How to Invest in Precious Metals — Offshore

When it comes to smart investments, precious metals is a proven way to invest. Precious metals, most commonly silver and gold, are of high value in terms of economy, and if you’ve decided to invest in precious metal, then you probably are looking for a full proof way to ensure return on investment, and then some.

The truth of the matter is that no investment is a sure thing, but precious metals do offer more potential than many investments. One of the biggest challenges that investors face regarding precious metals is where to store them. Many people choose to store their gold and silver at home, but this can be problematic. Keeping precious metals at home is risky, and it can result in theft or personal harm.

You could store your precious metals at your local bank, but this can also be risky. For instance, what happens if the government begins to seize personal investments? And yes, it happened before, and no one can guarantee it won’t happen again in the future.

No matter where you keep your precious metals, you’ll have to consider many factors. For example, a country could decide to outlaw gold ownership or place limits on the amounts that citizens can carry or send out of the country. Plus, currency values change, and as this happens, inflation can become a real issue. So, merely sending your precious metals offshore isn’t the complete answer.

Instead, we recommend diversifying jurisdictions.

Diversifying Your Precious Metal Storage’s Jurisdictions

Precious metal investment typically follows a pattern like this: buy, hold, and sell. It’s key to ensure that you’re getting the most from your investment. Securing your investments offshore is a great way to protect them from any government turmoil that might happen in your country, but what about the country where you’re storing your gold and silver?

Whether you’re looking for the most financial benefits, security, or simply just interested in offshore investing, it’s important to remember that diversification is the key to success.

With diversification, you can protect the sum of your precious metals from political turmoil, financial crisis, inflation, assets seizure, and other governmental issues. When you choose several offshore jurisdictions, you are ensuring that you don’t have all your eggs in one basket, and that’s exactly what you want concerning securing your precious metals. If your precious metals in one country take a hit, then you’ve still got stores spread out internationally.

One great example of how diversification can be beneficial: during the 1930s and 1940s, when the war was rampant across Europe, many people had already placed their assets in Switzerland and the United States. This ensured their assets were safe as the economy crashed around them.

As you can see, diversifying your jurisdictions is a smart way to reduce the risk of a financial crash, war, political turmoil, and other issues.

Things to consider

When you store your precious metals abroad, you have the opportunity to leverage lower tax brackets and incentives offered by other countries. This is where you have the change to take advantage of the benefits of offshore investing with your precious metals.

Cost consideration

Of course, storing precious metals abroad can be costly up front, but, if the returns are high enough, you can expect those costs to be absorbed. Even if it’s not giving you anything that constitutes a “return,” you can be sure that having precious metals in your possession means that you’re hedging against the looming economic collapse.

Moreover, as we know it, hedging against the collapse with precious metals is proven to give you an enormous upside.

The service level and reputation consideration

There’s one thing you should be aware of, though; when storing precious metals abroad, it’s important to be wary of scams. There are plenty of people ready to take advantage of your situation, so be sure you’re working with legitimate financial advisors.

When choosing jurisdictions for precious metals, it’s important to be sure that you are selecting an area with a stable history of depositor protection and a stable government and economy. Jurisdiction like Puerto Rico, Singapore, and the US (if you’re a non-US-citizen) can give you the best protection — and more, usually in term of service levels, rules and regulations, and/or economic/political stability.

Lastly, try to find precious metals storage companies designed to safeguard assets, such as globally-known and recognized Brink’s. Then, be sure that you always insure your precious metals and make it available.

Takeaway

Just like any other investment instruments, there can be some risks associated with storing precious metals in offshore jurisdictions. However, if you follow the rules, you should be safe — and you’ll likely come out ahead.

In closing, we know it’s tempting to keep your precious metals at home, but this poses a considerable risk. To get the most from your investment, you’ve got to reduce risk. Never carry your precious metals across borders yourself, as that also poses considerable risk. Instead, work with legitimate financial companies who can help diversify your investment with smart offshore investing.