Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

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