Tag Archives: Simon Black

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: Marc Faber Warns ‘Have At Least Some Money In Precious Metals’ And Store It Overseas

Regular readers of Offshore Safe Deposit Boxes might know I’m also the editor of another blog that focuses on financial and personal safety matters- Survival And Prosperity. From that project earlier Monday:

Swiss-born investment advisor/money manager Marc Faber was just interviewed by Simon Black over at Sovereign Man, a provider of global financial intelligence and solutions. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report talked about the need of investors to be in precious metals, and where to store it. In the exchange that was uploaded to the Sovereign Man website on May 8, Dr. Faber told listeners:

The only currencies that I regard as significantly undervalued at the present time are the precious metals- silver, gold, platinum, palladium. And I would advise any investor to have at least some money in precious metals. The problem is, as a very informed reader of mine said, if precious metals really one day work out- in other words, gold goes to $10,000 an ounce- you can be sure that the government will take it away from you. That is a threat.

As you know in the world- since you are running an organization Sovereign Man- there is a move to curtail freedom, and there is a move to abolish paper money… If I were your listeners and I held gold, if paper money is abandoned or banished, about the last thing you want to hold is gold because it will be taken away as well. So you better close down your accounts at Citi, in my view. Put your money somewhere, anywhere in the world, except in U.S. banks…

Dr. Faber has repeatedly warned against storing physical precious metals in the United States- something I’ve noted on this blog before.

You can read the rest of that Survival And Prosperity post here.

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

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Sovereign Man: Americans Now Subject To ‘Very Early Form Of Capital Control’

How many readers of Offshore Safe Deposit Boxes have heard of the Sovereign Man website? Simon Black, an international investor, entrepreneur, “permanent traveler”, and self-described “free man” heads up that enterprise. I’ve been following his work regularly for just over a year now due to his insights on offshore asset protection. And a couple of days ago, I happened to read his March 20 article entitled, “Justice Department rolls out an early form of capital controls in America.”

(Editor’s note: CNBC’s short-but-sweet definition for a capital control- “a roadblock put in place by a government to restrict the flow of money out of or into its country”)

Responding to what was published on The Wall Street Journal website on March 16:

The U.S. Justice Department’s criminal head said banks may need to go beyond filing suspicious activity reports when they encounter a risky customer.

“The vast majority of financial institutions file suspicious activity reports when they suspect that an account is connected to nefarious activity,” said assistant attorney general Leslie Caldwell in a Monday speech, according to prepared remarks. “But, in appropriate cases, we encourage those institutions to consider whether to take more action: specifically, to alert law enforcement authorities about the problem.”…

The remarks indicate that banks may be expected to do more than just file SARs, a responsibility that itself can be expensive and time-consuming…

A tip-off from a bank about a suspicious customer could lead law enforcement to seize funds or start an investigation, Ms. Caldwell said.

(Editor’s note: Bold added for emphasis)

Black said in an accompanying podcast to the Sovereign Man piece:

But of course, here they are, putting these controls on physical cash. Now here’s a way when they say, “Hey! I want to divorce myself from the banking system. I want to take all my money out of the banking system and just hold physical cash”- now they want to call the cops on you. Which again, provides a huge disincentive. It’s intimidation, coercion, a significant amount of discouragement to keep people chained to the banking system. This is a form of capital controls. It might have not been intended that way, but the net effect is simply that. That now we have the Justice Department encouraging banks to go out and call the police on people who conduct suspicious activity which could be as little as a $5,000 cash withdrawal- that my own mother tried to do a couple of months ago at her bank and the bank told her, “No. Sorry. We don’t have the money.” This is now considered suspicious activity. That the Justice Department wants banks to call the police over. And it is just utterly obscene. This is the financial system of the Land Of The Free. It might not have been intended this way, but it is, in my view, a very early form of capital control because it does provide a huge disincentive to divorce yourself from the banking system. It provides a strong incentive for people to stay chained to the banking system…

Black recommended to listeners:

Consider holding cash and cash equivalents in non-banking options, like we talked about, with precious metals. This is something that makes a lot of sense. Holding some precious metals overseas in an offshore, non-bank private facility, private depository in a very safe, ultra-safe country like Singapore, for example, makes a lot of sense. Your gold and silver can never be confiscated by your home government. In many cases it is something that is not reportable if it’s structured properly. This is something that makes sense no matter what happens.

You can read Black’s article/access the podcast on the Sovereign Man website here. That discussion about capital controls starts at 24:17 .

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

Source:

Ensign, Rachel Louise. “Prosecutor: Banks Need to Do More Than File SARs.” Risk & Compliance Journal. 16 Mar. 2015. (http://blogs.wsj.com/riskandcompliance/2015/03/16/top-u-s-prosecutor-banks-need-to-do-more-than-file-sars/). 3 Apr. 2015.

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Peter Schiff, Axel Merk, And Simon Black Discuss Safe Gold Storage

No doubt gold is a favorite item to store in safe deposit boxes.

While in the past the use of these storage containers was more about protecting the precious metal from falling into the hands of thieves, these days they’re also being utilized out of growing fear the U.S. government may resort to the so-called “legal theft” of the yellow metal down the road to pay off its massive financial obligations.

Add to this the belief that positioning one’s gold overseas in a safe deposit box provides yet another line of defense against both types of thievery.

Recently, Peter Schiff- who correctly-called the U.S. housing bust and global economic crisis several years ago – sat down to chat with Axel Merk, President and Chief Investment Officer of Merk Investments. The topic? Gold. From their exchange posted on SchiffGold.com yesterday:

SCHIFF: Of course, some people, they like to have coins that are private and anonymous. I mean, if you own a gold coin and you have it and you dispose of it, if you give it to somebody or barter it with somebody, the transaction is done. People like to have some assets where it’s not all about paperwork and reporting and having to worry about all that. When you have at a brokerage account, you have ETFs, and you have all that, there’s all these statements, there’s all these transaction records…
MERK: Then, you get grey hair.
SCHIFF: Yeah. People just – You never know. It’s not that people want to do something illegal but people fear that the government may do something illegal in the future, may do something oppressive in the future. They might want to confiscate gold but they can’t confiscate it if they don’t know where you have it. If you have it in a brokerage account, they know where it is and they can take it. But if you have it buried somewhere or in a safe, they can’t get at it

(Editor’s note: Bold added for emphasis)

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.

Even more so when that U.S. financial crash I’ve been warning about since 2006 finally arrives.

So a well-developed asset protection strategy for one’s gold- holding the physical metal, offshoring it, and utilizing safe deposit boxes- is definitely worth exploring.

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

(Editor’s note: A qualified professional should be consulted regarding this subject. 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. The creator/editor of this site 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 contained herein.)

Sources:

“Gold Videocast: Exclusive Interview with Axel Merk (Video).” SchiffGold.com. 13 Nov. 2014. (http://schiffgold.com/blog/gold-videocast-axel-merk/). 14 Nov. 2014.

Black, Simon. “Three super safe and private facilities to store gold abroad.” Sovereign Man. 12 Nov. 2014. (http://www.sovereignman.com/finance/three-super-safe-and-private-facilities-to-store-gold-abroad-15557/). 14 Nov. 2014.

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