Tag Archives: Executive Order 6102

Casey Research Articles About Gold Coins For Storing Wealth Offshore

Continuing on the subject of gold and storing it offshore, I’d like to bring up two articles I recently read on the Casey Research website. Casey Research was founded by Doug Casey, an American author, publisher, and investor, who also serves as chairman of the Delray Beach, Florida-based investment research firm. Regular readers know I’ve mentioned Casey before on this blog.

Back on May 18, 2017, an article entitled “Doug Casey’s Two Top Ways to Store Wealth Abroad” appeared on CaseyResearch.com. In it, International Man Senior Editor Nick Giambruno (who I’ve also mentioned in the past) asked Casey, “What forms of savings are good candidates to take abroad?” He replied:

Everybody should own gold coins because they are money in its most basic form-something that a lot of people have forgotten. Gold is the only financial asset that’s not simultaneously somebody else’s liability. And 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.

(Editor’s note: Bold added for emphasis)

“It gives you another degree of insulation should the United States decide that you shouldn’t own it.”

I would add “domestically” to the end of that statement.

More recently, a piece entitled “The Ultimate 4-Step ‘Freedom Insurance’ Plan” appeared on the Casey Research website. In the interview of Nick Giambruno by Chris Lowe, editor of Bonner & Partners’ Inner Circle, gold coins were mentioned again as “the easiest way to lessen the political risk to your savings.” From the October 3 exchange:

LOWE: What form of gold are we talking about- bullion, gold coins, ETFs?
GIAMBRUNO: Physical gold is your best option. Then you don’t have any counterparty risk. Having some gold in your possession in your home country is good. But having another stash in a foreign country is even better. You can either store it at a foreign property. Or you can store it in a non-bank safe deposit box.
LOWE: Why not a safe deposit box in a bank?
GIAMBRUNO: When President Roosevelt criminalized the possession of gold in 1933, federal agents went through bank safe deposit boxes searching for undeclared gold. Today, bank safe deposit boxes fall under the regulations and jurisdictions of banks. If there’s a bank holiday, like the one in Greece… or a bail-in like the one in Cyprus… or any event that shuts down or otherwise affects the banking industry, your bank safe deposit box is at risk. That’s not the case with non-bank vaulting and storage companies.

(Editor’s note: Bold added for emphasis)

The subject of transporting gold coins out of the United States came up in the interview. From the exchange:

LOWE: What about gold coins? Can you just hop on a plane to Colombia or Argentina with gold coins in your pocket?
GIAMBRUNO: Well, it’s a gray area. And because it’s a gray area, I wouldn’t recommend taking more than a couple of gold coins with you when traveling abroad. The average TSA agent has probably never seen a gold coin in his life. He probably wouldn’t know what it was if he found one. But, if he thought it was something suspicious, he would confiscate it and let the courts sort it out. And that’s no fun. You’d have to go to court to get your metal back, and that would involve costly legal fees. I’ve taken gold coins across numerous borders, and I haven’t had a problem. But I’ve heard horror stories. And from personal experience, I can tell you that gold coins set off the X-ray machine. So there’s a decent chance the TSA folks- or their foreign counterparts- will find them. And remember, if you take more than $10,000 of “cash” in or out of the US, you need to file a “Report of International Transportation of Currency and Monetary Instruments” with FinCEN, a branch of the Treasury Department that deals with financial “crimes.”

Giambruno ultimately concluded:

You’re better off buying coins when you’re already in your destination country. Taking gold coins with you is just too risky.

(Editor’s note: Bold added for emphasis)

Back on March 20, 2014, I blogged about transporting precious metals out of the United States to place in an overseas safe deposit box. In that post, I pointed out offshore expert Mark Nestmann discussed the process in-depth on the Financial Sense website in September 2012. His thoughts on the matter?

While it’s perfectly legal to move precious metals in or out of the United States, you must understand the reporting rules before you begin. Otherwise, your risk confiscation of your metals along with possible civil and criminal sanctions. You’re much better off paying an armored security service such as Brinks or ViaMat to transport the metals for you.

(Editor’s note: Bold added for emphasis)

You can read the two articles on the Casey Research site here and here, respectively.

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

(Editor’s note: The mention of a particular individual/business 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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Mark Nestmann: Offshore Your Physical Gold

Yesterday I brought up the recent Nomad Capitalist article “10 Tips for Buying Gold in 2018” in which gold expert Claudio Grass said:

As a general rule, if you have over $50,000 to invest in gold, store it in a safe jurisdiction. For anything less than that, keep it nearby.

