Which is safer? Pun is too obvious, sorry.

Ok, this poster raises interesting questions which everyone should think about, but I will add some more to the mix.

When considering safe deposit boxes, there are more things to think about than just the safety of your coins.

First, let me comment on the earlier message from Paul Kiraly insofar as the IRS doing audits and perhaps questioning the contents of the box and so on. I understand that the IRS may audit bank accounts, but I cannot imagine that the IRS would audit the contents of a safe deposit box. I will add that I am NOT a lawyer, nor an accountant, nor do I work for the IRS, so I am in no way an expert on this.

It just seems to me that even IF an audit were to occur, it would be announced, well in advance, and you would have the opportunity to remove any contents from a box, if you so chose. Again, this presumes that the IRS does audit a box, but I am unfamiliar with this and would be curious to hear about the circumstances under which the IRS does this.

That issue aside, let's focus on the good and the bad of a safe deposit box:

Positive:

Relatively secure.

Not subject to the average home break-in.

If home was broken into while you were there, and if you were held at gunpoint, would you open a home safe? Safe deposit boxes in a bank have an advantage over this in that regard.

MYTHS about safe deposit boxes:

Contents of a safe deposit box are NOT insured by the bank, nor by the FDIC, nor, generally, by your homeowners insurance policy.

Therefore, if you maintain a coin collection in a safe deposit box, you should secure adequate insurance coverage for your collection. If you are an ANA member, you may obtain coverage underwritten by AXA through the Hugh Wood Agency in NYC. Information is available at the ANA's web site www.money.org

Safe deposit boxes are NOT 100% secure. While rare, robberies can occur. Again, this is reason enough to have insurance for your collection, even if it is in a safe deposit box. If your collection remains there, rates may be less expensive than if you travel with your collection or if you are a dealer.

Safe deposit boxes are THE best places to store your coin collection. - MYTH. Many safe deposit box rooms are HUMIDIFIED specifically because the MAJORITY of bank customers store documents (wills, birth/marriage certificates) and/or cash in them. Therefore, by humidifying the rooms, they are helping to preserve PAPER.

However, for coins, HUMIDITY IS THE ENEMY. Therefore, if using or considering a bank safe deposit box, contact the bank manager, not just a teller who probably has no idea, and find out if the bank humidifies the vault area where the safe deposit boxes are kept. Also, using moisture absorbing packets in your box may be wise for coin collectors, whether or not your bank humidifies. I've also heard of collectors storing their coins in tupperware type containers and/or ziploc bags to prevent moisture from invading.

Imagine this scenario: You lived in New Orleans a couple years ago during hurricanes Katrina and Rita, and your bank was literally UNDER WATER for days, weeks or LONGER. How would your previous and even PRICELESS coin collection have fared in that safe deposit box? Just ONE MORE REASON FOR INSURING THE CONTENTS!

ON TO HOME SAFES:

Home safes can provide a great deal of safety.

According to police statistics (as quoted from a safe web site):

"Police reports indicate most thieves want to get their jobs done as quickly as possible to reduce their chances of getting caught. Most break-ins are the smash and grab type?getting their job done in 10 minutes or less?and surprisingly between 10 a.m. and 2 p.m. in the afternoon. Young males, 18 to 26, most often commit these crimes. Their goal is to be gone before police can respond to a home security system or a neighbor?s phone call."

Why should you buy a home safe? According to Liberty Safe, at:

http://www.libertysafe.com/homesecurity.lasso?page=2

The answer is:

"When you buy a residential security or gun safe what you?re really buying is time. Time to protect your valuables from a thief. What are they looking for? You might think cash and jewelry are the top items stolen during a home burglary, but they are actually fifth on the list. Stereo equipment is fourth, followed by video equipment?grouped as TVs, VCRs and cameras. Guns are the number one items stolen in a home burglary. Can you guess what?s second? Booze and cigarettes! Go figure."

I find that starting, guns, booze, cigarettes!

The Liberty Safe web site goes on to say:

"When a thief enters a home or office, the real deterrent seems to be the addition of a residential security or gun safe. Police reports indicate that when a thief sees a shiny, heavy-duty safe they generally leave without taking a thing. They're left to mumble, "Anything of value is probably in that safe and we don't have the time nor the tools, so let's just go to the next house."

I happen to agree with the statement, assuming that they break in when no one is home.

I read an article in The Numismatist (the official publication of the ANA) recently. The article described a numismatist who left her collection with her parents at her childhood home. Her parents were robbed, at gunpoint, and everything was stolen, her entire collection specifically.

It leads me to wonder, if you were HOME and were robbed at gunpoint and had such a safe in your home, would you just give over the combination to safe your life or that of your family or loved ones? Food for thought. I mean it's all well and good when you ARE NOT THERE, but what if the robbery occurs when you are? I would have said that is less likely, until I read that article in The Numismatist, and clearly, it can happen.

However, for the most part, if you have a large collection, I suspect a safe deposit box is unlikely to be able to hold it all, and therefore, I would encourage anyone to buy a safe like the earlier poster suggested.

As for the size of the safe, I wouldn't go small, I would suggest going LARGE. In fact, whatever size you THINK you need - DOUBLE IT. That may mean buying the largest size they make, but if so, so be it. It is far less expensive to buy one large safe than it is to buy one smaller to medium size safe, only to discover within a few months or a year that you need another one. Not only in delivery, but in having a place for it in your home or office.

Also, regardless of the safe, I again urge INSURANCE COVERAGE FOR THE CONTENTS OF THE SAFE. Most of these safes are fireproof for a specified amount of time, depending on the model you select. However, they are not, for instance, water proof. So, if you had it in a basement, what if you had a flooded basement due to exterior water problems (lots of rain), or internal home issues such as a water heater that broke or some pipe trouble.

As for the insurance, a reminder that even in your home, MOST homeowners insurance policies will NOT cover coin collections. OR, if they do cover a coin collection, the coverage will be VERY limited, such as $250 to perhaps $1,000 of coverage. For many of us, that could amount to A SINGLE COIN!