Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Who Knows What Will Black Gold Do in Coming Week? - 18th Dec 17
Gold’s Shooting Star and Its Implications - 18th Dec 17
UK Used Car Christmas From Dealers Buying Discount Sales Bargains - 18th Dec 17
How To Play The 2018 Cannabis Boom - 18th Dec 17
Should You Consider Investing/ Buying Gold or Bitcoin? - 18th Dec 17
Gold EFPs: Absolute Proof that the Paper Gold Price is a Fraud - 18th Dec 17
Gold – Technical Obfuscation, Fundamentals, Predictions - 18th Dec 17
Stock Market Final Thrust is Likely - 17th Dec 17
Never Mind Tea Leaves, Here’s a Strong Signal from the Economic Dashboard - 17th Dec 17
As Bitcoin Breaks All-Time Highs Near $18,000 Its Future Has Never Been So Uncertain - 17th Dec 17
Best Time / Month to Buy a Used Car From a UK Dealer - 16th Dec 17
Relief Rally in Gold Mining Stocks - 16th Dec 17
Amid Bad Fundamentals, Gold Sector Rally May Have Begun - 16th Dec 17
Gold Bullish on US Fed Interest Rate Hike - 16th Dec 17
The LORAX Explains What Happened to Sheffield's Street Trees 2017 - 16th Dec 17
Bitcoin Trading Alert: Bitcoin Pauses – Will Appreciation Follow? - 16th Dec 17
SanDisk Ultra 128gb 100mbs Micro SD Card for Smartphone's Speed Test - 15th Dec 17
Inflation is Spiking Globally… Bond Bubble Bursts in 3… 2… - 15th Dec 17
Sheffield's 'Real' LORAX Defending the Trees From the Labour City Council Patrol Units - 15th Dec 17
Stock Market Decline Signals are Near - 15th Dec 17
Santa Is Putting Christmas On The Blockchain And Saving Billions - 14th Dec 17
The Unprotected, the Protected, the Vulnerably Protected Classes—Which Are You? - 14th Dec 17
Gold’s Upside Target - 14th Dec 17
Year-end US Interest Rate Hike Again Proves To Be Launchpad For Gold Price - 14th Dec 17
2 Charts That Might Define the Fed’s Jerome Powell Era - 13th Dec 17
UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - 13th Dec 17
Stock Market Elliott Wave Forecasts - Is the World coming to the end? - 13th Dec 17
A Method Traders Can Use to Confirm an Elliott Wave Count - 13th Dec 17
Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - 13th Dec 17
A Former Wall Street Veteran: Good Traders Are Born, Not Trained - 12th Dec 17
Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts to Continue? - 12th Dec 17
Masters of Economic and Political Illusion – in Taxes, Debt, Government, and Markets - 12th Dec 17
Approved Used Land Rover Main Dealer Real Customer Buying Guide - Hunters, Chester - 12th Dec 17
Gold Price 100% Bullish Signal - 12th Dec 17
Epic Stock Market & Fixed Income Bubble Will Not End Well - 12th Dec 17
Bitcoin can be stolen. Although Can’t be hacked - 11th Dec 17
Have Stocks Reached A Permanently Rigged Plateau? - 11th Dec 17
Trying To Beat The System Is A Fatally Flawed Investment Strategy - 11th Dec 17
Is This The Beginning Of The Next Silver Rush? - 11th Dec 17
The Dow Gold Ratio - 11th Dec 17

Market Oracle FREE Newsletter

Traders Workshop

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,


© 2005-2018 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

Catching a Falling Financial Knife