Imagine you had the foresight to buy a sizable amount of gold in a timely manner so that you could protect your finances from an economic crisis that the world might face – then imagine it’s taken away from you by the US government. You will not only lose the buffer you created for yourself but a significant part of your overall net worth without any chance of reimbursement. It is no secret they do not respect private property laws.
While it may sound absurd, gold confiscation is a real problem in the US and it has happened in the past.
When a financial crisis is looming over the head of a country, the government needs to stabilize the situation. They may try to grab the money people have in order to be able to do that. When they are confiscating something of financial value, the government never goes for bonds, stocks or other securities – these instruments can be wiped out from currency devaluation (that they will most likely manufacture). Tough times see the governments “request” its citizens to hand over their gold. This is an asset the US Government or any government for that matter has very little control over, and that is why they fear it.
In 1933, President Franklin D. Roosevelt signed Executive Order 6102, which forbade the hoarding of gold coin, gold bullion and gold certificates within the continental United States. At that time, gold used to be a part of the monetary system itself and that is the reason why people believe gold should not be confiscated today.
The Potential Financial Collapse And What It Means For Your Gold
While it is true that we no longer have a monetary system based on the gold standard, if a severe financial crisis occurs, all possible solutions will be considered to address this situation. Gold happens to be one source that has intrinsic value in and of itself.
Currently, there are three negative supply shocks that may trigger a global recession by 2020:
- Political factors like the China-America trade and currency war that might escalate as things move forward.
- Concerns over the gold war between the United States and China regarding technology – both vying for superiority and dominance in the industries of the future.
- Oil supplies all over the world. While oil prices have recently fallen, the prevailing geopolitical situation, along with the China-US feud, is likely to bring us to the brink of a financial collapse again.
With the underlying economic conditions pointing towards a global recession, your gold storage is at risk of being compromised. This time around, it’s predicted that things will be much worse than the 2008 financial crisis. If worse comes to worst, the US government may come after your assets, specifically gold.
Protecting Gold From The US Government
There is one way you can protect your gold from the US government in case they decide to confiscate it: Move it to another country.
Of course, you cannot store your gold overseas in just any country. Each country has its own set of laws and regulations regarding gold storage.
Many countries have enforced specific asset protection laws, which enable them to store valuable assets like gold and silver safely. Today, we are going to discuss the 5 countries where you can move your gold to so the US government cannot confiscate it.
Austria is a country in the EU that values bank secrecy and financial privacy. It is one of the only places in the world where you can store your assets anonymously.
There are several different vaults in the country, including Das Safe, which I have visited in Vienna, that allows you to rent a safety deposit box and store as much gold as you want there.
If you must have your gold stored in the EU then Austria is an excellent option, it is easily accessed and centrally located and the country is stunningly beautiful.
However, the fact that Austria is changing its laws one by one and making it more difficult to keep your metals there anonymously is very worrying.
Some of the newest and best vaults in the world exist in Singapore. The island nation offers the benefits of independence and security. When it comes to innovation in the gold storage industry, Singapore really does a fantastic job.
Singapore is in favour of gold transactions, unlike its European counterparts. In fact, because of the growing storage industry, there are plenty of companies in Singapore that are now loaning money against gold. If you have gold, you can borrow money against it in Singapore.
Buying physical gold in Singapore is safe only if you purchase from reputable sources to avoid unfortunate gold scams, there are stories of fake gold coming in from China so make sure you are careful what you buy.
For a large number of people, Switzerland is their go-to choice for storing financial assets, beyond their country’s borders. It is one of the most popular places for offshore asset storage.
Not only is Switzerland home to the world’s largest gold reserves per capita, but it also does not have any currency restrictions. Moreover, millions of services and facilities are available in the country for the storage of metals.
That being said, many people seem to be moving their money out of Switzerland and storing it elsewhere since it does not favour private transactions. The country prefers keeping your money under management, which might not suit your financial plans.
Switzerland’s neighbouring principality, Liechtenstein, also has a longstanding reputation of being one of the best places for the storage of valuables and assets. One of the main reasons for this is that protecting foreign assets is a core part of the country’s economic survival. In fact, the 6th smallest country in the world has been doing this for the past 300 years.
However, asset storage in Liechtenstein does not come cheap, which makes it an impractical option to consider for individuals looking to store private gold.
Possibly the best gold storage option for you right now has to be Panama. Panama is a business-friendly country that offers excellent tax incentives which are hard to find anywhere else. The Central American country is a small nation, but it is geographically sound and enjoys both economic and political stability, unlike some of the other countries in this region.
Panama extends the same rights to both Panamanian natives and foreign investors looking to store their precious metals in the country. Also, Panama ranks alongside the likes of Dubai and Switzerland in terms of privacy, security and stability, thereby making it the perfect destination for offshore gold storage.
Furthermore, the country has rigorous privacy laws and the best facilities for gold storage, such as the Fort Kobbe Depository that exist in a free trade zone in Panama. You can easily bring your gold into the country through a private airport without having to divulge information about the owner.
If you want to ensure that your gold is stored safely outside the US and in a space that is protected from any political or central bank interference, then Fort Kobbe in Panama might just be your best bet.
In times where the economic depression is looming overhead, it is a smart idea to move your gold, silver and other precious assets somewhere safe and stable overseas. I certainly know I am.
About The Author
His goal is to help Expats like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. For more information on his legal (but creative) tax strategies for Expats watch this free video.