Can I Use a Gold IRA to Move My Precious Metals Offshore?
February 12, 2025
‘Gold is money. Everything else is credit.’
Those were J.P. Morgan’s remarks to the US Congress in 1912.
What happens if you have a nest egg built up in an Individual Retirement Account (IRA) or 401(k), but your investment options are limited to mutual funds that contain little upside and a lot of risk?
Keeping your money in US dollars is not an option. Inflation will eat them away.
However, a gold IRA is an option if you want to move to a more stable asset in a more stable part of the world away from the volatile US.
The Risks of Holding Investments in a Traditional IRA
Having your investments in a traditional IRA is a risky proposition. As the US government continues to flounder in debt, it will devise all kinds of plans to get at your money. IRAs and 401(k)s are definitely not on the safe list.
Now, the government is not just going to reach in and steal the funds from your retirement account.
There will be a big propaganda campaign surrounding it. They may say they are replacing your funds with annuity bonds.
The problem is, as the money-printing presses get cranked up to full speed, the value of your savings will dwindle quickly.
They will use all kinds of meaningless buzzwords to make this sound like a good deal for citizens, and you will be praised for being ‘patriotic’ in the process.
If the so-called leaders sense that people aren’t buying it, they will bring in celebrities to endorse the plan.
Of course, these grimy politicians will use all their usual dirty tricks to sell the plan, like saying this will ‘only affect the top 5%’.
But… ‘the rich’ starts out meaning one thing, then… slowly… moves… to affect……everyone.
If you’re living in the United States and are thinking, ‘this will never happen here’, keep reading.
The collapse of US futures firm MF Global Holding in 2011 illustrates how it is already happening in the US.
Some thought the MF Global collapse was the tip of the iceberg, and the bigger ramifications were that the entire financial system could have been utterly destroyed.
California’s Franchise Tax regime implemented a retroactive tax that had small businesses fuming but, ultimately, without recourse.
Nomad Capitalist founder Andrew Henderson had nearly US$2,000 taken out of his account by these people, with no due process and paid all the taxes they said he owed.
With all that is going on in the US, retirement accounts are not something you want to leave to the whims of gangsters and banksters.
Step one is to move your IRA funds into safety with gold or silver, and step two is to get them offshore and out of reach of the thieves at home.
The Gold IRA is essentially an individual retirement account where you can invest in gold and precious metals, as opposed to traditional plans, which limit you to stocks and sometimes exchange-traded funds (ETFs).
This kind of IRA holds gold bars or coins instead of paper. To move to a gold IRA, you must go through the rollover process, which is a tax-free event with the IRS.
The Taxpayer Relief Act of 1997 states that ‘your IRA can invest in one, one-half, one-quarter, or one-tenth ounce US gold coins, or one-ounce silver coins minted by the Treasury Department. Beginning in 1998, your IRA can invest in certain platinum coins and certain gold, silver, palladium and platinum bullion.’
Just what are the advantages of such an IRA?
First, it’s a hedge against inflation.
It also helps protect your wealth and purchasing power against a sinking dollar.
Not to mention growth potential versus deterioration –- and since it’s self-directed, you have much more control over funds than a Roth IRA.
By owning gold in your IRA, you are no longer subject to the risks of margin calls, failing companies or bankruptcies. It also protects you from banking crises and geopolitical volatility.
Types of Gold IRAs
Here’s a run-down of the types of gold IRAs available:
Traditional Gold and Silver IRA
This is an arrangement that allows earnings and deductible contributions to grow tax-deferred. No income taxes are paid on earnings and deductible contributions until withdrawals are made.
You can easily transfer an existing Traditional IRA to a Traditional gold IRA with no penalties or taxes.
Roth Gold and Silver IRA
This is a plan that allows earnings and deductible contributions to grow tax-free. All the tax benefits associated with a Roth IRA happen when withdrawals are made: withdrawals, subject to certain rules, are not taxed at all.
There are no tax benefits associated with contributions because all contributions to a Roth IRA are made with after-tax funds.
