INVESTING IN GOLD
Gold Held in Private Foreign Vaults Does Not Have to be Reported to the IRS
There are some exceptional benefits for U.S. citizens investing in foreign countries. There are 2 assets that do not have to be reported to the IRS and they are foreign real estate and “Gold Held in Private Foreign Vaults.” The gold cannot be stored in bank vaults.
Of course, jewelry and a small amount of gold can be stored in a vault in your residence or you could even bury it in your backyard.
There are incredible true stories, whereby the greedy IRS has raided people’s homes and confiscated, even the wedding rings right off fingers and deployed metal detectors to search the property. The same IRS agents have even carted away the family dog and even the dog house to sell them to pay back taxes.
You can invest in gold stocks, but again this is just paper supposedly backed up by gold and there have been numerous frauds perpetrated by these gold stock company owners. One company had a large amount of gold stored, which turned out to be gold plated lead.
We recommend a private vault company in an EU country with a “0% import duty rate” for importing gold bullion that operates completely anonymously. It is the only completely anonymous vault service that we are aware of in the entire world.
“There is no ID or biometric data (eye scan) required.” Only you alone choose your PIN that opens the first lock and only you alone have the key for the second lock to your drawer.
There are 1000 tons of reinforced concrete surrounding the vault. It is secured 24/7 by armed guards and by a state of the art electronic system backed up by a powerful generator.
Singapore is the best country in the world to buy gold bullion. Traditionally, bullion was taxed at the normal 7% Goods and Services Tax rate – basically a VAT or national sales tax. As of October 1, 2012, however, the Singapore government has eliminated that tax and now purchases of “Investment Grade” bullion is tax-free.
Unlike Hong Kong, one’s purchases need not be declared to the Singaporean government or any other state. This is especially important, knowing that historically, during times of financial chaos, governments sometimes resort to the expropriation of resources, particularly gold, in order to maintain control over the monetary system.
That means gold “Maple Leaf’s, Philharmonics, Buffalos, Gold Bars,” and most silver products are now exempt from tax when buying or selling. “Gold American Eagles” are not of high enough purity to fall under the investment grade criteria.
Singapore has also made it easy to get your gold into and out of the country. Customs doesn’t even demand to know who is the beneficial owner of your precious metals when they pass through the airport. Try pulling that off in the US.
If it’s a small amount of gold bullion you can even purchase your gold bullion directly in the Singapore Free Zone at the airport and carry it on the plane with you. It’s tax-free leaving Singapore and tax-free entering the EU country where you can open your anonymous storage vault account.
Which gold coin to purchase? Here is our favorite.
The Chinese Panda is what we call a semi-numismatic coin. Meaning it has some numismatic value since its design changes every year. China has a rich history and is responsible for the first forms of currency stretching back almost 3000 years. They got into modern gold bullion coin production in 1982, with the China Gold Coin Incorporation (CGCI) introducing the 24K (99.9% purity) gold Panda bullion coin. Perhaps the biggest novelty, however, was the decision to a have new design on its reverse each single year. This turned the Panda coin into a collectible and bullion coin at the same time, becoming the first such coin of its kind.
You can purchase gold bullion directly from HOB bank in the Singapore Free Zone at the airport. Please note they are closed Saturday afternoon and all day Sunday. You can pay with cash, credit card or via bank transfer. Be careful about buying coins from jewelry stores at the airport as they can charge a higher spread.
United Overseas Bank (UOB)
60 Airport Boulevard, #B16-17 Changi Airport Terminal 2 Building, Singapore 819643
www.uob.com.sg – 18002222121
Hours: Mon – Fri: 09:30 – 16:00, Sat: 09:00 – 12:30, Closed: Sun & PH
Except for trivial amounts you shouldn’t use basic postal services to ship precious metals. In fact, many national post offices explicitly prohibit it. For global door-to-door delivery, this leaves us with insured courier services such as FEDEX and specialty transport companies such as “Brinks.”
For very large portfolios of metals, companies like “VIA MAT” and “Malca-Amit” are commonly employed. This is because they can act like a “Bailment Service” by transporting to/from secure vaults and storage facilities around the globe, including places like to/from the “Singapore Free Zone” at the airport.
Full insurance can be arranged and paperwork and customs clearance is taken care of (don’t underestimate the benefits of this). For serious high rollers, Malca-Amit even has a precious metal division that can source and ship bullion on your behalf from a refinery to your vault.
If your portfolio of metals doesn’t stretch into the thousands of ounces, then companies like FEDEX and UPS can be relied upon to deliver smaller consignments. DHL is the only courier we’re aware of who refuses to ship precious metals.
A holiday that is recommended is first to Bangkok to visit some beautiful Buddhist temples, on to Phuket for your addiction, dental and medical treatments, on to Singapore to purchase your gold bullion and on to Europe to open your anonymous vault storage account (see Arden Group – Residency – Thailand section).