And according to Grass, “safe jurisdictions” meant two European countries.

Offshore expert Mark Nestmann also talked about storing physical gold locally and offshore in a July 9 piece on the International Living website. In “Why You Should Store Gold Overseas to Protect Your Money,” Nestmann informed readers:

You may already have gold safely stored at home or in a domestic vault. While that’s a smart plan, there is an even safer way to store your gold: Keep it overseas.

If all your wealth is in the U.S., it’s vulnerable. If you are sued in the U.S. (a one-in-three risk for U.S. citizens) and lose, a creditor can foreclose on your U.S. assets, including your domestic gold. Gold stored overseas, however, is much more difficult for creditors to seize.

Second, there’s political risk. In 1933, Franklin Delano Roosevelt forced all gold-owners to turn their holdings over to the government. I don’t think a recurrence is likely, as gold is no longer the standard to which we peg our money. But moving your gold overseas gives you peace of mind.

Of course, it’s possible that the country you move your gold to could enforce a U.S. general gold confiscation order. But that’s never happened before. And in countries like Austria, Switzerland, and Singapore, doing so would violate their own ultraprotective wealth preservation laws.

The head of The Nestmann Group went on to talk about the three options available to Americans for keeping their gold overseas, one of which is “direct storage” and “a safe deposit box at a private vault.”

A short but informative primer on offshore gold storage, which you can read here on the International Living site.

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

(Editor’s note: The mention of a particular individual/business 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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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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The Safe House In Singapore

More safe deposit box news out of Singapore. The Middle Ground, a news site covering that part of the world, ran an article back on March 31 about award-winning bullion dealer Silver Bullion and its subsidiary- The Safe House (TSH), a Singapore private, non-bank vault. Ryan Ong wrote:

Silver Bullion is a company that owns a 630 tonne capacity vault, somewhere in the Chai Chee area. Big deal, right? Banks have these all over the place. But there’s something special about this one.

Silver Bullion doesn’t just store precious metals like a typical bank deposit (with all the relevant insurance), although that alone would be useful right now – the wait list for deposit boxes in banks has become ridiculous.

(Little known fact: our banks hate deposit boxes, because it costs around $1 million to build a vault with 3,000 boxes. With annual fees under $300 per annum, it’s not very profitable.)

Silver Bullion is also different because it comes with a P2P loan system…

Ong discussed the Silver Bullion peer-to-peer lending program, but talked a good deal about The Safe House facility as well. He mentioned security, precious metals testing, and the vaults-within-a-vault setup- “600 metric tons of segregate and reserved silver storage capacity in 800 kg pallet cages” and “25+ metric tons of segregate and reserved gold storage in a UL Class 2 gold vault,” per TSH’s website.

From their brochure detailing the safe deposit box service:

Large Class I boxes are available for bulk storage and smaller Class II vault boxes for high value items such as gold and platinum.

And from an e-mail exchange I had with The Safe House all the way back in November 2014:

Customers are allowed to store items other than bullion in our safe deposited boxes provided that customers adhere to the weight limits specified for each type of box and not store any prohibited items.

Ong added:

Silver Bullion’s founder, Mr Gregor Gregersen, said that at present most of the depositors were foreigners.

Singapore is a favourite place to park gold, due to fears of nationalisation. This is the fear that, during times of financial crisis, a government may seize assets such as private gold and silver reserves.

This is a known possibility in the United States, for example, where some remember executive order 6102. This happened in 1933, when the United States seized gold assets and paid a (low for the time) price for the confiscated gold.

Singapore is regarded as a safe haven, because it places gold and silver assets outside the reach of other governments. It is also politically stable with a low crime rate…

You can read Ong’s entire piece on The Middle Ground website here. And for more information about The Safe House, head on over to their site here.

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

(Editor’s note: The mention of entities marketing themselves as private vaults outside the U.S. offering safe deposit boxes/lockers at a minimum 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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Executive Order 6102 And Offshore Gold

Readers may recall I recently mentioned a 1933 gold confiscation order by U.S. President Franklin D. Roosevelt. From this blog’s sister website- Offshore Private Vaults- under “Why Offshore Private Vaults?”:

Wealth preservation expert Mark Nestmann wrote back in February 2008:

One of the most important precautions is not to keep precious metals in a U.S. safety deposit box. President Roosevelt ordered all safety deposit boxes sealed when he issued his March 9, 1933, gold confiscation order. My grandparents couldn’t retrieve their holdings from their safety deposit box until government thugs had rifled through it.

