OUT OF POLITICAL REACH.

Out of political reach.

“If your gold is outside Europe, it gives you another degree of insulation should the EU (and Switzerland) decide that you shouldn’t own it.”

I’ve been a holder of gold since the 1970s. I've been advising my clients since the 1970s to buy gold.  At that time, I was buying most of my precious metals in South Africa. On average, I drove once a week to the airport to collect a shipment of gold bars and/or Kruger rands.

From my parents and aunt, I learned that gold doesn’t just make pretty jewellery, it has, for over 5000 years, served as man’s best economic insurance policy.  During and after World War II, my grandparents, Aunt, and Parents had experienced firsthand that their savings had to be kept in gold to prevent the government from confiscating them. During the War, the Germans enforced the use of their currency (Reichsmark), and after the War, the Governments seized all that was left (Operation Gutt, Lieftinck, high taxation in France,...)

Since the creation of the first fiat currency in China, ca. 600 AD, governments have had the annoying habit of creating fiat currencies.  Most of them have been paper currencies and, with the exception of the present-day fiat currencies, all have eventually become worth exactly zero.

Gold has, over centuries,  retained its lustre and saved the day, providing a solid means to store wealth.  Although governments and bankers have done all they can to discredit gold and discourage its use, gold invariably outlives them all.  I remember that, years ago, I advised a client to buy gold, and a colleague banker got upset with me. A very bad decision, he concluded. We'll never see these funds again - ever. A loss of profit for the bank, it is.

Today, we’re passing through one of these eras of overreach and, not surprisingly, those who are farsighted are quietly building up their store of gold to protect themselves when the latest form of fiat currency joins the rest that have collapsed over the centuries. We are talking about a tiny fraction of people. An average of 0.5% of the savers. 

But, having realized the need to own gold and silver, the holder asks himself, “Where should I keep it?” The obvious answer is at home, or somewhere very close, so that he may get to it easily, if need be. During good economic times, this may well mean in a safe deposit box in a bank, but in times like the present, when governments (the EU, US, and Canada, amongst others) have recently passed laws allowing banks to confiscate deposits and raid safe deposit boxes, the last choice for safe storage would be a bank.  Few know that years ago, the Templars also kept their gold out of political reach. A wise decision as the governments went as far as torturing and burning the Templars at the stake in order to find out where they had hidden their gold.

But, when turbulent times come, as recently, keeping Gold within political reach only works well if for a small amount of gold, say ten ounces or less.  If you hold more at home, you run into the problem of governments. In 1933, US President Franklin Roosevelt demanded that all gold be turned in to the government. He subsequently revalued it and, in doing so, robbed its rightful owners of a 41% increase in their wealth.

Unfortunately, since the EU, US, Canada, and even Switzerland have all passed confiscation laws, those jurisdictions are no longer safe places to store wealth. Ten ounces of gold may be regarded as an emergency stash, but beyond that, another jurisdiction that’s not threatened by confiscation laws is required. Be advised that today, with CRS (the automatic financial exchange of information by banks of many countries), it is no longer easy.

We’re not facing a recession. We’re entering a complete system reset—a collapse of the bond, equity, and currency markets all at once.

Forget the mainstream narrative. If your capital isn’t positioned away from the financial crosshairs, you’re a target.  What the depositor should be after is a facility that’s heavily reinforced on all six sides (meaning that the ceiling and foundation must be just as impenetrable as the walls). In addition, it would need a Class III bullion vault – the equal of the best bank vaults. In addition, it should have multiple security doors and man-traps leading to the vault, assuring that no one who enters can make a dash for the exit. This virtually eliminates the temptation for theft.

Also important is that the metals stored in the vault are insured by a reputable insurance company, like Lloyd's of London, and it is certified that in case of theft, the goods are replaced by similar goods instead of the traditional financial compensation. Last but not least, a reliable concierge service is extremely important. Especially when one is unable to travel freely, the concierge can fulfill the required tasks that you are unable to.

Unfortunately, to my present knowledge, there’s only one, maybe three depositories in the Western Hemisphere that tick all the boxes.  Or perhaps I should put that another way: Fortunately, there is one depository in the Western Hemisphere that ticks all the boxes.

One depository is located in Panama. Most importantly, it’s located in an exceptional jurisdiction as regards wealth safety:

• No direct taxation of any kind. No taxes or duties apply to the purchase, ownership, storage, or sales of precious metals. No capital gains tax; no inheritance tax. No sales tax. No VAT.
• World-class financial system to provide auxiliary services.
• Stable government with a consistent history for economic stability that caters to international investors.
• Minimal wealth legislation and regulation, to assure a minimum of red tape in processing purchases, sales, transfers, and shipment of metals.

Secondly, this vault ticks all the boxes as a top bullion storage facility. Also, it’s only three hours by air from the US, six hours from Canada, 8 hours from Buenos Aires, and ten hours from Europe.

It’s also essential that your deposit is fully insured and that the storage is fully documented, allocated, and segregated.  And that is exactly so in our Panama vault.

It is also very important to store in a way that the CRS can't affect you, and in a different financial system.

Last but not least, very important is to have a concierge service, so you don't have to travel all the way to the vault if some changes are to be made: store additional

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