Bank Safe Deposit Boxes Stolen

[goodasgold]

Here is proof that anyone trying to economize by not insuring their gold in a safe deposit box should think again:


http://www.telegraph.co.uk/news/worldne ... -room.html

[BearBones]

I suspect that this kind of thing is exceedingly rare. In a poll I did here last year, very few insured. Add together cost and loss of anonymity and I'd argue that this is reasonable, at least unless such looting becomes more widespread.

[Reub]

What is that insurance company again that insures gold in safe deposit boxes?

[smurff]

Reub, did you get your safe deposit contents from your bank after Sandy?  I remember that we were wondering whether they brought individual lock boxes or whether they removed the entire vault room.

[Reub]

I'll let you know in about a week.

[MediumTex]

I would suggest getting a safe deposit box in a small bank or credit union branch in a quiet suburban neighborhood. 

No thief in his right mind would put much energy into cracking a vault in a bank like that.

Think about it.

[rickb]

What is that insurance company again that insures gold in safe deposit boxes?

Hugh Wood - see this thread http://gyroscopicinvesting.com/forum/ht ... ic.php?t=0

[MachineGhost]

Here is proof that anyone trying to economize by not insuring their gold in a safe deposit box should think again:

I'd be more worried about the new trend of house thieves using metal detectors...

[goodasgold]

I suspect that this kind of thing is exceedingly rare. In a poll I did here last year, very few insured. Add together cost and loss of anonymity and I'd argue that this is reasonable, at least unless such looting becomes more widespread.

But does this no-insurance approach pass the "sleep test?" In my opinion, no. I prefer to pay an insurance premium knowing that the loss of gold would be compensated.

But this raises another issue. It is my understanding that insurance policies often do not cover losses due to acts of war. My safe deposit box is in Manhattan. I have to wonder if an act of war initiated by terrorists, such as a "dirty bomb" making Manhattan radioactive for ten years, would void my gold insurance. Gotta read the fine print of insurance policies to answer this question.

[MediumTex]

I suspect that this kind of thing is exceedingly rare. In a poll I did here last year, very few insured. Add together cost and loss of anonymity and I'd argue that this is reasonable, at least unless such looting becomes more widespread.

But does this no-insurance approach pass the "sleep test?" In my opinion, no. I prefer to pay an insurance premium knowing that the loss of gold would be compensated.

But this raises another issue. It is my understanding that insurance policies often do not cover losses due to acts of war. My safe deposit box is in Manhattan. I have to wonder if an act of war initiated by terrorists, such as a "dirty bomb" making Manhattan radioactive for ten years, would void my gold insurance. Gotta read the fine print of insurance policies to answer this question.

I would do some serious thinking about the nature of the risk you are trying to protect yourself against.

Thieves simply wouldn't be interested in the contents of safe deposit boxes in areas where people tend not to have a lot of compact wealth (which is most parts of the U.S. outside of certain big cities). 

I think you are right about New York City facing a lot of risks that aren't present in other parts of the country, so why not drive an hour or so to a bank outside of New York City and get a safe deposit box there?

Another approach to consider is getting several safe deposit boxes at different banks.  If you figure a safe deposit box will cost between $0 and maybe $30 per year, having several wouldn't be all that expensive.

From my perspective there are a LOT of things I would worry about before I would worry about someone stealing the contents of a safe deposit box.

I think that even people who work in banks tend not to think about the safe deposit boxes much simply because most people don't have a lot of valuable stuff that is worth putting in a vault in the first place. 

Here is an exercise: You are a thief with the ability to break into bank vaults and then break into individual safe deposit boxes.  Since you know you have to be selective about your targets because each heist will improve the chances of you being caught, what banks would you hit?  Would it be a Bank of America branch on the corner of some quiet suburb with 100 different surveillance cameras at the area stoplights, fast food places and convenience stores recording every move of anyone who gets close to the bank branch (in addition to the cameras at the bank itself)?  What would you expect to net from such a heist?  Probably some birth certificates, marriage licenses, savings bonds, old photographs, a few silver dollars, some old heirloom jewelry (with small stones), and a stamp collection.

[Reub]

Reub, did you get your safe deposit contents from your bank after Sandy?  I remember that we were wondering whether they brought individual lock boxes or whether they removed the entire vault room.

Well, I finally went to the collection site to pick up my safe deposit contents. It went very smoothly. The person who helped me wasn't sure how the boxes were moved after Superstorm Sandy but there were separate groups of boxes situated around the large room, about 40 boxes in a group. It looks to me like the boxes were removed in these groups from the bank after the flooding subsided and I would guess that the entire vault was not removed as one big unit (but I could be wrong). BTW, the bottom 7 or eight rows of boxes were all rusted out and corroded by the seawater. I'm glad that I chose a box that was about 10 feet high!

[Tortoise]

Well, I finally went to the collection site to pick up my safe deposit contents. It went very smoothly.

That's good news! It helps me feel even more confident about my safe deposit box now.

BTW, the bottom 7 or eight rows of boxes were all rusted out and corroded by the seawater. I'm glad that I chose a box that was about 10 feet high!

True, but even if your box had been one of the lower ones that got rusted out and corroded by the seawater, at least your gold coins would still be shiny and good as new since gold doesn't corrode. Any papers would be destroyed, but your gold would still be there, just as it is when they occasionally find centuries-old treasure chests with gold in shipwrecks at the bottom of the ocean.

I would suggest getting a safe deposit box in a small bank or credit union branch in a quiet suburban neighborhood. 

No thief in his right mind would put much energy into cracking a vault in a bank like that.

+1

I suspect that this kind of thing is exceedingly rare. In a poll I did here last year, very few insured. Add together cost and loss of anonymity and I'd argue that this is reasonable, at least unless such looting becomes more widespread.

+1

If safe deposit box insurance helps some people sleep better at night, I say go for it; peace of mind is a big part of a successful investment strategy. But personally, I would feel a little uneasy submitting those forms to an insurance company, telling them my name, my safe deposit box location, and the amount of gold I'm storing in it.

The very fact of giving other people (even supposedly trustworthy ones) access to such a paper trail regarding the existence and size of my gold stash would make it harder, not easier, for me to sleep at night.

[smurff]

Reub, did you get your safe deposit contents from your bank after Sandy?  I remember that we were wondering whether they brought individual lock boxes or whether they removed the entire vault room.

Well, I finally went to the collection site to pick up my safe deposit contents. It went very smoothly. The person who helped me wasn't sure how the boxes were moved after Superstorm Sandy but there were separate groups of boxes situated around the large room, about 40 boxes in a group. It looks to me like the boxes were removed in these groups from the bank after the flooding subsided and I would guess that the entire vault was not removed as one big unit (but I could be wrong). BTW, the bottom 7 or eight rows of boxes were all rusted out and corroded by the seawater. I'm glad that I chose a box that was about 10 feet high!

Thanks for letting us know.  Since this sort of thing is rare, it's good to hear from someone who has been through it.  And I'm glad it went forward without major problems.  My box is about 5 feet off the floor, in a vault of a single story suburban branch situated on top of a gradient, but I'll be sure my second box will be higher from the floor.

[craigr]

I would be far more concerned about a fire or natural disaster taking out a bank than people tunneling into it. So if you do get insurance, make sure it covers acts of God.