Safety Deposit Boxes

[ah2bwise-migration]

Has anyone ever heard of depositing coins in a safety deposit box and then making money off of the net worth of the coins? Does that even make sense? Say you have a coin worth 2000.00 and you deposit that coin in a deposit box and the bank gives you a portion of the interest. That way you not only own the coin but you make money off of the value of the coin so long as you leave it in the box. I think that would be soooo cool. Think about all the money you have wrapped up in coins just sitting around generating no income. What if there is a fire in your home? Bye bye coins Anyone heard of such a thing or am I being goofy?

[Dcoin]

It sounds like a good idea but the reason that banks give you interest on savings/CD accounts is that they take your money and invest it elsewhere for a higher percentage. They give you a piece of that return. Even though your coins have value they cannot earn the banks money. In other words if they aren’t earning money neither are you.

 

Aside from that it is a good idea to always keep valuables at the bank.

 

Dcoin

[BillJones]

Sorry, but your idea is goofy.

 

Banks pay interest on money that is deposited to accounts because they loan it out to individuals and businesses who pay them interest. A coin in a safe deposit box can't go anywhere or be seen by anyone. There is no benefit to bank, and they don't pay interest for nothing.

 

Your question reminds of the old foolishness where people who deposit money in the bank go in and ask to have a look at it. The bank might show you some money, but chances are it would not be your money. YOUR money is out working earning the bank money.

[TomB]

If I am reading your idea correctly it is complete fantasy. Banks do not know what is in your safe deposit box and many banks require that their employees look the other way if they are in your presence when you open the box. The entire contents of a safe deposit box are unknown to the bank and for this reason you have no insurance on your property that is held within a safe deposit box. This is why, to be covered, you need to purchase outside insurance for your items kept within a bank safe deposit box. Therefore, no bank will give you interest on any claimed contents of a safe deposit box.

[Zoins]

Bank interest is not a good analogy because the money needs to replacable with other money and who wants to loan out their Saints at the $20 face value A better analogy is stocks because they have value that can fluctuate and they can be borrowed. For example if you think a stock is going to tank and you want to sell it at current prices but don't own any, you can borrow it and sell it as long as you replace it later (hopefully at lower future market prices). While the stock is being borrowed, the owner gets interest.

 

Coins can become the same way if they are true commodities and can be loaned out for other people to sell. If you think your NGC MS66 Saint is just like any other one and don't mind someone borrowing it, selling it and replacing your coin with a different NGC MS66 Saint, then sure, you may be able to make interest on it if someone creates that kind of service.

[MikeKing]

I think the way it is now, you have to PAY the bank to keep your coins in a safe deposit box!

[Conder101]

Sounds like what you are after is something like a coin mutual fund. You put money into it and can draw money out if you need to. Meanwhile the managers buy and sell the coins in order to make the value of the coin fund grow. The State of Ohio tried that. See the Thomas Noe scandal. Now IF the managers are honest it could be done. But after the Ohio disaster I would not expect to see it tried again for some time. (They tried some coin funds in the late 1980's as well. A couple of them did well but most of the investors either lost their investment or had a lousy return on the investment. After those coin funds they didn't try again until Noe.)

[ah2bwise-migration]

Thank you to all of you. You have been very enlightening!!

[coinresource-migration]

How old are you?