International Depository Services Review: Best Gold Storage Option?

When it comes to facilities that store physical precious metals, International Depository Services, or IDS, is one of the big three. The others you've probably seen mentioned are the Delaware Depository and Brink's. 

Each of the three facilities  has a unique profile and will be ideally suited more for some than others. Even though security is the first thing that comes to mind, these facilities are obviously meant to be well-protected. So a better starting point for our International Depository Services review might be locations.

International Depository Services Review: Storage

Currently, the International Depository Services offer clients the option to store their bullion in three different places: Texas, Delaware and Ontario. All three locations are members of the London Bullion Market Association to some degree.

For example, IDS says that their Canadian depository is one of eight facilities in the world suitable to hold LBMA gold and silver bars, which are the bars that are going to be in your precious metals IRA. That's not a very high number...

It also says that the Delaware location is one of the few such facilities in the world that are approved for the storage of all precious metals by COMEX and ICE. These entities store massive gold and silver bullion bars, or are supposed to, that are used to cover non-physical precious metals trading. 

In other words, your gold Canadian Maple Leaf or gold Australian Kangaroo could be rubbing sides with some of the biggest names in finance. Not too closely, though, as we hope you chose segregated precious metals storage.

That leaves the Texas IDS Group depository, which is the first bullion depository in the state and remains its largest. Which of the three facilities you choose probably will have to do with location more than anything. 

Canadians buying metals through a gold RRSP would go with the Ontario, Canada location. If you're storing within a precious metals IRA, Ontario won't be available, leaving us with the question: what's closer to you, Texas or Delaware?

Related: How to Diversify Your IRA with Physical Gold (Free Guide)

International Precious Metals Review: Security

The vault door is pretty sturdy... In all seriousness, security is how precious metals depositories make their name, which means all stops are pulled. They tell us as much on the International Depository Services group website, saying that it has been their top priority since the day the vaults were opened. As you'd expect and hope from a top storage facility, security measures are always changing as new options become available.

IDS obviously goes to some lengths to describe the security in their vaults, so we'll try and keep it concise. Impenetrable walls, barriers, multi-access locks, multi-redundant alarm systems, monitoring of both the alarms and the facility 24/7 by off-site security... you get the picture.

Class III is a term you might have come across if you've delved deep into the world of cold storage, and IDS reveals that each of their facilities unsurprisingly has multiple Class III gold vaults. It's the highest possible rating a vault can get that marks that extra step when it comes to security.

Of course, walls only go so far when it comes to insuring your precious metals.

Related: Add Physical Gold & Silver to Your IRA (Tax-Free)

What are some of the non-physical security methods used by IDS?

It's hard to say which is the most important out of the bunch, but a contender might be that all the metals are stored off the company's balance sheet. That means that even if your precious metals depository goes bankrupt, you can joke about the absurdity of it while knowing your bullion remained safe. It's the kind of reassurance we can't get enough of during the early stages of a banking crisis.

Another important point is that IDS' insurance is truly all-inclusive. You might hear that thrown around a bit, but it doesn't always fully translate to reality. The insurance policies in question sometimes exclude things like environmental damage, but this appears to be covered in the case of IDS.

On top of constant inspections of the items held in storage, IDS' employees are also encouraged to monitor for any suspicious behavior from their coworkers and are incentivized if they report something. If Danny Ocean was working in an IDS facility, it might be more profitable for him to report the gang rather than to pull off the heist.

International Depository Services Group clients

IDS facilities are used by both large companies and individual investors. There isn't really a rule when it comes to whom IDS caters to, past owning physical precious metals. COMEX is obviously an example of a big player. Numismatic and bullion dealers can be mentioned, too.

Precious metals IRAs customers can fall somewhere in the middle. They can be large or medium-sized accounts, but IDS has no challenge in meeting the IRS agency’s lofty storage requirements. If you've opened a precious metals IRA account through a reputable company, chances are you've either seen IDS listed as one of the available depositories or can have access to it upon request.

Related: Buy Physical Gold & Silver with Your 401(k) - Tax-Free

IDS' services are also available to individual bullion investors regardless of how large their exposure to the physical precious metals market is. Of course, there are some fees associated with storage that you can expect, which IDS roughly outlines as follows:

·        $100 for insurance every 6 months in the Delaware facility and $300 for the Texas facility

·        .65% of the account value fee for accounts with up to $250,000 in precious metals investments (percentage lowers depending on account size)

·        Going up to $5,000,000 in precious metals investment, the fee is still no higher than .30% of the account value

You might see quite a few precious metals IRAs companies offer to waive storage fees for a year, or even a decade. Some even waive them for a lifetime.

How important this is to you depends on your account value and how long you intend to store the metals. While the fees are generally undersold in terms of relevance, they can hit you as a surprise if neglected.

Regardless of the client, IDS extends everyone they're doing business with an account on the website. Through it, you can have year-round monitoring of your possessions and take care of any fees or issues that might arise throughout your usage of the facility.

There's not a whole lot to be said in negative terms about International Depository Services. They do what they do well, and your precious metals will likely find themselves comfortably suited so long as Delaware or Texas remain a suitable gold IRA storage option for you.