Tag Archives: gold confiscation

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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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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Sovereign Man Simon Black: ‘Have Some Non-Reportable Assets’

Regular readers of Offshore Safe Deposit Boxes know I’ve brought up Simon Black of Sovereign Man website-fame occasionally. Black is an international investor, entrepreneur, “permanent traveler”, and self-described “free man.” I’ve been following his work for some years now for his insights on offshore asset protection. And yesterday, a post entitled “100 billion reasons to have non-reportable assets” appeared on his blog. Those “100 billion reasons” referred to a low-end estimate of the billions of dollars Black claims the cash-strapped government of Saudi Arabia will seize in their ongoing anti-corruption purge. He surmised:

Saudi Arabia needs cash. Now.

So over the past few weeks they’ve found their source: theft.

Under the guise of a ‘corruption crackdown’, the government of Saudi Arabia has arrested hundreds of its wealthiest, most prominent citizens, and frozen more than 1700 bank accounts.

Black paralleled the Saudi situation with the United States. He added:

This is really no different than Civil Asset Forfeiture in the Land of the Free, the legal framework where countless federal, state, and local agencies have the authority to seize and freeze every asset you own without even so much as charging you with a crime.

(They can even take your kids away!)

I think there’s a pretty big lesson here: desperate governments almost invariably resort to stealing from their own citizens.

And that’s why one step in a Plan B is to have some non-reportable assets.

(Editor’s note: Bold added for emphasis)

One of those “assets that you’re not legally required to tell them about” mentioned was precious metals.

Black has discussed physical gold- and offshoring it- on the Sovereign Man website before. A little over three years ago I blogged:

Simon Black of Sovereign Man-fame talked about that additional line of defense with storing physical gold overseas. He wrote Wednesday on his site:

I’ve long been an advocate of moving a portion of one’s savings overseas.

After all, what’s the sense of leaving 100% of your assets within a country ruled by a morally and financially bankrupt government that treats you like a dairy cow?

Moving some of your gold abroad to a jurisdiction that prides itself on maintaining a high level of financial security and privacy protects you against legal thievery your government might commit against you.

Sure, it’s a risk that might never come to fruition. But you won’t be worse off for having stashed some of your gold away privately in a safe, stable jurisdiction…

(Editor’s note: Bold added for emphasis)

“What’s the sense of leaving 100% of your assets within a country ruled by a morally and financially bankrupt government that treats you like a dairy cow?”

Some would argue this applies to good old Uncle Sam. However, while I believe the American Republic is in real danger of becoming “morally and financially bankrupt”- we’re not quite there yet.

That being said, if we continue down the same path we’ve been on for a while now, that gold of yours could look pretty tempting to the Feds.

All-in-all, another fine piece by Simon Black, which you can read in its entirety 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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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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Martin Armstrong: Old Gold Coins Better Than Bullion Against Confiscation

In two January blog posts on his company’s website, economist Martin Armstrong shared what he thinks is the most effective way to possess and retain physical gold in the face of government confiscation.

On January 10, Armstrong advised his blog readers:

As we move forward, it will be best to hold assets out of banks and out of currency. They can even declare gold a criminal act to possess, which is why I suggest genuine old coins rather than bullion. Just another layer of protection…

(Editor’s note: Bold added for emphasis)

On January 16, the head of Armstrong Economics elaborated:

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. I believe Trump would not go along with that move…

(Editor’s note: Bold added for emphasis)

I can’t fault Mr. Armstrong’s insistence on holding assets “out of banks and out of currency” considering recent events of wealth confiscation (as catalogued on this blog’s sister site- Offshore Private Vaults) being carried out by governments and banks around the world.

Neither can I argue with the economist’s recommendation of “old coins” versus bullion as it concerns potential gold confiscation. “Just another layer of protection” might be a good thing considering the uncertain times we live in today.

That being said, proponents of bullion contend numismatic coins mean “less bang for the buck” (less gold for your money) and there’s no guarantee this form of the yellow metal will be exempted from a future confiscation.

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.)

Sources:

Armstrong, Martin. “Monetary Devaluations & Cancellations” Armstrong Economics Blog. 10 Jan. 2017. (https://www.armstrongeconomics.com/history/ancient-economies/monetary-devaluations-cancellations/). 17 Jan. 2017.

Armstrong, Martin. “Gold Bullion v Coins.” Armstrong Economics Blog. 16 Jan. 2017. (https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/gold-bullion-v-coins/). 17 Jan. 2017.

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Martin Armstrong On Proposal To Seize ‘Suspicious’ Gold Entering European Union

Last Wednesday, I wrote about a recent Reuters.com article which reported:

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…

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)

I blogged about this proposal due to the ramifications it could have for those intending to carry legally-obtained and owned currency and precious metals into the Eurpoean Union for their safe deposit box.

Now, regular readers of Offshore Safe Deposit Boxes may remember my December 10 post mentioning economist Martin Armstrong and his belief there is a “War on Gold” being waged by revenue-starved governments. I wrote:

Yesterday, economist Martin Armstrong published a blog post on his company’s website entitled “Gold Headed Lower Under $1,000 into the Abyss.” The subject of the 2014 documentary The Forecaster claimed “India is moving now to confiscate gold after going after the cash” and talked about how this confiscation might be carried out. Armstrong added the following:

This is the problem I have been warning about with gold. It is losing it safe haven status for it is getting to the point you cannot travel with it, keep it in a safe deposit box, or show gold with jewelry

(Editor’s note: Bold added for emphasis)

While that statement about not being able to “keep it in a safe deposit box” was met with “food for thought” from yours truly, Armstrong’s other claim about “it is getting to the point you cannot travel with it” warrants some “chewing” after that European Commission proposal.

As does this from Armstrong in a December 28 post on his company’s site:

The assault on gold is by no means casual. The hunt for money and the global effort to eliminate cash to be able to increase taxation is also targeting gold. All the sales pitches that gold will survive have ignored the fact that government is well aware of gold and people using it to store wealth

Gold is rapidly becoming the target of confiscation in Europe following the Berlin Christmas attack…

(Editor’s note: Bold added for emphasis)

Hmm. Lots to digest here. And not all of it “agreeable”- which I’ll expand upon later.

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. “Confiscating Gold.” Armstrong Economics Blog. 28 Dec. 2016. (https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/confiscating-gold-3/). 3 Jan. 2017.

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