Offshore Investing In Gold

One of the common setbacks for investors considering offshore gold storage is the shipping cost involved in transporting physical precious metals to overseas vaults "halfway across the world." However, with the convenient location of The Cayman Vault, shipping costs are much less than other common offshore storage options available on the market today.

Gold is a sound investment vehicle, especially when it’s offshore. However, real estate can offer you more than a sound investment vehicle: An opportunity to own an asset offshore and a jurisdiction to be called ‘home.’

Whether you are worried about inflation, financial vulnerability, caring for your dependents in the future or currency devaluation, gold investments can be the answer. Click here to learn more about the history of gold’s value.

Offshore Gold & Silver Bullion Storage

Most precious metals investors are somewhat familiar with Executive Order 6102 that was initiated under Roosevelt’s term as president. This was a ruthless law, which commanded all citizens to surrender all the gold that they possessed to the government at a rate of $20 per ounce. The order also criminalized the possession of monetary gold anywhere in the United States. A similar occurrence happened in 1959, in Australia. In fact, governments have been doing this since the Second World War, when Hitler invaded Prague and demanded that their gold reserves be transferred to his account.

To buy gold offshore requires purchasing either a one kilogram (32oz.) or a 400 troy ounces (12 kg.) bar. The international gold market created the troy ounce which is equivalent to 31.1035 grams. “Troy” is named after the old French city of Troyes which was the center of medieval trading in gold. It takes a large investment to purchase and store gold bars since most bars are sold in large quantities and not by individual bars.

Despite the many pitfalls of offshore investing, it can still pay off to shift some investment assets from one jurisdiction to another. As with even the most insignificant investment, do your research before parting with your money - unless you're prepared to lose it.

Gold’s rate of return over the past 12 years has been exceptional. In 2010, gold rose 29.8% against the U.S. dollar for the 10th year in a row. In 2011, gold rose higher against 8 major currencies. The Wall Street Journal on April 6, 2011 stated that gold rose in value over the past 10 years by nearly 470%.

Jokes aside, the global turmoil is a no-joke. ‘The sign of times’ are there in the media, which — just like what they always do — sell you bad news after bad news. What people must realize these days is that they need to find the goods from the bads; they need to be proactive in dealing with the terrors and all the negativities.

“For more than two thousand years, gold’s natural qualities made it man’s universal medium of exchange. In contrast to political money, gold is honest money that survived the ages and will live on long after the political fiats of today have gone the way of all paper.” -Hans F. Sennholz

Diversification of Investment With Offshore Gold in Dubai

In some countries, regulations restrict the international investment opportunities of citizens. Many investors feel that such restriction hinders the establishment of a truly diversified investment portfolio. Offshore accounts are much more flexible, giving investors unlimited access to international markets and to all major exchanges. On top of that, there are many opportunities in developing nations, especially in those that are beginning to privatize sectors that were formerly under government control. China's willingness to privatize some industries has investors drooling over the world's largest consumer market. (To read more, see Investing Beyond Your Borders.) Disadvantages Tax Laws are Tightening - Tax agencies like the IRS aren't ignorant of offshore strategies. They've clamped down on some traditional ways of tax avoidance. There are still loopholes, but most are shrinking more and more every year. In 2004, the IRS amended the Internal Revenue Code (IRC) and began to collect taxes from both American corporations that operate out of another country and American citizens and residents who earn money through offshore investments. (For more information on tax laws that affect offshore investors, see the IRS' " International Taxpayer - Expatriation Tax".)

When a government runs out of money, they come for ours through capital controls, exchange control, tax and confiscation. With the US and UK governments seeing record levels of debt in the multiple trillion dollar range, that’s not some distant-future possibility but a very likely scenario.

India has already banned the use of much of it’s currency and other countries are moving towards similar programs, demonizing cash and promoting all-digital banking and a cashless society as the future.

Tutorial: Personal Income Tax Guide What Is Offshore Investing? Offshore investing refers to a wide range of investment strategies that capitalize on advantages offered outside of an investor's home country. We will briefly touch on the advantages and disadvantages of offshore investing. The particulars are far beyond the scope of this introductory article.

Much as we saw happen in Greece where account holders were stripped of their savings, Western banks have now been given the green-light to enter our savings and investment accounts and take our money to stay afloat – through a process known as a bail-in.

Well it’s not exactly free from government interference. Most gold investors know of Roosevelt’s 1933 gold raid a national gold confiscation where the American people were unshackled from their ownership of investment bullion.

Conclusion We are not lawyers, tax accountants or offshore investment experts in any country. Every individual's situation is different. Offshore investment is beyond the means of most investors, and above the risk tolerance of others.

Should your home country happen to have tough tax laws relating to offshore earnings, there are fully legal and commonplace methods available to reduce or even remove this liability through the use of additional offshore vehicles.

False ‘good economy’ statements made by the government of the world; the soon-to-be-bursting economic bubble created out of the desire to ‘trick’ the natural cycle of economy; the non-saving millennials; the list can go on and on, but you can catch the drift: The big picture is rather bleak.

For over 20 years, the company we deal with has provided rock solid and uninterrupted service handling the private purchase, secure vaulting, and liquidation of gold and silver bullion for its clients. This track-record has earned the company international recognition, not only from the quality and integrity of its products and services, but also from its dealings within these markets.

Confidentiality - Many offshore jurisdictions offer the complimentary benefit of secrecy legislation. These countries have enacted laws establishing strict corporate and banking confidentiality. If this confidentiality is breached, there are serious consequences for the offending party. An example of a breach of banking confidentiality is divulging customer identities; disclosing shareholders is a breach of corporate confidentiality in some jurisdictions. However, this secrecy doesn't mean that offshore investors are criminals with something to hide. It's also important to note that offshore laws will allow identity disclosure in clear instances of drug trafficking, money laundering or other illegal activities. From the point of view of a high-profile investor, however, keeping information, such as the investor's identity, secret while accumulating shares of a public company can offer that investor a significant financial (and legal) advantage. High-profile investors don't like the public at large knowing what stocks they're investing in. Multi-millionaire investors don't want a bunch of little fish buying the same stocks that they have targeted for large volume share purchases - the little guys run up the prices.