From Resource Investor:

I consider gold and silver to be the bedrock asset of an investment portfolio. In other words, it is the foundation stone upon which the rest of a portfolio is built. Given this important role in which I hold the precious metals, it is essential to keep them safe.

Safety can mean different things to different people. Until recently, for example, many investors believed that Switzerland was isolated from the world's monetary turmoil. They, therefore, thought that the Swiss franc was a safe place to keep their money... but the illusion of safety vanished instantly when the Swiss National Bank announced that it would not let the Swiss franc strengthen beyond 1.2 Swiss francs per euro.

U.S. government debt instruments are another asset class that, in reality, offer only the illusion of safety. Scottish author and historian Niall Ferguson has warned that T-bonds and T-bills are a safe haven like Pearl Harbor in 1941.

Gold and silver are safe havens because they are tangible assets. Therefore, they do not have counterparty risk. In other words, there is no risk of default... but only if you own physical metal. Paper gold and paper silver are financial assets and therefore have counterparty risk. They only offer the illusion of gold and silver ownership.

So how does one keep their physical metals safe?

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