Coronavirus Scares, Gold Investments and Reducing Tax Liabilities

The Coronavirus is wreaking havoc across securities markets around the world. Even now, the United States government is trying to clamp down on the panic created by the virus as the number of cases in the country increases by the day. The latest reports coming in from financial markets in the US report a dismal financial environment where even the biggest hotshots in the market lost billions of dollars in stocks over the past couple of days. As the market continues its downward trends because of the Coronavirus scare, things are really looking up for the people who invested in gold. 

This post fulfills two purposes—first, it will discuss why we should all consider moving our assets into gold and second, it will discuss where we should store our gold. Answering both these questions is of the utmost importance to the wealthy, considering the fact that they’re facing one of the biggest financial threats since the 2007 GFC.

Reasons to Invest in Gold

Gold has traditionally been considered a safe investment because of its relatively stable prices throughout history. People who are looking to make money didn’t invest in gold because there were little capital gains to be made from their investments—but these trends just might be changing. As global stock markets report cumulative losses of as high as $3 trillion, crude oil prices fall by 0.4% and people scramble to protect their portfolios, gold prices are shooting up consistently.

This brings us to two very important factors that should help make a case for gold investments:

  1. The capital gains from gold could be great.
  2. You need to diversify your risk by investing in gold considering the losses from stock markets.

The Recent Behavior of Gold Prices and Capital Gains

Ever since the US went into a trade war with China, global gold markets began to show promise—back in 2019 it reached highs of $1540.57 per ounce. These prices fluctuated for the better part of 2019 because of the back and forth between the US and China over a resolution to the trade war, but there’s a prominent upward trend in prices now. When the news of stock market downturns and the Coronavirus broke out, gold reached a seven-year high where investors moved their money out of conventional financial instruments. In the following few days, this spike tapered off but still maintained relatively high values. Over this time, returns on gold investments rose by 30% compared to the lacklustre returns of 15% from the S&P 500.  

Financial experts throughout the world maintain that the Coronavirus will continue slamming the markets. Plenty of these experts also cite the upcoming US presidential elections as one of the biggest threats to the profitability of investment portfolios because there’s no telling how new financial policies will impact the market. Amidst this uncertainty, gold prices will continue rising with significant downturns in the stock markets through the United States. Reports indicate that gold price trends will continue their upward movements to reach values as high as $1700 per ounce, which really can’t be helped at this moment.

Everything that I’ve said up till now only speaks of the endogenous impacts on the US market—however, we haven’t considered the possibility of the Chinese stock market crashing. As the Coronavirus spreads uncontrolled, the Chinese economy has come to a halt—signalling worries across global markets which only add to the chances of gold prices spiking. In these dynamics, investing in gold is definitely a great idea for everyone. 

Spreading Your Risk from Financial Instruments

As these trends continue, you could find yourself stuck in this vortex of falling stock values which will ultimately siphon off your wealth. Keeping your money tied to these conventional investments isn’t the best move at this moment—because the economic and financial future seems really uncertain. 

Moving at least some part of your investments into gold can really help cushion the blow if it comes and might help you come out as a winner through this tumultuous time. With the bleak reports coming out of global financial markets, everyone really needs to prepare for the worst.

Where Should You Store Your Gold?

Assuming that you’ve bought gold, the next question is—where can you store it? Ever since the introduction of FATCA and FBAR requirements, everyone’s scrambling to somehow minimize their tax liabilities that the IRS keeps shoving in their faces. These requirements are starting to catch up as traditional banking havens like Switzerland, Austria and Singapore have begun reporting American clients to the IRS

If you buy gold from any of the traditional banks in these countries, odds are that you’ll end up on the IRS’s radar sooner or later. Hiring a deposit box in these banks is sure to get you flagged for an audit. They don’t have much choice in the matter though—the IRS is threatening to take away 30% of their total business from the US if they don’t comply with FATCA regulations. 

Moving Your Gold into Fort Kobbe Depository

While banks and financial institutions are required to submit information to the IRS, offshore storage service providers don’t necessarily have to. The people at Fort Kobbe Depository will buy and sell your gold for you. These guys are a leading gold storage repository in Panama, which offers some of the highest levels of security for your gold and slowly replacing conventional banks as gold storage options.

Since bank depositories don’t necessarily qualify as financial institutions, Fort Kobbe Depository doesn’t necessarily have to report their clients to the IRS. They take on the responsibility of buying gold for you and even selling it—giving you a very convenient way into gold markets for greater financial stability.  

Considering the existing global economic climate, you should definitely consider investing in gold as an insurance policy against potential crashes. The Fort Kobbe Depository is probably your best shot at buying gold in a hurry, and for protection that perhaps even the safest banks in Switzerland can no longer provide.  


I hope you enjoyed reading this article: Coronavirus Scares, Gold Investments and Reducing Tax Liabilities. Fort Kobbe Depository in Panama really has an amazing facility. If you are in Panama and would like a personalized tour of the facility, please reach out to us HERE and we will be happy to make it happen, if you can’t make it to Panama in person, don’t worry, we can set up your accounts totally remotely. 

Here are a few articles on Gold and Fort Kobbe that will help you understand why Panama is the best place to bring your precious metals.

Tax Benefits of Having Your Precious Metal Investments in Panama

Gold Markets In Hong Kong – Turbulent Times Ahead

Documentation Requirements Crossing Borders With Gold & Cash

About The Author

Mikkel Thorup - Headshot - CircleMikkel Thorup is the host of The Expat Money Show podcast and Director of Content at Escape Artist. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. He has spent nearly 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran. His goal is to help people just 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.

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