Gold and silver are becoming increasingly alternative investment strategy and asset protection. We say alternative investment, although shouldn’t be look strictly as an investment, but rather long term protection, where you change paper (money) for something tangible and liquid. The main reason is protection against devaluation of currencies and deficits. Some time ago banks were a primary choice for the storage of gold, but that is no longer the case. Nowadays non-bank safety deposit boxes are number one choice.
Gold has to be stored in institution, which has no ties to any bank, operating completely independent. Banks made the removal of your deposits increasingly difficult. They create reporting requirements for what is stored in deposit boxes and restrict what can be stored, at risk of confiscation.
In this article we take a look into 3 best jurisdictions to store gold offshore. It may cost some money to visit those jurisdictions, but that is a price for protecting your wealth.
Before storing your gold we suggest that you never store it with the institution where you bought it and you don’t store it in the bank. You might also consider insurance for your gold (and/or precious metals). We suggest that you don’t store it in the bank, since you don’t have to report it to the IRS in this case.
Singapore is a safe and well established jurisdiction. Regulations are minimal, corruption is among lowest in the world and they have solid tax structures. Although Singapore holds only a few percent of the world’s gold bullion, authorities made their goal to achieve 10% in couple of years. Singapore offers some cheap prices for deposit boxes, starting as low as 75$ annually, which makes Singapore very competitive. Singapore government ditched the goods and services tax (GST) that it used to charge on gold bullion purchases.
Austria is our second choice, who besides stability provides great amount of anonymity. Company Das Safe for example, offers anonymous safe deposit boxes, all you have is the safety deposit box and PIN number, with which you enter secure storage. They provide great security, but with no cameras so you are completely anonymous. No registration, no identification is required. Prices start with 450€ for anonymous deposit boxes. Austria provides also easy purchasing of gold in about every bank.
Finally, there is Switzerland, which tradition is banking secrecy. Unfortunately, for Americans it became harder to register safety deposit boxes on the basis of FATCA and store precious metals. However, if you can get in, Switzerland offers some of the best services for gold storage in the world. Zurich have historically been big center for gold trading and storage.
Bonus Cayman Islands
Not exactly known as a top spot for offshore storage of precious metals, Cayman Islands can be an option for those, who for whatever reason can’t or don’t want to store it to Singapore, Austria or Switzerland. Just make sure you store it to non-financial institution, as there is no wealth reporting to either the Cayman or any foreign government or entity.