Tag Archives: geographical diversification

Sophisticated Investor Magazine Compares, Ranks Countries For Offshoring Precious Metals

Last post in that series concerning gold and storing it offshore.

I recently came across two articles that compared and ranked countries for offshoring gold and other precious metals on the website of Sophisticated Investor, “an online magazine dedicated to providing useful information to sophisticated and accredited investors worldwide.”

The first piece was penned by Wesley Crowder back on September 20, 2017, and is entitled “Precious Metals-Friendly Jurisdictions of the World”:

Though there might be other contenders for the coveted top spots on this list, these six countries are the go-to jurisdictions for storing your precious metals so safely that you do not lose any sleep at night…

The second article was also written by Crowder and is entitled “Comparison of the World’s Top Offshore Precious Metals Safe Havens.” Posted on October 4, 2017:

In this article, we compare and contrast the various seven top safe haven offshore precious metals storage locations of the world to see which is now the best place for you to secrete your physical gold and valuables…

Interesting reads, which you can find here and here, respectively, on the Sophisticated Investor site.

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 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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Nomad Capitalist’s ’10 Tips For Buying Gold In 2018′

Still on the topic of gold (often socked away in safe deposit boxes) today, back on November 13 Andrew Henderson penned an article on the Nomad Capitalist website entitled “10 Tips for Buying Gold in 2018.” I’ve mentioned Andrew and his company before on the blog, but for those readers not familiar with them, Henderson is the founder and managing partner of Hong Kong-headquartered Nomad Capitalist, billed as the “world’s leading offshore consulting firm.” Anyway, from the piece:

Not too long ago, my friend Claudio Grass – an expert in the gold business – shared the short version of his top ten tips for buying gold. Knowing the wealth of knowledge he possesses, I asked him to sit down for an interview so we could create the long version of that same list. His insights into the world of gold did not disappoint.

(Editor’s note: Bold added for emphasis)

Some particular “insights” that jumped out at me:

• “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.”
• According to Grass, two European nations qualify as safe jurisdictions. Joshua Rotbart, a “global expert on precious metals for investment” mentioned in the piece, added two more countries in Asia to the list.
• “Physical gold is the antidote to the current system. The current banking system is based on credit, paper, and computer digits. The crisis that we are expecting- the reason so many people are buying gold to protect themselves- will be a huge banking crisis. Therefore, if you decide to purchase physical gold, it’s only logical to store it outside of that banking system. Property rights in the banking system are of a temporary nature. Banks in the past have confiscated physical gold and cash, and there is always the possibility of a bail-in where all assets will undoubtedly be confiscated.”
• Echoing yesterday’s blog post about Jim Rickards and the information he received about gold being moved from banks to Swiss private vaults, Joshua Rotbart added:

Clients are moving their assets from bank vaults to privately held vaults. There are a few reasons for that:

Better access to their assets (they are no longer dependent on business hours, the goodwill of the banker etc.);
Increased distance from the reach of governments and regulators;
Better service; and
Better value for money.”

Henderson was right. Claudio’s insights into the world of gold did not disappoint. You can read the entire piece here on the Nomad Capitalist website.

Still more on the yellow metal later.

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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Silver Bullion Article ‘Why Choose A Private Offshore Vault’

It’s been some time since I last mentioned The Safe House (TSH), a Singapore private, non-bank vault with safe deposit boxes. The facility is a subsidiary of the award-winning bullion dealer Silver Bullion, and while on their site earlier today I stumbled upon an article from late August entitled “Why Choose A Private Offshore Vault.” Gregor Gregersen (founder/CEO of The Safe House and Silver Bullion) and Srdjan Seva (Business Development at Silver Bullion) wrote:

When choosing a place to buy and store gold and silver bullion, there are several aspects that need to be considered, especially for those who are new to storing their precious metals. Physical precious metals are almost always purchased for the purpose of wealth protection but how good is such ‘protection’ in a systemic crisis?

(Editor’s note: Bold added for emphasis)

Gregersen and Seva hammered home two important points regarding the above. The first being:

When purchasing precious metals with a plan to physically own and store in a vault, it is important to make sure that buyers are the legal title owners of the stored bullion rather than just creditors being owed bullion.

(Editor’s note: Bold added for emphasis)

Second, and no less important:

Diversifying the country risk by storing precious metals offshore in a safe jurisdiction is one the most important aspects of wealth protection against seizures, nationalizations or other forms of confiscations in the home country.

