Offshore Gold Storage
Protect your hard assets, avoid gold confiscation, and diversify your investment portfolio.
It’s very easy to forget that a mere 50 years ago, the US dollar was fully backed by gold.
Richard Nixon decoupled the two in 1971 and, ever since, fiat money has dominated the global scene.
In other words, cash is king. But is that still the case?
Fast-forward to today, western governments are digging themselves further into debt and countries are waging wars on cash.
These and various other factors have made the future of fiat currencies around the globe a little less certain.
So, people have turned to gold, silver, platinum, palladium – the precious metals.
For a Nomad Capitalist like yourself, it’s not as easy to purchase and store bullion as it is for someone living a simpler, more domesticated life.
This page is here to guide you through all the ins and outs of the best option for anyone to protect their gold, especially for Nomad Capitalists: offshore gold storage.
REASONS TO STORE YOUR GOLD OFFSHORE
Burying your hard assets in your backyard hardly qualifies as a solid gold storage strategy. You risk losing your investments to natural disaster, robbers, or even your own forgetfulness.
Storing your gold, silver, palladium, platinum and other precious metals keeps them out of the reach of government freezes and seizures.
When combined with other investments like foreign real estate, gold and other precious metals can form an integral part of a diversified international investment portfolio.
Why You Should Buy Gold and Silver
Precious metals have been around for thousands of years.
They are a tried-and-tested way to accumulate and protect your wealth.
Investing in gold is a great idea because it offers several benefits that paper money cannot:
- Security (with proper storage)
- Hard Assets
- Hedge against inflation
- Value determined by the free market
That last point is especially important: the price of gold isn’t controlled by the Federal Reserve or central banks.
The free market has all the power.
Here at Nomad Capitalist, we’re not conspiracy theorists that peddle doom and gloom.
We don’t believe that the US dollar will become tomorrow’s toilet paper.
Despite its many drawbacks, the US economy is doing much better than most of the West. And the US dollar is still the cleanest shirt in the dirty laundry that is fiat money.
But we do believe it’s smart to use gold and silver to protect yourself from a radical decline of the purchasing power of fiat currency.
It pays to protect yourself.
It pays to have a hedge against the government and their cash printing presses.
There’s plenty more to say on the subject of buying gold and why it’s such a strong investment option.
But if you’re already sold on the benefits of investing in these hard assets and are ready to purchase gold, one question remains:
Where on earth do you put it?
The Big Problem: Storing Your Bullion
To guarantee that you reap the full benefits of investing in precious metals, you need to consider exactly where you will store them.
It’s a proper headache.
And if history has a chance of repeating itself, storing it in the US won’t offer the protection you are looking for.
If you have coins squirreled away in a coffee can in your mother-in-law’s basement, your parents’ attic, or under a loose floorboard in your living room – it’s time to rethink your gold storage strategy.
Your gold is simply not protected in those places, and your storage solution is hardly scalable.
You can physically lose it (or lose track of it), a house robbery could occur, or the house could burn down.
An alternative could be a safety deposit box at a bank.
But when you consider that a safety deposit box would only give you access to your precious metals for a mere eight hours on weekdays (assuming the power is on and some kind of natural disaster hasn’t taken place), suddenly, it’s not that appealing.
Savvy gold owners want safe storage solutions and convenient access to their gold and silver.
And that is why offshore gold storage is the best possible place to store their bullion.
What about Crypto?
There’s no doubt that cryptocurrency is hot right now. It might turn out to be a great addition to a diversified portfolio. It’s outside the banking system and it’s convenient.
But crypto is not private and its value is spiking and dropping while everyone figures out the viability of this new potential currency.
For now, a good way to diversify outside of your cryptocurrency holdings (or to cash out if you’re looking for a more stable investment) is to buy gold.
You can check out this article for more ways to diversify and use your cryptocurrency.
The Benefits of Offshore Gold Storage
There are two main benefits to having an offshore gold storage solution:
- Security/Asset protection
Whatever you call it, security is usually the primary reason to get into gold.
You want to protect your assets.
Although you might have invested in gold as an antidote to volatile fiat currencies, you would be leaving yourself vulnerable to another threat if you kept it at home:
Your own home country.
You need to protect your real assets from the greedy hands of government gold confiscation.
You might have heard of the 1930s gold-grab conducted by Franklin D. Roosevelt. He confiscated all the gold in the country.
That’s a true story, as shocking as it may sound.
And the trend is continuing. Countries like Ireland, Greece, Cyprus, and Poland have all seized the assets of their citizens in recent years.
They’ve taken bank accounts, retirement accounts, and hard assets too.
The time to move your assets from underneath the government’s nose is now.
If investing in gold is a hedge to buy yourself protection from debt-ridden governments gone mad, why would you then proceed to store your gold in the very country of which you are so wary?
If your gold and silver are safely tucked away in a private vault offshore, they become harder to freeze and much harder to seize.
