Category Archives: Legal

Storing Precious Metals Focus Of Numismatic News Article

Yesterday, I pointed out a new “how-to” video entitled “How To Store Silver Bars And Coins At Home” by the folks over at GoldSilver.com, a global leader in gold and silver sales and one of the world’s most highly regarded investment education companies since 2005.

This comes a few weeks after a different piece about precious metals storage appeared on the website of Numismatic News. Back on March 9, Pat Heller penned an article entitled “Hard assets make soft targets?” in which he discussed the advantages/disadvantages of keeping precious metals in bank safe deposit boxes (a number of the “drawbacks” don’t apply to their private, non-bank brethren) and other “storage alternatives” including:

-“Hidden storage on your property”
-“Storage in safe or strong box on your property”
-“Precious metals vault storage”

It’s an interesting read, which you can view in its entirety over on the Numismatic News site here if you didn’t catch it a couple of weeks ago.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to taking any action- financial or otherwise- based on information found in this weblog. If this recommendation is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

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GoldSilver.com Video: ‘How To Store Silver Bars And Coins At Home’

Long-time readers of Offshore Safe Deposit Boxes might remember an April 22, 2014, blog post mentioning Mike Maloney of GoldSilver.com, a global leader in gold and silver sales and one of the world’s most highly regarded investment education companies since 2005. The founder and owner had just come out with a video in which he warned precious metals are not safe being stored in a bank safe deposit box.

These days, Maloney and gang are out with a new “how-to” video which readers might be interested in viewing. In “How To Store Silver Bars And Coins At Home,” senior precious metals analyst Jeff Clark and Mike Maloney tackle the following questions:

1. “So how do we store our silver bullion both efficiently and safely?”
2. “And should it be stored at home anyway?”

Storing silver in bank safe deposit boxes and at private, non-bank vaults is also addressed. From the video:

Should We Use a Bank Safe Deposit Box?

Easy, simple, and relatively inexpensive- those are the advantages to using a safe deposit box at your local bank. But, consider the drawbacks:

-Your access is restricted. You can only get to the bullion during regular banking hours. No evening, weekend, or holiday access. In fact, during 9/11, some banks were closed for a period of time.
-No insurance against robbery or disaster. Think about the customers whose safe deposit boxes were washed away with the tsunami in Japan in 2011.
-Lack of privacy. If the government or an aggressive attorney comes after you, they’ll thank you for the generous clue you provided them of where some of your assets are stored.
-Also, silver takes up so much space that you’d likely be forced to pay for a larger box. And it might not be an option at all. A monster box of silver is too big for most bank safe deposit boxes.

Remember, one reason we own physical bullion is to protect against the banking system. If you go this route, be aware of the risks and only place a small portion of your metal there.

What About a Professional, Third Party Vaulting Service?

Once your stash starts to grow, I recommend you consider professional storage. Your risk grows as you accumulate more metal. You don’t want to be wiped out if something happened to your stash at home.

The keys to professional storage are that your metal be held:

1. Outside the banking system
2. Fully segregated or allocated in your name
3. Fully insured, and
4. Easy online access…


“How To Store Silver Bars & Coins At Home- Mike Maloney”
(Bank/private vault discussion begins at 11:36)
YouTube Video

A nicely-done production by Clark and Maloney.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: The mention of entities marketing themselves as precious metals dealers/educators should not be construed as confirmation of services claimed to be provided or any sort of recommendation. A qualified professional should be consulted prior to taking any action- financial or otherwise- based on information found in this weblog. If this recommendation is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Maloney’s book on gold/silver investing…

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Economist Martin Armstrong Warns Of Storing Assets In U.S. Bank Safe Deposit Boxes

We’re back after a short break. And to jump start the continued discussion about asset protection outside the United States, I’d like to point out a February 25 blog post by economist Martin Armstrong on his company’s website. Regular readers of Offshore Safe Deposit Boxes know that Armstrong brings up bank safe deposit boxes from time to time, and the head of Armstrong Economics penned the following while I was away:

Keep in mind the government can close all banks for there is precedent. Whatever you have in a safe deposit box can also be seized and inspected.

There is no precise law against storing metal or cash in a safe deposit box. But law is malleable in the hands of any judge. He can seize the money or gold under the pretense of money laundering hiding it from the government. Under Civil Asset Forfeiture, they can assume the money is guilty of a crime being even tax evasion. It then is your burden to fight in court to get it back if you can hire a lawyer…

(Editor’s note: Bold added for emphasis)

Keep in mind that Armstrong is referring to safe deposit boxes in U.S. financial institutions here, not secured storage containers located in private vaults outside the American banking system.

That being said, the economist sees a “global trend” in the seizure of assets through claims of money laundering and tax evasion. I blogged back on June 6, 2016:

Martin Armstrong… has chimed in on the new HSBC safe deposit box regulations in Hong Kong. He issued this warning on his company’s blog Friday:

Governments are targeting safe-deposit boxes to look for cash that is hiding from taxation. HSBC, a U.K. bank, is now moving against claimed financial crimes by altering conditions for safe-deposit boxes. This is becoming a global trend. Anything of value that is stored in a safe-deposit box is now considered money laundering. Governments want their taxes and all the laws are changing to ensure they get their money.

