Safe Deposit Boxes Aren’t Safe

Discussion of the Gold portion of the Permanent Portfolio

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Tortoise
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Re: Safe Deposit Boxes Aren’t Safe

Post by Tortoise » Mon Sep 23, 2019 1:37 pm

Sorry if this question has already been discussed and I missed it: Even if certain items like gold bullion were to be prohibited from safe deposit boxes at certain banks, how would that be enforced? To my knowledge, banks still give their customers privacy when they access the contents of their boxes.
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Re: Safe Deposit Boxes Aren’t Safe

Post by stuper1 » Mon Sep 23, 2019 1:44 pm

Tortoise wrote:
Mon Sep 23, 2019 1:37 pm
Sorry if this question has already been discussed and I missed it: Even if certain items like gold bullion were to be prohibited from safe deposit boxes at certain banks, how would that be enforced? To my knowledge, banks still give their customers privacy when they access the contents of their boxes.
No bank employee has ever observed the items in my box. I've been in there a lot lately to get various documents out.

Maybe the banks issue these decrees just to discourage potential burglars. They are trying to make the bad guys think that the only things in the boxes are old photos and family papers.
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Re: Safe Deposit Boxes Aren’t Safe

Post by dualstow » Mon Sep 23, 2019 2:01 pm

The banks don’t know what’s in the boxes. Mine’s a bit heavy to be holding mere documents, but I have shown up with hard drives, and it could potentially be full of those.

Maybe the banks are covering their asses, protecting themselves from anyone who might claim their gold was stolen. i don’t know. There’s already a waiver, though.
RIP Paul Volcker
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Re: Safe Deposit Boxes Aren’t Safe

Post by Tortoise » Mon Sep 23, 2019 2:07 pm

Okay, that's what I thought. Seems completely unenforceable unless the bank breaks into your box, which they wouldn't do without a really specific reason. It's not like they'd be systematically breaking into all of the customers' boxes, or randomly breaking into certain boxes just to keep the customers on their toes.
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Re: Safe Deposit Boxes Aren’t Safe

Post by stuper1 » Mon Sep 23, 2019 3:25 pm

I'm glad you asked the question, Tortoise, because I've often wondered about that, and I'm still hoping that others may chime especially if they know something different.

Another thing I've always wondered about is government confiscation. If I have a bunch of physical gold at home or in a safe deposit box, and if the government decides to do gold confiscation, which I believe I read has happened before many decades ago, then how does that work? What is the enforcement mechanism? Is it just that if you surrender your gold now, you get market value for it, but if you don't and they find out somehow, then you lose it with no reimbursement? If you knew ahead of time that they would change their minds in 10 years, maybe you wouldn't turn in your gold. But you wouldn't really know that. It could be 50 years, or forever, I guess.
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Re: Safe Deposit Boxes Aren’t Safe

Post by Kbg » Mon Sep 23, 2019 3:39 pm

https://en.m.wikipedia.org/wiki/Executive_Order_6102

Here ya go and this is exactly why I think paper gold is just fine for a PP. if you are seriously paranoid about this stuff, you need ALOT of gold and a permanent resident visa in the country you are storing it in (and you assume they won’t mess with your gold).
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Re: Safe Deposit Boxes Aren’t Safe

Post by dualstow » Mon Sep 23, 2019 6:40 pm

stuper1 wrote:
Mon Sep 23, 2019 3:25 pm
If I have a bunch of physical gold at home or in a safe deposit box, and if the government decides to do gold confiscation, which I believe I read has happened before many decades ago, then how does that work? What is the enforcement mechanism?
I guess you'll find out when it happens. :) Chances are, it wouldn't be the same as last time around.
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Re: Safe Deposit Boxes Aren’t Safe

Post by Ad Orientem » Mon Sep 23, 2019 8:13 pm

If you are storing prohibited items in your SDB and something happens, the bank is likely to invoke their contract as a further defense against liability in court. But mostly banks are likely just trying to make a show for the Feds that they are doing their bit in the fight against money laundering and organized crime.
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