(Editor’s note: Bold added for emphasis)

For Gregersen and Seva, a “safe jurisdiction” can be defined as having:

A clear rule of law especially when it comes to the respect of private property rights, has enough economic and military power to defend its sovereignty and which is strong enough to actually enforce its laws.

(Editor’s note: Bold added for emphasis)

Based on this criteria for a “safe jurisdiction,” I suspect a number of countries with safe deposit box facilities outside the banking system might fall short.

An informative and insightful read, which can be found here on the Silver Bullion website. For more information about The Safe House, visit their website here.

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

(Editor’s note: The mention of a particular 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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‘Paradise Papers’ And Offshore Asset Protection Going Forward

Some time ago, an overseas safe deposit box facility contacted me about removing them from that list of offshore private vaults I maintain on this blog’s sister site.

The concern was over the use of the word “offshore” with the website- and the negative connotation associated with it these days.

I sympathized with the vault operator and happily complied with the request.

I was already well-acquainted with the demonization of pretty much anything having “offshore” attached to it while creating/naming the Offshore Safe Deposit Boxes blog and Offshore Private Vaults website four years ago. However, I was comfortable with the use of the word with these projects since the secured storage of lawfully-obtained/owned, privately-held belongings outside the United States (plenty of legitimate reasons to do so, and perfectly legal per Uncle Sam) is different from offshore banking (no financial transactions are being conducted).

Offshore finance is under attack today as the so-called “Paradise Papers”– “a huge leak of financial documents that throw light on the top end of the world of offshore finance” as BBC News calls it- makes headlines in the legacy media.

But note what the BBC also said concerning this material. Tucked away in a “Paradise Papers reporting team” web article yesterday:

The vast majority of the transactions involve no legal wrongdoing.

(Editor’s note: Bold added for emphasis)

And there’s this “pop-up” accompanying a piece by the International Consortium of Investigative Journalists (ICIJ), reportedly overseeing the investigation:

Please read the statement below before searching. There are legitimate uses for offshore companies and trusts. We do not intend to suggest or imply that any people, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or otherwise acted improperly.

(Editor’s note: Bold added for emphasis)

While the “Paradise Papers” may result in additional vilification of anything “offshore” among consumers of mainstream media, likely users of offshore products could shrug it off (while keeping in mind the importance of following the law). It’s conceivable this group ends up dismissing the matter after they contemplate/investigate potential agendas and/or influences.

I leave readers with this, which I posted on April 5, 2016, with the release of the “Panama Papers”:

Even though offshore corporate structures, offshore banking, and the like aren’t exactly my forte and not really areas this blog and sister site Offshore Private Vaults focus on, I feel I too should emphasize “offshore” doesn’t necessarily mean “criminal.”

The secured storage of legally-obtained and owned assets in bank and private, non-bank safe deposit boxes located outside the United States is perfectly within the law. And as regular readers of this blog know, Americans do it for a variety of reasons, including:

• Securing and having convenient access to valuables while residing, studying, travelling, and working overseas
• Geographically-diversifying wealth per the advice of financial/investment advisers
• “Prepping” for potential nationwide emergencies/disasters, where domestic access to privately-owned assets becomes impossible
• Protecting assets should “Uncle Sam” ever go rogue and join the growing wealth confiscation movement across the globe

While both the blog and website are aimed at the law-abiding, I still go so far as to communicate the following to visitors:

“Offshore Safe Deposit Boxes strongly condemns any attempted use of these overseas storage containers for illegal purposes.”

“Offshore Private Vaults strongly condemns any attempted use of these private vaulting facilities and their safe deposit boxes/lockers for illegal purposes.”

As it concerns U.S. government reporting requirements, just last week I blogged:

If “Uncle Sam” requires precious metals in an offshore bank safe deposit box to be reported, then by all means, you should do it.

And should taxes be involved, the way I see it, it’s like The Good Book says:

Render unto Caesar the things that are Caesar’s…

In conclusion, who knows how far the fallout from the “Panama Papers” will extend. But it would be a real shame if offshore asset protection , and in particular the tool of the offshore safe deposit box, gets thrown under the bus from this event despite it being beneficial and legal for Americans to pursue.

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.)