(Editor’s note: Bold added for emphasis)

I’d like to talk about Executive Order 6102 a little bit more tonight- particularly, the location of the gold.

Published in its entirety on the website of The American Presidency Project- established in 1999 as a collaboration between John T. Woolley and Gerhard Peters at the University of California, Santa Barbara- Executive Order 6102 begins with:

By virtue of the authority vested in me by Section 5 (b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled “An Act to provide relief in the existing national emergency in banking, and for other purposes,” in which amendatory Act Congress declared that a serious emergency exists, I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section do hereby prohibit the hoarding of gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations

(Editor’s note: Bold added for emphasis)

Note that part that says “within the continental United States.”

Anyone know of any incident back then where gold legally-owned by Americans and stored overseas was confiscated?

I couldn’t find any searching the Internet.

In the event another gold confiscation ever takes place in the United States, gold stored offshore may avoid being targeted should the accompanying executive order be crafted along the same lines of the April 5, 1933, decree.

Of course, the wording of an executive order heralding in a new gold confiscation may simply do away with that reference to the “continental United States.”

Still, there are some who consider the positioning of gold overseas as another possible level of protection against another confiscation. Consider what Nestmann also wrote in that February 2008 piece:

Keep some gold and silver bullion outside the United States, preferably in a safety deposit box or a private vault. That way, if a second confiscation occurs, your holdings won’t be immediately affected…

You can read the entire text of Executive Order 6102 on the website of The American Presidency Project here.

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

Source:

Nestmann, Mark. “Keep Your Hands off My Gold! [Part II].” The Sovereign Investor. 5 Feb. 2008. (https://sovereign-investor.com/2008/02/05/keep-your-hands-off-my-gold-part-ii/). 10 Mar. 2014.

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The Threat Of Wealth Confiscation

Yesterday, I made a brief mention of wealth confiscation. Referring to investment advisor/fund manager Marc Faber, I blogged:

The man who became known for advising clients to get out of the U.S. stock market one week before the October 1987 crash went on to warn Bloomberg TV viewers on September 14, 2012:

So, you ought to own some gold, but don’t store it in the U.S. because the Fed will take it away from you one day.

Is wealth confiscation really something Americans should be concerned about? Well, consider what I wrote the other day on the sister website of this blog- Offshore Private Vaults. Under “Why Offshore Private Vaults?”:

Critics argue that government and the banks don’t pose a threat to personal assets. However, recent events suggest concerns about wealth confiscation by these entities aren’t unfounded:

• Argentina, October 2008, private pension funds nationalize
• Ireland, March 2009, national pension fund assets used to help pay for EU/IMF bailout
• France, November 2010, national pension fund assets used to pay for welfare system debts
• Hungary, November 2010, private pension funds nationalized
• Bulgaria, January 2011, private pension funds partially-nationalized
• Cyprus, March 2013, banking system “bailed-in”
• International Monetary Fund, October 2013, talk of a “capital levy” in IMF’s October Fiscal Monitor Report, a “one-time tax on private wealth” possibly at “a tax rate of about 10 percent on households with positive net worth”
• European Union, December 2013, agreement by EU finance ministers to implement Cyprus-style “bail-ins” in the event of future banking crises

Considering the steady devolution of the United States as an economic superpower and the federal government’s refusal to significantly curtail borrowing and spending, no one can say for sure that personal wealth won’t be confiscated in some future major financial crisis.

In fact, such an event already took place in America. Wealth preservation expert Mark Nestmann wrote back in February 2008:

One of the most important precautions is not to keep precious metals in a U.S. safety deposit box. President Roosevelt ordered all safety deposit boxes sealed when he issued his March 9, 1933, gold confiscation order. My grandparents couldn’t retrieve their holdings from their safety deposit box until government thugs had rifled through it.

I went on to talk about U.S. states also making a grab for the contents of bank safe deposit boxes.

So is wealth confiscation something Americans should be concerned about? As I’ve shown, it’s something that took place here in the last century and has been happening in other parts of the world, particularly in the wake of the 2008 global financial crisis.

But as far as I know, contents in bank and private safe deposit boxes have so far gone untouched during this most recent bout of confiscation going on overseas.

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

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