How to defend your gold from confiscation
- 19 Dicembre 2018
- by Blogger
The State’s gold standard is a preliminary to eventual confiscation or debasement. The State’s promise of redemption on demand should not be trusted.
A gold coin standard by profit-seeking storage organizations can be trusted with less risk, but not if the storage is offered for free. There are no free lunches. Someone will eventually pay for free services. When it comes to fractional reserve banking, that someone is always the late-coming depositors.
This is why any call by conservatives for the State to adopt a gold standard is futile. No one will listen. Even if voters understood the case for a limited State, they would not be able to limit the State by a State-run gold standard. A State-run monetary system, with the exception only of Byzantium, becomes a debased standard.
This is why the free market is the only reliable source for the re-establishment of a gold standard. Honest money begins with these steps: (1) the revocation of legal tender laws that require people to accept the State’s money; (2) the enforcement of contracts; (3) laws against fraud, which fractional reserve banking is. The free market can do the rest.
Offshore Gold Storage "For When The GOVERNMENTS Decide You Shouldn't Own It"
“If your gold is outside the US, it gives you another degree of insulation should the United States decide that you shouldn’t own it—it’s not a reportable asset.”
- Doug Casey, May 2017
I’ve been a holder of gold since the 1970’s. At that time, I was purchasing gold and silver for business reasons and found that, as the price was steadily increasing, I’d be wise to buy more than I needed immediately, as I’d most certainly profit from it in the near future.
At that time, I was buying most of my precious metals in Hatton Garden, the centre for physical metals usage in London and, in talking with my more experienced associates there, I learned that gold doesn’t just make pretty jewellery, it has, for over 5000 years, served as man’s best economic insurance policy.
Since the creation of the first fiat currency in China, ca. 600 AD, governments have had the annoying habit of creating fiat currencies. It has taken many forms, including tobacco, shells, cattle, even tulips in 17th Century Holland.
Over the centuries there have been countless fiat currencies. Most of them have been paper currencies and, with the exception of the present-day fiat currencies, all have eventually become worth exactly zero.
Not a very good track record and, in my estimation, those fiat currencies that still exist will also come to an end, possibly soon. But whenever a fiat currency has come to an end, gold has retained its lustre and saved the day, providing a solid means to store wealth. Although governments and bankers have done all they can to discredit gold and discourage its use, gold invariably outlives them all. Whenever history has seen periods of dramatic overreach by banks and/or governments, gold once again re-establishes the very definition of money.
Today, we’re passing through one of these eras of overreach and, not surprisingly, those who are farsighted, are quietly building up their store of gold, to protect them when the latest form of fiat currency joins the rest that have collapsed over the centuries.
But, having realized the need to own gold and then beginning to build up a portfolio, the holder asks himself, “Where should I keep it?” The obvious answer is at home, or somewhere very close, so that he may get to it easily, if need be. During good economic times, this may well mean in a safe deposit box in a bank, but in times like the present, when governments (the EU, US and Canada, amongst others) have recently passed laws allowing banks to confiscate deposits and raid safe deposit boxes, the last choice for safe storage would be a bank.
This leads us to the “at home” option. This is actually a good one. If you have a yard where neither dogs nor gardeners tend to dig holes, “midnight gardening” can indeed be a good solution for small amounts of gold storage. Or, for a neater and more easily accessible solution, a home safe might work well. (You would, of course, want it to be well-concealed and you’d need to install it yourself, or the installers might get ideas.)
But, when turbulent times come, as they have recently, this only works well if you own a small amount of gold, say ten ounces or less. If you hold more at home, you run into the problem of governments. In 1933, US President Franklin Roosevelt demanded that all gold be turned in to the government. He subsequently revalued it and, in doing so, robbed its rightful owners of a 69% increase in their wealth.
Unfortunately, since we know that the EU, US and Canada have all passed confiscation laws, those jurisdictions are no longer safe places to store wealth. Ten ounces of gold may be regarded as an emergency stash but, beyond that, another jurisdiction is needed – one that’s not threatened by confiscation laws.
What I’ve recommended to investors for decades is to first choose the best jurisdiction that’s relatively near to you, then pick the safest storage facility within that jurisdiction.
Recently, I’ve been asked more and more often to get specific and open up about my personal preferred facilities. I’d rather describe the benefits and pitfalls and leave the investor to do his own homework, but as a result of increasing requests, these are my personal preferences:
In Asia, Singapore is an excellent jurisdiction and The Safe House is an exceptional choice.
