Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Best Strategies To Survive A Financial Crisis In Your Home Country

Commodities / Gold and Silver 2017 Apr 13, 2017 - 03:02 PM GMT

By: HAA

Commodities

Stephen McBride : Praised be the 17th-century Italian wisecrack who noted that you shouldn’t “keep all your eggs in one basket.” It’s still true today and just as applicable to life as to investing.

If you live and work in the US, bank in the US, invest with a US brokerage, and hold your savings in US dollars—your eggs could use some diversification.


A prudent investor would never put all his money into just one company—no matter how healthy the firm’s balance sheet. So why would anyone put it all in one country, then? If you have all your assets in one place, you are taking a great deal of risk.

Take, for example, the German hyperinflation of 1922–1923. Germans who held all their assets in the banks of the Weimar Republic lost everything to hyperinflation. Those who had savings or property across the border in France escaped total wipeout.

One doesn’t have to travel to Germany to find examples of 20th-century wealth transfer. In 1933, Franklin D. Roosevelt used his quill to sign away the right of Americans to “hoard” gold.

The executive order required citizens to trade in any gold they owned in exchange for $20.67 in paper dollars. Eight months later, Congress fixed the price of gold at $35 an ounce. As the United States was on the gold standard at the time, this move eroded the value of Americans’ dollars by 69%—a double whammy.

If history has taught us anything, it’s that when governments get desperate, they take desperate measures.

When the next downturn hits in the US, how will the over-indebted federal government react? Bank deposits, retirement accounts—they may all be fair game.

If you have all your assets in the US, you are taking on a great deal of political risk. In order to mitigate this, you must diversify your assets across many countries.

So where does one start?

Action #1: Open a Foreign Bank Account

Most people think opening a foreign bank account is a good option, but it’s actually not. In fact, for Americans, the option isn’t even on the table these days.

That’s because Uncle Sam has made reporting requirements for foreign banks with US citizens as customers so onerous, to them, it’s no longer worth the hassle.

US citizens can still open an account in Canada. However, given that when Washington says, “Jump,” Ottawa says, “How high?” this can’t be considered a true safe haven.

Action #2: Buy Foreign Real Estate

Owning foreign real estate is an excellent way to diversify your assets. No government agency can force you to repatriate real estate from another country. If your bank accounts are seized and capital controls enacted, your investment is safe.

Foreign property is also largely insulated from adverse economic conditions outside of the country it’s located in. Buying real estate overseas does require a big investment of time, capital, and effort, but it could be a viable option if things turn sour stateside.

Action #3: Store Gold Offshore

As mentioned above, 84 years ago, President Roosevelt signed an executive order that outlawed gold ownership in the US. The order only applied to bullion held inside America. Gold held outside the country was safe. This shows why storing your gold across many jurisdictions is necessary.

So, how does one go about storing gold offshore?

You could buy gold from a bullion dealer in the US and transport it to an offshore storage facility yourself. However, moving gold overseas from the US is risky.

When physically transporting gold, declaration of that gold is a bit of a twilight zone. Do you have to declare it, or don’t you? The rules state that you don’t. Nonetheless, there have been several cases of individuals being stopped and questioned about their bullion at airports.

Taking this option leaves you open to potential seizure through money laundering or asset forfeiture abuse… and that’s just from US Customs. How will your yellow metal be viewed by foreign customs agents? Clearly, it’s not a risk worth taking.

Instead, you could buy gold abroad, then choose a vault to store it in. This option also has many pitfalls. How will you source a reputable dealer and a safe storage facility? Finding both requires that you do substantial due diligence.

The best option for anyone looking to purchase and store gold abroad is to find a company that provides international buy-and-store programs. Firms like JM Bullion, APMEX, and the Hard Assets Alliance provide such services. Buying gold through this avenue ensures your bullion is kept within your chain of custody and can easily be liquidated if need be.

You must make sure the firm stores your bullion in an allocated, private storage facility. It’s also essential you have the option to take physical delivery of your gold. This option gives you the full benefit of owning physical gold abroad, but with none of the headaches.

To optimize gold’s attribute as disaster insurance, you should store some overseas. For those who already own bullion located in the US, moving at least a portion into an offshore storage account would be prudent.

An important caveat here is that if the government really, really wants to get to your gold or foreign real estate, it will. However, taking these steps greatly increases the safety of your wealth.

In closing, diversifying your assets across multiple countries frees you from dependency on any one country… and its government. History has shown crises can hit suddenly. Therefore, you must take these steps before a crisis hits, not when you’re in the midst of one.

Get a Free E-book on Precious Metals Investing

Before you buy physical gold, make sure to do your homework first. You’ll find everything you need to know in the definitive e-book, Investing in Precious Metals 101: which type of gold you should buy and which type you should stay away from, where to securely store your gold, why pools aren’t safe places, and much more. Click here to get your free copy now.

© 2017 Copyright Hard Assets Alliance - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable,


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules