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Steve's note: Today's essay is the latest in our series on global wealth protection. Again, we welcome the experts at Casey Research for insights on how to handle your gold for maximum wealth security...
Wednesday, November 17, 2010
Yesterday we covered the little-known – but very useful – idea of private storage facilities for your gold.
I love these domestic storage facilities because they are outside the U.S. government's corrupt paper money and banking system... and they are more secure than storing gold at home.
Today, we're covering another important, but often overlooked, gold storage strategy: Taking your gold on vacation.
As I'll show you, following this storage plan could make a huge difference in your quality of life over the coming years...
While things look relatively calm in the U.S. right now, we're deeper in debt than Greece. Our government has rung up a more than $1 trillion war bill in the Middle East. And it has promised trillions of dollars in social welfare spending.
This is money we don't have... money we need to borrow. And as you read this, Ben Bernanke is printing fresh greenbacks to "paper over" our problems. It's a slow motion financial trainwreck our politicians have no interest in confronting. As a result, gold is soaring in value right now.
Time and time again, when faced with financial trainwrecks and declining currency values, desperate governments impose "capital controls."
"Capital controls" is a broad term for a variety of restrictions, such as new punitive taxes on any international investment... or laws forbidding citizens to send money overseas. Or consider the ultimate capital control: confiscation, such as when FDR confiscated U.S. citizens' gold in 1933.
It can happen again...
Remember, right now, you can safely store gold in an overseas vault without any U.S. disclosure or reporting requirements. And it's 100% legal.
With overseas storage, my advice is the same as for domestic storage. Avoid big banks. Go for private storage facilities outside the banking system. Here are three attractive jurisdictions, along with their pros and cons, and a facility to consider for your gold:
Advantages: Easy to get to, within short flying time from Atlanta, Dallas, Houston, Miami, Los Angeles, Orlando, and New York City.
Disadvantages: A newcomer to gold storage, and the gold market (to buy and sell bullion) is underdeveloped, though growing rapidly.
Private storage facility: Best Safety Boxes, Panama City (www.bestsafetyboxes.com).
Advantages: Centuries old reputation as a solid jurisdiction for gold storage.
You can buy and sell gold at just about any bank in Austria, and the country mints its own coin, the Philharmonic, which is quite popular and widely recognized, especially in Europe.
Disadvantages: Storage costs in Austria may be a bit higher than elsewhere.
Private storage facility: Das Safe, Vienna (www.dassafe.com).
Advantages: Like Austria, Switzerland has a time-tested tradition of storing gold, even through Europe's uglier times, like World War II.
Disadvantages: Also like Austria, storage costs will be higher, as will the cost of visiting the country.
Private storage facility: VIA MAT (www.viamat.com).
I know storing gold overseas may seem like a drastic step to some people. This advice may sound alarmist... or crazy.
But when you look at the huge debts our government is accumulating... and when you consider that gold has been confiscated in the U.S. before... and was outlawed for 41 years... I think it's crazy not to take some basic steps to protect yourself.
Yesterday, Casey Research revealed two stateside holding companies for your gold. Safer than burying it in your back yard, these independent companies are your best bets for keeping some of your wealth close to home – and out of the government's control. Read more here: The Best Gold Storage Ideas You've Never Considered.
THE INCREDIBLE CHINA COAL STORY
Remember... it's "Chindia" week in Market Notes. We're looking at charts that show how the growing economies of China and India are vacuuming up energy resources like oil and coal.
Yesterday, we looked at China's soaring oil consumption. Today, we'll look at the nation's similar appetite for coal...
While coal is hated by politicians and the "green" lobby, it's going to be a long time before the world is off the stuff. Coal is the cheapest way to generate massive amounts of electricity. The United States generates about 50% of its electricity from coal. China generates about 80% of its electricity from coal. And as you can see from the chart below, China is going electricity crazy...
In The Daily Crux