Why and How To Store Gold Offshore
But with fiat monetary policies of the developed world following the political aspirations that demand a race to the bottom currency game in order to fund deficit spending we have seen that change.
Fortunately, some forward thinking entrepreneurs have put risk capital on the line to give us choices for the average person to consider buying and storing gold offshore; safely, conveniently, economically.
The discussion on this page is with regard to physical gold. By that we mean real gold that exists in physical form, audited to ensure that it exists and is not the obligation of someone else. It may be in a pooled account, but the physical metal must be present in a vault and not be leased out for speculation.
Why Store Gold Offshore?
First we are going to presume that you already know why you want to buy gold, the question we will attempt to answer is why store gold offshore?
First, let us say that you likely want to own some gold and store it where you can quickly get your hands on it. Fine, absolutely no argument there.
Threat of Gold Confiscation
For Americans, the sophisticated gold buyer probably remembers (reading of) President Franklin Delano Roosevelt’s Executive Order 6102 of April 5th, 1933. With certain exceptions, including numismatic gold coins, gold ownership would be illegal for the average citizen of the United States until 1971. Gold was confiscated at the price of $20.67 per ounce.
Immediately after confiscation, FDR declared gold to be worth (remember, the US Dollar was on the gold standard, that’s how he could “fix” the price) $35 per ounce. That effectively reduced the value of the dollar by 65.2%, and robbed former gold owners of that purchasing power protection.
What a guy.
So there is precedent, even in the “Land of the Free and Home of the Brave” for government to forcibly take gold from its citizens.
Remember, the reason for doing so will ALWAYS be sugar coated in such a way as to make sure that 51% or more of the citizenry do not object; at least not too strenuously.
But let’s point out another key provision of the gold confiscation of 1933, near the opening of the document:
“prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States”
Which leads one to believe that any gold owned by a US Citizen and stored offshore would NOT have been subject to confiscation at the soon to be deeply discounted price of $20.67.
The threat of future gold confiscation in the United States or any other country you might live in obviously is one reason why you should store gold offshore.
Provide Access to Wealth Wherever You Are
Should there ever be a need for a person to leave their home country, you may or may not be in a position to take your gold or other financial assets with you; currency controls or other restrictions may prohibit it.
There are several global gold storage facilities that will allow you access to your gold, or to sell your gold and have the funds wired to you where ever in the world you happen to be.
Other companies we recommend for buying and storing gold will only transfer funds to your home bank account; and while that is great most of the time, be aware that this is a limitation restricting access.
More and more people are waking up to the advantages of being a “sovereign citizen”, “permanent traveler” or just having a “second crib”. In essence, these people want to avoid being part of a serfdom where the people exist only to serve their rulers and be taxed at confiscatory rates to support the ruling elite’s lifestyle.
Having wealth securely stored in multiple stable jurisdictions is part of a sound “flag planting” strategy.
How To Store Gold Offshore
Now that we have looked at why to store gold offshore, let’s look at some ways to do it.
Buy Gold Online And Store With Vendor
This is one of the easiest ways to get started buying gold and storing that gold in offshore vaults controlled by the firm you bought from. Now, just to be specific, when you buy gold online through one of many vendors, understand that the gold is typically stored in the vault of another company – often VIAMAT.
When you buy gold online through one of these companies you typically specify what city you want the bullion stored in; choices usually range from New York (mostly for non-US citizens), London, Zurich (very popular) and more recently, Hong Kong.
There are fees for storing your gold, also you may buy and store silver, platinum and possibly other precious metals, and these fees can vary by vault location.
Many times we find that U.S. Citizens are most comfortable with Zurich and Hong Kong; feeling that London is too closely allied with Washington, DC.
Two leading firms in this business are (in alphabetical order):
Store Gold Offshore In Bank Safe Deposit Box
If you have the interest and ability to travel abroad yourself, you have the option of storing your gold, even silver – although more difficult because of the bulk or platinum in a bank safe deposit box.
While this is typically not a very good idea in the United States, due to potential safety, insurance and tax issues, this is often done overseas with a fair level of confidence.
One would want to perform a fair amount of due diligence before storing your metal in a foreign bank safe deposit box, or perhaps enlist the help of a wealth consultant, such as BFI Wealth Management in Switzerland.
Store Gold In A Private Vault Offshore
Another option available, mostly if you travel there yourself but could be arranged otherwise, is to contract with a private vault in a jurisdiction known for where those services are safe and secure, like Austria or Switzerland.
Avoid London, where armed thugs with badges are just as likely to steal the gold and make you prove it is yours and that you have paid tax on the money as if it were in the United States.
VIAMAT will do business with individuals, but at levels that usually are not cost effective unless large amounts of gold or other precious metals are to be stored.
Buy And Store Gold in Private Vault With Investment Firm
With the prevailing trend of investors and really anyone with financial assets to protect rushing to acquire gold and store it overseas there are more investment firms setting up facilities for moving assets into physical gold and other precious metals.
One such offering is Global Gold of Switzerland. While a unique offering and a very personal level of service you may find it less convenient and somewhat higher fees than the online options.
This option does have its advantages, however. With Global Gold specifically you actually decide which type of gold bullion you want to buy, such as South African Krugerrands, which are then stored at VIAMAT in storage contracted by Global Gold but specifically allocated to you – and audited to make sure your gold is your gold.
By appointment, you can even visit your gold should you decide to.
Perth Mint Certificates
Perth Mint Certificates are somewhat unique, offered by an actual government mint in Western Australia. While the popularity of Perth Mint Certificates has waned somewhat as other alternatives to buying and storing gold offshore have become available, they are still a viable option.
In fact, should you choose unallocated gold storage – for which there are no storage fees – the Perth Mint is a much better option than say, Kitco of Canada, as Kitco is a private firm recently put in receivership by the government of Quebec alleging tax fraud.
When it comes to allocated storage, however, other firms will prove to be more advantageous from a fee standpoint and even offer greater flexibility of features.
While there is a place for unallocated gold in your portfolio, most purists would insist that to qualify as physical metal you must have gold allocated in your name.
As you can see, with many of these options your gold can end up being stored offshore in the same location, just in a different “box” so to speak.
The key is that you take action and get it done. Buy some gold and get it stored offshore, while you still can.
Choose more than one method for diversification – although you will pay slightly higher storage fees that way perhaps.
The QUICKEST way to get started and move some wealth into gold that is stored in another country is probably BullionVault. Opening an account and getting it verified is a very quick process, funding the account is easy and they currently are offering a “sign up” bonus of 4 free grams of Silver.