Benefits of Offshore Gold Storage

When it comes to gold storage, the easiest option, which we definitely don’t recommend, is basically in a home safe, under the carpet, or somewhere else in home storage.

Here we will take a closer look at the methods, jurisdictions, and benefits of offshore gold storage. The risk of keeping any valuable assets at your home or business is massive and never a smart option. 

The next option that might seem like the obvious choice is bank safe deposit boxes. It’s an inexpensive solution. However, many people don’t understand that there’s no insurance in these safe deposit boxes or traditional bank vaults if someone breaks into the bank.

Most banks specify in contracts that they are also entitled to break into the safe deposit box if they have any suspicions of an offense or something else of concern, which is usually very broadly phrased and basically allows the banks or government to do, whatever they want, whenever they want.

The third option, and the one we recommend to our high net-worth clients, is using private vaulting facilities, such as the one our partners, precious metals storage providers, J. Rotbart & Co., offer. The advantage of this and similar private vaulting companies based worldwide is that you are storing your valuables and assets with experts. Most of these vaults will also offer you security and are fully insured as part of the service.

Benefits of Storing Precious Metals Offshore

Storing your gold in a different jurisdiction offers a number of benefits, including shielding yourself from government overreach and excessive taxes, while affording you greater financial freedom. 

Privacy

When you look at the history of gold, especially in the United States, which has a long history of government seizures and controlling prices, privacy and personal freedoms are a real concern. 

Just one such example is when in 1933, the then-president, Roosevelt, notoriously confiscated gold from private US citizens. Just five days after taking office, Roosevelt passed an Act enabling the seizure of gold from private citizens.

As a result, one month later, Roosevelt issued an Executive Order that not only banned the private ownership of gold but also demanded that citizens surrender their gold to the Federal Reserve.

The ability to possess gold was only reinstated again in 1974. A similar gold confiscation happened in the United Kingdom between 1947 and 1979. Although never taken from the citizens, Australia imposed a massive 50% tax on gold redeemed at the Commonwealth Bank in the 1930s.

You might wonder if this is still a present danger. As it deals with historic debt levels, the United States government has increasingly demonstrated its desire to control its citizens’ assets. As government and central bank tackle the current financial crisis, they may become more willing to consider all options, including gold and silver confiscation. 

Therefore holding a considerable portion, if not all, of your gold and silver offshore is an excellent way to safeguard against these risks. 

Financial Freedom

Offshore gold and silver storage is ideal if you are looking for greater financial freedom. Depending on the regulations within your jurisdiction, offshoring your precious metal storage could be non-reportable.

There are a number of factors to consider, and rules differ in different jurisdictions and change periodically, so when it comes to offshoring your precious metals or any other assets, going to the experts is vital. 

Gold is a decentralized global currency, a kind of real bitcoin, before bitcoin, since it’s not issued by any government. It’s global, and you can use it anywhere in the world.

Physical gold and silver may even be superior as it provides even greater privacy and freedom compared to bitcoin’s record-keeping on the blockchain, which makes every deal publicly available and possibly linked to your identity.

Diversification

If you have experience investing, you no doubt already appreciate the value of diversification. Going offshore provides the ultimate wealth diversification and hedge against potential risks. 

Traditionally, people have lived, worked, and held all their assets in one country. In today’s world, we are no longer limited by the belief and restrictions that once dictated that we had live, work, and hold our assets in one place. 

Acquiring a second passport, setting up an offshore bank account, owning decentralized assets, and storing precious metals in another jurisdiction give you ultimate diversification. Giving you a type of insurance against exposure to economic and social disruption or other crises in your home country.

Benefits of Offshore Jurisdictions: Singapore

Now that we are clear on the benefits of offshore gold storage let’s look at some jurisdictions worth considering.

The Asian Switzerland, Singapore, has been establishing itself as a safe offshore place to store and buy gold bullion coins. Recently, more people have been choosing to move their assets to Asia, particularly Singapore, partly because of concerns about Europe’s financial stability. 

Singapore is has a stable government plus low crime and corruption rates. Since its independence in 1965, Singapore has transformed into one of the world’s top financial centers and top precious metal storage jurisdictions.

The gold vaults in Singapore are some of the most impressive in the world. Singapore is the ideal location to buy gold and open an account. With some vaults, you can even apply for a gold-backed debit card. 

Switzerland 

Switzerland has long been the go-to jurisdiction for secure precious metal storage. When buying physical gold, it’s best to do so in a country like Switzerland, where property rights are strong.

Switzerland is a uniquely safe jurisdiction, with seven presidents, giving municipalities and people ruling power. 

Switzerland has always held onto its right to exchange physical gold, unlike the United States, which confiscated its citizen’s gold in 1933, or Italy and Germany, which did the same under fascist rule. 

Liechtenstein

Similar to Switzerland, Liechtenstein is also an ideal place to hold your gold. The monarch of this tiny European territory is a major supporter of gold.

Liechtenstein’s stable economic and political situation, as well as ownership rights, make it the ideal location for storage, while also offering easy access from Germany, Austria, and Switzerland.

Another benefit of storing your gold in Liechtenstein is that its government does not require that customer data and the contents of safe deposit boxes be reported on and are not subject to the common reporting standard (CRS). 

New Zealand

New Zealand also offers potential as a wealth and gold-storing territory, thanks to its isolation from the world’s problems, developed economy, and being English-speaking, making transactions easy.

Precious Metals Storage Facility

You have decided where to offshore. Now, let’s look at what to look for in a precious metals storage facility. 

As mentioned above, it’s best to avoid traditional banks because they have the right to access the contents of the vault or safe deposit box. In the light of recent bank failures, this is not a good move. Private storage facilities, not exposed to banking risks, are much safer.

Look for a company that allows you not just to store gold but also to buy and sell gold bullion as you wish easily. Physical gold is incredibly liquid, but you need a safe deposit facility for fast transactions as well as secure precious metals storage.

Before choosing your secure storage company, clarify the logistics of transporting or transferring large amounts of gold.

With most Western governments facing increasing debt and cash-free economies being endorsed across the globe, the future of fiat currencies looks uncertain. Gold bars and other precious metals provide a more secure investment option. History has proven that offshoring your assets, including storing gold, will be essential in the face of the possibility that governments could once again take control of assets.