobile unlocking features. Again, this is up to you want you want to consider. Many stackers opt for the tried and true standing gun case for self-custody. It’s up to you.
4. Insurance
Insurance isn’t something many beginners think of when they get started building their metal stack. In fact, many long time stackers don’t do this either, opting to keep quiet and in a safe (No judgement here. Do what works for you.). That said, insuring your precious metals investments is a smart move to protect yourself from unforeseen events like theft or natural disasters.
Contact an insurance agent who specializes in precious metals to find the best policy for your needs because some standard homeowner’s insurance policies may not cover the full value of your collection or may have specific exclusions related to precious metals. Discuss your needs with your insurance agent and consider adding a specialized rider or separate policy to ensure you have adequate coverage. Keep detailed records of your investments, including receipts, photographs, and appraisals, to facilitate claims processing in case of loss or theft.
5. Security System
You home is your castle and it’s worth defending. If you’ve spent a lifetime building wealth, you know how important it is to spend the extra cash to protect it. This is why a robust security system is an essential component of precious metals self-custody. There are lots of things to consider including using a monitored alarm system, installing motion-activated lights, and placing security cameras around your property.
Don’t skimp out on the research. There are a lot of companies out there who can set up the equipment for you or if you’re more technically inclined, there are companies that sell security products that you can set up yourself.
Protection and security can be a big topic. If you’re looking for more ideas about storing your precious metals we do a deeper dive on this topic in our article 9 Proven Ways to Store Your Precious Metals where we showcase strategies ranging from the absolute beginner to long time stackers.
Inspection and Maintenance
Once you’ve got your home castle fortified there are a few items worth picking up for long term maintenance.
6. Gloves
For the serious coin collector, gloves are a must. This is especially true if you collect numismatics or rare rounds. Handling your precious metals with bare hands can lead to tarnishing or other damage. Choosing the right gloves for handling your precious metals. Look for gloves made from soft, lint-free materials like cotton or nitrile, as these will not leave behind any residue or scratch the surfaces of your coins and bars. Avoid gloves made from latex, as they can cause reactions with some metals, leading to tarnishing.
7. Cleaning Supplies
Proper cleaning and maintenance of your precious metals investments can be important for preserving their value. Most of the time, just keeping your metals in their boxes or tubes will suffice and you don’t need to worry about quality degen. However, if you’re buying junk silver it might be worth cleaning them up a bit if they’re tarnished. Investing in high-quality cleaning supplies designed specifically for precious metals can help ensure that your coins and bars remain in pristine condition.
When cleaning your precious metals, it’s important to use cleaning supplies specifically designed for the task. Avoid abrasive materials and harsh chemicals, as these can damage your metals and decrease their value. Instead, opt for gentle cleaning solutions and soft, lint-free cloths to remove dirt, fingerprints, and other contaminants. Remember that cleaning should be done sparingly, as over-cleaning can lead to unnecessary wear and tear on your investments.
8. Metals Test Kit
A metals test kit is an essential tool for authenticating your precious metals investments. These kits typically include acid tests, electronic testers, and other tools that can help verify the purity and authenticity of your metals.
A couple notes here. When using a metals test kit, it’s essential to follow the instructions carefully to avoid damaging your precious metals. Acid tests, for example, require you to apply a small drop of acid to a scratched area of the metal to determine its authenticity. Ensure that you understand the proper procedure for each test in your kit and store the kit in a secure location away from children and pets. Regularly testing your investments helps maintain confidence in your collection’s authenticity and value.
9. Inventory System
As a beginner, this isn’t something you think of right away but at some point you’ll have a nice stack and you’ll suddenly realize you can’t count them all at a glance and a concerned feeling wash over you… “wait… how big is this stack?” Honestly, it’s a good problem to have. 😀
Keeping track of your precious metals investments is crucial for effective self-custody. Implement a reliable inventory system, whether it’s a simple spreadsheet or specialized software, to track the details of your collection, including purchase dates, costs, and current values.
Keeping your inventory system up-to-date is vital for managing your precious metals investments effectively. Regularly update your system with new acquisitions and sales, and periodically review your holdings to assess their performance. You may also want to include information on the purchase price, current value, and any taxes or fees associated with your investments. A well-organized inventory system can also be beneficial for tax purposes, insurance claims, and estate planning. Consider backing up your inventory records in a secure digital format or off-site location to prevent loss or damage.
10. Scale, Loupe, or Magnifying Glass
A precise scale, loupe, or magnifying glass is invaluable for inspecting and authenticating your precious metals investments. These tools allow you to accurately assess the weight, details, and overall condition of your coins, bars, jewelry, or sterling silver.
When using a scale to weigh your precious metals, it’s important to choose one with a high degree of accuracy and a weight capacity appropriate for your collection. Digital scales with a readability of 0.01g or better are a popular choice for their precision and ease of use.
Coin collectors of numismatics or rare coins know the important of a loupe or magnifying glass. They’re essential for examining the details and surface condition of your coins and bars. Look for a loupe with a magnification of at least 10x, as this will allow you to see the finer details and detect any potential issues like scratches, counterfeits, or signs of wear- or as a collector determine the rarity of a coin. Keeping these tools clean and well-maintained will ensure their accuracy and longevity.
Wrapping Up
As with anything in life, there’s no guarantees. Fortunately, with the right knowledge we can have that peace of mind by taking the thoughtful steps to get there. With proper self-custody measures in place, you can focus on growing and managing your collection, knowing that it is secure and well-maintained.
Oh, and if you’re looking for a place to start looking to buy some precious metals accessories, you can browse here.
