One of the most popular questions we are asked is why, how, or where to store bullion internationally.
The volume and sophistication of the questions we receive highlights the concern many of us have about aggressive governments, whether it's capital controls or outright confiscation.
For years, government efforts (especially in the US) have discouraged the use of “offshore” accounts by expanding reporting requirements, accompanied by stiff fail-to-file penalties. Despite the disinformation and scare tactics, we found cost-effective, reputable, and secure facilities to store gold beyond the easy grab of Uncle Sam. They're 100% legal, and compliance is easier than advertised.
These non-bank offshore gold storage services check all our due diligence boxes and yield a layer of asset protection and peace of mind that only international diversification can provide.
As I investigated these options, one thought crystallized in my mind…
The Time to Diversify Internationally Is Now
That's not an empty slogan.
Given that we've not yet experienced any fallout from historic levels of currency dilution, we're certain bullion prices will be much higher in the near future once the crisis picks up steam.
Second, the window to purchase or deliver bullion outside your political jurisdiction won't be open forever. As Doug Casey insists:
“Your biggest risk is not that gold or silver may fall in price. Nor that gold stocks could take longer to catch fire than we think. Not even the prospect of the Greater Depression. No, your biggest risk is political. As bankrupt governments get increasingly desperate for revenue, any monetary asset held domestically could be a target. It is absolutely essential that every investor diversify themselves politically. In fact, at this point, it is the one action that should be taken before anything else.”
Doug's views aren't based on paranoia or whimsy. The International Monetary Fund (IMF) endorsed the use of capital controls in late 2012, stating “capital flows can have important benefits for individual countries across the fund membership and the global economy.” In 2013 they proposed a global wealth tax. And in early 2014, Germany's Bundesbank said countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy.
Meanwhile, Harvard economists Carmen Reinhart and Ken Rogoff told the American Economic Association that debt write-downs and “financial repression”—i.e., inflation and restrictions on the flow of capital—may need to be used by “rich economies” to reduce debt burdens.
The intent of capital controls is straightforward: Restrict the flow of capital into and out of your country to prevent a run on the currency and banks that would trigger a financial crisis.
The trouble begins once our money is trapped inside the border: It's vulnerable to the taxation, inflation, or confiscation whims of Washington. Basic prudence demands that we place sufficient assets out of harm's way.
Even if you don't share our view on internationalization, consider this: What if Doug is right? Or what if it's not as bad as he thinks, but worse than you expected? What if a business or career opportunity surfaces down the road, but your funds are caught in a hostage situation?
Look at it this way: Capital controls or not, you will be no worse off with some gold and silver stored outside the US. International bullion storage is a fast-growing niche business.
And if nothing happens and you have some gold in a different country? Hello, vacation. Or if you've accumulated enough, hello, vacation home.
Storing gold and silver internationally is no longer difficult—it's not terribly complicated to set up, can be done at very reasonable cost, and doesn't require you to be part of the top 1%. And it could be a lifesaver if things get nasty someday—if nothing worse, well, maybe we'll plan a Casey wine-tasting vacation in that country someday.
We have done due diligence and on-the-ground research on a number of private vaults and storage facilities around the world. We outline our preferred jurisdictions and facilities in our Going Global publication. Normally, this book retails for $99. But we believe this book is so important, especially right now, that we’ve arranged a way for US residents to get a free copy. Click here to secure your copy.