Adviser Helps Clients Recover Buried Gold Before Cleanup

Greg Welborn, a financial adviser in Pasadena, California, recently assisted clients who had buried several carloads of gold in their backyard after a wildfire destroyed their home. The Army Corps of Engineers planned remediation that would clear and bulldoze the burned lot, creating an urgent need to recover the holdings.

The clients dug up the bullion at night with flashlights to avoid discovery. Welborn then advised immediate steps to protect the recovered metal, starting with moving it into a fireproof, high-security safe for short-term storage.

Welborn identified physical and security risks tied to burying bullion, including moisture and soil corrosion that can damage bars, accidental discovery during routine yard work, theft and the risk of forgetting the exact burial spot. He also warned about the dangers of revealing the location to others.

“Standard home insurance policies don’t cover precious metals outside, or even those kept inadequately secured within the home,” Welborn warned.

For longer-term protection, Welborn recommended a private bullion depository because insurers can limit or deny coverage for large quantities stored at a residence. He also outlined banking and tax issues that arise when converting gold into cash or marketable securities.

Welborn pointed out that deposits above $10,000 are reported by the receiving institution to the U.S. Treasury, which can prompt review of prior tax filings. He advised clients to plan for those reporting requirements before selling large amounts of bullion.

To retain a small portion of physical metal, Welborn advised limiting holdings to 1-ounce bars or sovereign coins, which are easier to store and insure. As an alternative to holding metal at home, he recommended investing in precious metal exchange-traded funds for easier convertibility and to avoid storage and insurance complications.

After discussing options, the clients kept a limited amount of the recovered gold and moved the remainder into more secure or liquid forms based on Welborn’s recommendations. The case was among several unusual retirement plans reported by financial advisers.