However, the Western Hemisphere is a different story. There are quite a few excellent depositories in the US and Canada, but, as stated above, I no longer regard these jurisdictions as safe. In my travels elsewhere in the hemisphere, I’ve been disappointed to find that, whilst there are jurisdictions that are safer than North America, the depositories there leave a great deal to be desired. (On one occasion, in Uruguay, I took one look at the outside of the depository’s building and never even bothered to go in. Although it was considered the premier facility there, it didn’t come close to my expectations.) Others, such as those in Panama, have been similarly disappointing.
What the depositor should be after is a facility that’s heavily reinforced on all six sides (meaning that the ceiling and foundation must be just as impenetrable as the walls). In addition, it would need a Class III bullion vault – the equal of the best bank vaults. In addition, it should have multiple security doors and man-traps leading to the vault, assuring that no one who enters can make a dash for the exit. This virtually eliminates the temptation for theft.
Unfortunately, to my present knowledge, there’s only one depository in the Western Hemisphere that ticks all the boxes. Or perhaps I should put that another way: Fortunately, there is one depository in the Western Hemisphere that ticks all the boxes.
That depository is SWP in the Cayman Islands. Most importantly, it’s located in an exceptional jurisdiction as regards wealth safety. And, by this I mean:
- No direct taxation of any kind. No taxes or duties that apply to the purchase, ownership, storage or sales of precious metals. No capital gains tax; no inheritance tax. No sales tax. No VAT.
- World-class financial system to provide auxiliary services.
- Stable government with consistent history for economic stability that caters to international investors.
- Minimal wealth legislation and regulation, to assure a minimum of red tape in processing purchases, sales, transfers and shipment of metals.
Secondly, SWP ticks all the boxes as to being a top bullion storage facility. Further, the SWP contracts were designed to take the best from each of the world’s other depositories, having been vetted by one of the world’s most respected gold analysts (who, possibly not coincidentally, became the first depositor). Also, it’s only an hour by air from the US.
It’s also essential that your deposit is fully insured and that the storage be fully documented, allocated and segregated, as in the photo below of an incoming deposit:
For Americans, an offshore gold IRA is becoming an essential and SWP has an excellent gold IRA.
Over the past decades that I’ve been advising people on geographical economic diversification, I’ve often said that the coming events themselves are relatively easy to predict, but the timing is not. To me, the one clearest indicator of timeframe is that, the closer a crash gets, the more events will increase in both frequency and magnitude. Based upon that premise, we’re drawing quite close to the first of the crashes, as we’re now seeing significant events almost daily.
This tells us that our time is limited and that our long-term plans for wealth preservation need to be in place now. Whatever choice the reader makes to safeguard his wealth, he will need to do it very soon. Time is very clearly running out.
If you’re in Europe, Switzerland is a good choice and Auromoney is an excellent depository. Auromoney is the easiest way to buy and hold as much physical gold as you choose. You can buy shares of LBMA gold bars (starting from 0,001 g), that are kept in high-security vaults in Switzerland, and you can sell them back whenever you want. From the control panel of your AURO account, you can directly buy, sell and withdraw physical gold with a few clicks and monitor your transaction status and your current balance. On daily basis it is published an anonymized list of all current accounts and their balances. On daily basis it is published the deposit certificates issued by secure storage partner which verify the exact amount of gold deposited by Auromoney and on behalf of customers. On a monthly basis it is published the inventory list of the gold bars issued by the secure storage company, with information about manufacturer, grade and the serial number of the gold bars.
Every six months it is published the full Audit report compiled by a leading consulting firm that encompasses the quantity and quality of the gold that is stored by the secure storage partner on behalf of Auromoney and their customers. (Download the proof of existence)
Moreover Auromoney chose to use a Blockchain-based register in order to certify and guarantee the ownership rights and daily balances for customers, in a public, verifiable, tamper-proof, and immutable manner. To guarantee the ownership rights, in addition to the official documentation which is regularly provided by Auromoney (invoices, details of the orders, account statements), it is also registered the customers’ daily balances in a public, pseudonimous and decentralized Blockchain ledger. The public listing of the balances is made in an anonymized format to safeguard the privacy of customers, who are the only ones that are able to identify their account and the related balance. Using Blockchain technology to record and publish the relevant information prevents anyone, Auromoney included, from modifying the daily balances of the deposit accounts, altering transaction details or tampering with ownership data. (Verify the proof of property)
Source: International Man
This article does not constitute investment advice and is not a solicitation for investment. Auromoney does not render general or specific investment advice and the information on this article should not be considered a recommendation to buy or sell gold or precious metals. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. Moreover, the original article of the International Man has been modified by our staff to signal the better opportunity that customers can seize by choosing Auromoney.