More importantly, it gives you the opportunity to go toward your gold if things go bust at home rather than having to carry it with you and risking it being taken from you on your way out of a bad situation.
Don’t believe it would happen? It already has.
Just a few years ago, gold smugglers in India adopted the methods of drug cartels, literally swallowing nuggets of gold to get it in and out of the country after the Indian government prohibited the importation of gold.
If you want protection from your government, don’t buy or store your gold in their country.
Offshore gold storage offers maximum security for your assets – it’s a no-brainer.
Your future self will thank you for it.
And if you’re worried about the government coming for your gold, it is probably time for you to go somewhere else too.
To sum it up, placing your gold in safe offshore vaults makes sense because it eliminates two key risks: the risk of theft and the risk of seizure by the government.
And then there is the benefit of diversification.
We would never suggest you put 100% of your wealth in gold, silver, platinum or palladium, but as part of a smart offshore investment portfolio, it is an outstanding asset.
That’s true, provided that your gold is stored securely offshore.
The Best Places to Store Gold Offshore
Gold storage vaults can range from James Bond-caliber security facilities to a simple (but secure) storefront with secure safe boxes in the back room.
When it comes to deciding exactly where to store your hard assets offshore, a private vault that’s audited and guarded by high-level security is your best bet.
The good news is that you have choices when it comes to offshore gold storage vaults.
The bad news is that you’ll probably have decision paralysis since there are so many options.
So, how do you decide which one to go for? Switzerland? Austria? The Cayman Islands? Singapore?
Obviously, not all gold storage facilities are created equal and the best country will vary depending on your personal situation.
Someone who is primarily concerned with having quick access to their gold and silver will likely select a different country than someone looking for anonymity.
But overall, the best place in the world to store gold offshore is Singapore.
Their private vaults, in particular.
Le Freeport in Singapore features state-of-the-art security with multiple doors, armed security guards, access cards, iris scans and more just to get down to the vault. Then you have to open it up. And forget finding your way out on your own!
That’s a lot better than the coffee can in your mother-in-law’s basement.
And both SGPMX and BullionStar allow you to buy as little as USD$20 in gold or silver online and begin storing it for free in their vaults.
SGPMX even allows you to take out a gold bank loan for greater precious metals liquidity.
Overall, Singapore has not only done an excellent job of enticing wealth storage away from established hubs like Switzerland and the UK but it also has low taxes, a solvent government, no debt, and a sovereign wealth fund.
It’s a tiny country that’s doing really well for itself on the global scene.
But Singapore isn’t the only place offering high-quality gold storage options.
Other vaults in places like Hong Kong, Zurich, London, and New York store gold for people all over the world.
If you’re seeking anonymity, Das Safe in Austria has offered anonymous gold storage at their facility since 1984.
An added benefit is that US citizens who have stored gold and silver in private vaults like Das Safe or Le Freeport – unlike hard assets stored in a bank – may not have to report it to the IRS.
However, always check with your legal counsel. It’s better to be 100% legal and report than to risk fines or other penalties.
Can You Travel with Gold In Your Luggage?
Even as we advocate storing your gold and silver offshore, there’s something to be said for having a few gold coins on hand.
We’re certainly not opposed to having gold in a safe at home. But Nomad Capitalists sometimes don’t have a permanent home.
If you often move around and want to travel with some of your gold as a kind of insurance policy, pay careful attention to what countries you’re flying through and what their attitudes towards gold are.
Many will treat gold as a cash equivalent.
If you’re carrying gold valued over a country’s declarable amount, you’ll be asked a lot of questions – at the very least.
Avoiding questions from airport personnel is far from the only reason you should store your hard assets offshore.
Creating Your Offshore Gold Storage Strategy
If you’re ready to invest $50,000 or more, it’s worth having a private vault company with a full-service offering:
- A private account manager
- Better pricing
- Lower storage fees
When you’re storing even more substantial amounts (think $250k-$1 million range), you’ll probably want to set up a portfolio of vaults.
As we mentioned already, diversification is key to a successful investment portfolio.
Even though having your gold in two or three vaults won’t be as convenient as having it all in one place, it boosts your privacy and asset security – a worthwhile sacrifice.
The one thing you must be absolutely sure to do is to keep your gold out of banks. Any and all kinds of banks.
Sure, they can protect your gold against weather and theft, but they also leave your assets open to bank-based and government-based control.
Plus, you’d have to report all of your hard assets held in a bank, even in a safety deposit box, to the IRS.
In some countries, it is even illegal to store your hard assets in a bank. In other places, it is against bank policies.
Thus, a third party, non-government, non-banking institution is a more secure place to store gold.
It’s as simple as that.
Ultimately, where you store your gold comes down to going where you’re treated best.
It’s a bullet-proof concept that we return to time and again here at Nomad Capitalist.
Go where your business is treated best. Go where your assets, privacy, and peace of mind are valued.
Go where the private vault companies are innovating and finding new ways to bring value to their clients.
For now, it looks like the best place to find all this is in the East.
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