Sources:

Paradise Papers Reporting Team. “Paradise Papers: Tax haven secrets of ultra-rich exposed.” BBC News. 6 Nov. 2017. (http://www.bbc.com/news/uk-41876942?ocid=socialflow_twitter&ns_mchannel=social&ns_campaign=bbcnews&ns_source=twitter). 7 Nov. 2017.

“Offshore Trove Exposes Trump-Russia Links And Piggy Banks Of The Wealthiest 1 Percent.” International Consortium of Investigative Journalists. 5 Nov. 2017. (https://www.icij.org/investigations/paradise-papers/paradise-papers-exposes-donald-trump-russia-links-and-piggy-banks-of-the-wealthiest-1-percent/). 7 Nov. 2017.

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Related Reading: Coin Update Interview Of Sharps Pixley CEO Ross Norman

Last week I mentioned a WealthBriefing.com article that featured the new Sharps Pixley showroom/safe deposit box service in London, England. The other day I came across another piece about the operation on the Coin Update website (“Daily Coin Collecting News”). Michael Alexander recently interviewed Sharps Pixley CEO Ross Norman “to learn about the business’s new efforts to bring the benefits of bullion ownership to the ordinary consumer without involving an investment broker or paying out needless commissions.” During the discussion, the topic of the recently-launched safe deposit box service came up. From their exchange:

MA: Speaking of quantity, one of the services Sharps Pixley offers at this location is a depository for personal bullion holdings. How does this work? Are my holdings my own and in the form that I’ve purchased, or are they part of an overall greater deposit of bullion?
RN: We have both. You can rent a safe deposit box which is yours; it’s £250 a year for a small box that can hold up to £1 million in kilo-bars. Or we also offer vaulting for the larger investors which can include placing your holdings in custody in our vault. Or you can place your holdings at our offices in Switzerland, Germany, or even Singapore, so it is a myth that gold is expensive to store.
MA: An investor would be able to purchase from your offices and have their holdings in another country or take delivery outside the UK?
RN: Absolutely, and this isn’t “offshore banking,” this service simply offers the investor the option of holding or keeping an asset where they feel most comfortable. Our concept is that a safe haven isn’t just what you keep, but where you keep your holdings. In that regard, you have a choice in using our international offices, so you choose a location where you feel your investment would be safest.
Our new safe deposit box facility is rated as Class 10, which is the highest one can obtain. Alternatively, we can arrange to transfer your metal holdings to another overseas location in a matter of minutes by swapping bars in one location with another, saving you any shipping charges. All that changes are your bar numbers…

As I’ve mentioned before on this blog, Sharps Pixley’s parent company is Degussa, which also offers non-bank safe deposit box services (under the Degussa name) in Germany (Berlin, Cologne, Hamburg, Hanover, Munich, Nuremburg, and Stuttgart), Singapore, Spain (Madrid), and Switzerland (Geneva and Zurich). When Norman mentioned the transfer of holdings “to another overseas location,” I’m guessing he was referring to one (if not all) of these facilities.

You can read the article in its entirety here on the Coin Update website. For more information about Sharps Pixley, 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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Martin Armstrong: ‘Anything Of Value That Is Stored In A Safe-Deposit Box Is Now Considered Money Laundering’

Martin Armstrong, economist at Armstrong Economics and the subject of the 2014 documentary The Forecaster, 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)?

Armstrong didn’t elaborate in his June 3 post, but back on March 29 I discussed how he thinks government will deal with precious metals. From that post:

On March 14, Armstrong talked more on this subject. He blogged:

Government will make transactions in gold or silver illegal and equivalent to money laundering. These people are not about to let anything circumvent their dreams…

The likelihood that you will be able to travel with gold is about zero. The likelihood that you will be able to go to the local grocery store and buy food with silver or gold coins is also zero. The more probable outcome is that this will provide a hedge against government to make the transition to the next monetary system. These people are fighting for dominance over society. Do you really think it will be that easy that everyone will be using gold and silver coins? They will not go down without a fight and the first blood draw will be on our side — not theirs.

(Editor’s note: Bold added for emphasis)

I added:

If events unfold like Mr. Armstrong predicts they will, geographical diversification of precious metals in the physical form- particularly gold- in an offshore safe deposit box could prove to be a wise financial decision.

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. “Hunt for Taxes: Safe-Deposit Boxes Under Attack.” ArmstrongEconomics.com. 3 June 2016. (https://www.armstrongeconomics.com/world-news/taxes/safe-deposit-boxes-under-attack-hunting-for-money/). 6 June 2016.

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