KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Discussion of the Gold portion of the Permanent Portfolio

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shekels
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KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by shekels » Tue Jun 11, 2019 9:48 am

https://www.silverdoctors.com/headlines ... sit-boxes/

Here is the article in case it is not widely known.
Also Chase bank has already banned storage.
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by boglerdude » Tue Jun 11, 2019 10:30 pm

Why do goldbugs like silver? Isnt gold the perfect currency
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by jhogue » Wed Jun 12, 2019 7:37 am

shekels wrote:
Tue Jun 11, 2019 9:48 am
https://www.silverdoctors.com/headlines ... sit-boxes/

Here is the article in case it is not widely known.
Also Chase bank has already banned storage.
If I read Keybank's notice correctly, there appears to be a loophole in their gold ban:

It does not forbid the storage of semi-numismatic coins, like pre-1933 circulated $20 American Eagles, which pretty much track the price of gold with a small premium.

On the other hand, why bother with an institution that obviously doesn't want our business?
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A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by Cortopassi » Wed Jun 12, 2019 3:53 pm

I never understood safe deposit box limitations. I assume I can store millions of dollars in jewelry in one, right? So if the bank gets robbed and my box cleaned out, really, I can make a claim on something like that? How?

I assume there is a lot of not technically legal or allowed stuff stored in boxes. Why single out gold. I would not expect them to insure it anyway. I wouldn't expect them to insure the family DVDs I have in there either. If there's a flood, and the DVDs are ruined, do I have a recourse?

Just so happens Silver Doctors sells really expensive home safes on its site. Hmmm.

Here is the relevant portion of the Chase box agreement. Basically saying we'll do our best. What more can you expect?

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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by jhogue » Wed Jun 12, 2019 6:56 pm

What caught my attention in the Chase notification was the $25,000 cap on value, which seems simply ridiculous from both the perspective of the bank and its clients. For instance, why should Chase know or care if I have more than that amount in I-bonds?
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by technovelist » Thu Jun 13, 2019 11:00 am

boglerdude wrote:
Tue Jun 11, 2019 10:30 pm
Why do goldbugs like silver? Isnt gold the perfect currency
Not all goldbugs like silver.

It's fine for a small amount like a bag or two of dimes, to be used as daily spending money in the event of hyperinflation. That's about it as far as I'm concerned.
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by dualstow » Thu Jun 13, 2019 11:14 am

Wow, the comments on the Silver Doctor site show they are fringe-ier than we are, and that's saying something.

Still, this is disturbing news. I do keep my coins at a bank, and I hope that this ban will not become a trend.

Mark (member link) had some good advice that he posted here several times: wine storage companies. As he pointed out, they don't know what you're storing any more than the bank does. I doubt it's cheap, but it's a potential solution.
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by stuper1 » Thu Jun 13, 2019 1:19 pm

If the bank doesn't know what's in my safe deposit box, then how can they enforce such a ban? Aren't they really just saying that they won't accept more than $25k in liability? How would they ever know that I have gold in there? What would they do if they found out? Confiscate my gold?
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by dualstow » Thu Jun 13, 2019 2:00 pm

Look at this excerpt from Key's own site:
The other types of items that are smart to keep in your box are valuable items you don't often access. Things like jewelry you wear just once or twice a year, (small) art pieces that you've purchased as an investment, precious metals, and some antiques can all be stored in a safe deposit box.
and
Final Thoughts
Most people think of safe deposit boxes as a place to keep valuables, but this is only partially true. Most valuables are just as safe in your home under an insurance policy. The exception, like we mentioned above, are smaller investment items like gold or rare stamps.
Ok then. I guess they should edit that page.

https://www.key.com/personal/financial- ... -boxes.jsp
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by Tortoise » Thu Jun 13, 2019 2:21 pm

The gold ban doesn’t make much sense to me, either. As long as it’s clearly stated that the bank will insure only up to $X per box, why do they care whether a box contains gold or not?

Something isn’t quite adding up. Unless they’re specifically banning gold bullion since they know it’s the most common violation of the $25k insurance limit. Kind of like how drunk driving is illegal, not just personal and property damage caused by drunk driving?
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by dualstow » Thu Jun 13, 2019 2:25 pm

Tortoise wrote:
Thu Jun 13, 2019 2:21 pm
Kind of like how drunk driving is illegal,
Uh oh, are they going to make us walk a straight line at the bank, while carrying our boxes?
I already have one teller exclaiming "it's heavy!" which makes me nervous.
You know you’re into the pp when you see expiration dates at the grocery store and think, I have some bonds coming due then.
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Re: KeyBank Bans Gold Bullion from “Safe” Deposit Boxes

Post by Kbg » Sat Jun 15, 2019 10:12 am

I think this is no more complex than liability. I’ll bet if you signed a release they wouldn’t care what you put in your box unless what was in the box was illegal or dangerous to their employees’ health.
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