Individuals can transfer an existing Roth IRA to a Gold Roth IRA with no penalties or taxes.
SEP Gold and Silver IRA
A Simplified Employee Pension Individual Retirement Account is a variation of the Individual Retirement Account. The gold SEP-IRA really is ‘simple’ (even more so than the simple IRA).
There are no administration costs if you are self-employed and don’t have any employees. If you do have employees, all employees must receive the same benefits under a SEP plan.
Since SEP accounts are treated as IRAs, funds can be invested the same way as any other IRA.
Self-Directed Gold and Silver IRA
These are the most flexible plans. A Self-Directed Individual Retirement Account (IRA) requires the account owner to make investment decisions and investments on behalf of the retirement plan.
IRS regulations require that either a qualified trustee or custodian hold the IRA assets on behalf of the IRA owner.
401K, 403B Plans
An employer-sponsored retirement plan allows employees to save for retirement while deferring income taxes on the earnings until withdrawal.
Individuals may, in some cases, convert a 401(k) savings plan into a gold IRA. If you have a 401K from a previous employer, it is easy to roll these funds into an IRA tax-free.
To find out more about how to set up a gold IRA, apply for a strategy call so we can determine your best options as part of a personalised and completely legal offshore plan.
Offshore Gold IRA: FAQs
A Gold IRA is a type of self-directed Individual Retirement Account where you can hold physical gold (or other approved precious metals like silver, platinum and palladium) instead of traditional assets like stocks or bonds. It functions much like a regular IRA, with the same contribution limits and rules for withdrawals, but your funds are invested in tangible assets.
Determining whether a Gold IRA is a worthwhile investment depends on your circumstances and investment goals. On one hand, gold has historically served as a hedge against inflation, meaning it tends to hold its value during periods of economic instability. It can also contribute to portfolio diversification, as gold often moves independently of stocks and bonds, potentially reducing overall portfolio volatility.
However, it’s important to remember that gold doesn’t generate dividends or interest like some traditional investments. You’ll also incur costs to store your physical gold securely, and the price of gold can still fluctuate, even if it’s generally considered a safe haven asset.
You can’t simply buy gold and add it to your existing IRA. First, you’ll need to establish a self-directed IRA, which is a specialised account that offers room for alternative investments like precious metals. Next, you’ll choose a custodian who acts as a trustee to hold and administer your IRA assets.
Once you’ve funded your account by transferring funds from an existing IRA or making a new contribution, you can work with your custodian and a precious metals dealer to purchase IRS-approved gold coins or bars.
While you can hold your Gold IRA with a custodian located outside the US, it’s generally not advisable. Offshore accounts can be subject to complex regulations, potential tax implications and increased risk.
If you’re considering offshore storage, the most popular choices include Switzerland and Singapore.
Selling a Gold ETF within your Roth IRA is similar to selling any other investment within the account. You’ll need to contact your IRA custodian or brokerage firm and instruct them to sell the ETF shares. The proceeds from the sale will remain within your Roth IRA, tax-free. Remember that you can’t take physical possession of the gold represented by the ETF, as it’s held by the fund.
Protect Your Wealth With Offshore Strategies
The writing is on the wall: the traditional financial landscape is fraught with risk. Unprecedented government debt, looming inflation and a history of policies that erode personal wealth are no longer distant threats – they are present realities.
For those with assets tied up in conventional IRAs, the time for complacency is over. A Gold IRA, specifically a self-directed one, offers a potent solution.
While fully offshoring a Gold IRA presents challenges, strategically using secure, internationally recognised storage options for your physical gold in jurisdictions like Switzerland and Singapore is a prudent move.
This is not simply about chasing returns – it’s about safeguarding your hard-earned wealth. It’s about leaning on a global perspective in an increasingly interconnected world.
Nomad Capitalist specialises in crafting these tailored solutions. Discover how a bespoke offshore plan, incorporating the enduring power of gold, can help you manage the complexities of the modern economic landscape and protect your wealth for generations to come. Reach out to us today.
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