(Editor’s note: Bold added for emphasis)

“Anything of value that is stored in a safe-deposit box is now considered money laundering”

Does that include legally-purchased and owned precious metals (with receipts to boot also showing taxes paid when applicable)?

Once again, these are bank safe deposit boxes Armstrong is talking about.

To date, I haven’t encountered anything by Mr. Armstrong about boxes in private, non-bank vaults.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Source:

Armstrong, Martin. “Is it Safe to Store Gold in a Safe Deposit Box?” Armstrong Economics Blog. 25 Feb. 2017. (https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/is-it-safe-to-store-gold-in-a-safe-deposit-box/). 7 Mar. 2017.

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Related Reading: Another Take On ‘Old’ Gold Coins Being Better Than Bullion Against Confiscation

Earlier this week I discussed two recent blog posts by economist Martin Armstrong concerning what he thinks is the most effective way to possess and retain physical gold in the face of government confiscation.

My understanding was “genuine old coins,” as:

Coins are better than bullion for they have some historical value. Their historical value could be an excuse to prevent confiscation if government simply declares that “gold is for criminals,” as they are trying to do with cash…

Another take on this comes from offshore expert Mark Nestmann, head of Phoenix, Arizona-based The Nestmann Group, who pointed out the following on The Silver Bear Cafe website some time ago:

Some coin dealers claim that numismatic (collector) coins would be exempt from any future government confiscation of gold and silver. This claim is based on the terms of Roosevelt’s 1933 emergency order, which specifically exempted “coins having recognized special value to collectors of rare and unusual coins.”

Some firms say that premiums of at least 15% over the spot price of bullion magically turn coins “numismatic.” This notion is based on a proposed federal regulation issued in 1984, but never adopted. Other dealers claim that coins 100 years or older are automatically converted to numismatic status.

It’s beyond me why anyone takes these claims seriously. Why would a government that stole its citizens’ property in 1933 be consistent when it does so again?

Nothing obliges the federal government to pay by the same set of “rules” it imposed 75 years go. Nothing obliges the federal government to honor the terms of a proposed regulation issued a quarter century ago. And naturally, those rules can change at any time

(Editor’s note: Bold added for emphasis)

What Nestmann wrote has stuck with me as I keep coming across the debate over what makes a coin “numismatic.” I even stumbled on the following just the other night on the website of a company offering asset protection services:

For a coin to be numismatic, its retail price must be double the value of its metal content.

Perhaps all for naught, according to Nestmann?

An insightful piece (he does espouse positioning “some gold and silver bullion outside the United States, preferably in a safety deposit box or a private vault”), which you can read in its entirety here on The Silver Bear Cafe site. For more information about The Nestmann Group, visit their website here.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: The mention of businesses above should not be construed as confirmation of services claimed to be provided or any sort of recommendation. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

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Proposal To Seize ‘Suspicious’ Cash, Precious Metals Entering The European Union

Regular readers of Offshore Safe Deposit Boxes know that I’ve blogged before about transporting cash (March 19, 2014) and precious metals (March 20, 2014) outside the U.S. for the purpose of placing/acquiring assets in/for an offshore safe deposit box. I last discussed this subject in March 2015, where I pointed out a piece by Andrew Henderson over on the Nomad Capitalist website regarding currency reporting requirements for Australia, China, the European Union, India, Mexico, Switzerland, Thailand, United Kingdom, and the United States.

Speaking of the European Union, last week I came across an article on Reuters.com which may have repercussions for those looking to carry currency/precious metals into the E.U. for their safe deposit box. Francesco Guarascio reported on December 21:

The European Commission proposed tightening controls on cash and precious metals transfers from outside the EU on Wednesday, in a bid to shut down one route for funding of militant attacks on the continent.

The move follows Monday’s attack on a Christmas market in Berlin, where 12 people were killed as a truck plowed into a crowd. It is part of an EU “action plan against terrorist financing” unveiled after the bombings and shootings in Paris in November 2015.

Under the new proposals, customs officials in European Union states can step up checks on cash and prepaid payment cards sent by post or in freight shipments.

Authorities will also be able to seize cash or precious metals carried by suspect individuals entering the EU.

People carrying more than 10,000 euros ($10,400) in cash already have to declare this at customs when entering the EU. The new rules would allow authorities to seize money below that threshold “where there are suspicions of criminal activity,” the EU executive commission said in a note…

(Editor’s note: Bold added for emphasis)

Since cash/precious metals could be seized merely on “suspicions of criminal activity,” it’s a good bet persons originally intending to carry legally-obtained and owned currency and precious metals into the Eurpoean Union for their safe deposit box might think twice about transporting such assets in this manner.

Guarascio noted:

The proposals must be approved by EU states and the European Parliament to become law…

Stay tuned…

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

Source:

Guarascio, Francesco. “EU to boost border checks on cash, gold to tacke “terrorism financing.” Reuters.com. 21 Dec. 2016. (http://www.reuters.com/article/us-eu-security-financing-idUSKBN14A16N?il=0). 28 Dec. 2016.

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