Offshore investing: Is real estate better than gold?
With the heighten tensions in many parts of the world, it’s easy for us to feel anxious about our — and our loved ones — well-being. While ‘burying your head in the sand’ is what many people do these days, you’re here reading this should be a good sign that you might just do better than the rest.
Jokes aside, the global turmoil is a no-joke. ‘The sign of times’ are there in the media, which — just like what they always do — sell you bad news after bad news. What people must realize these days is that they need to find the goods from the bads; they need to be proactive in dealing with the terrors and all the negativities.
Economic uncertainties in many parts of the world don’t help the situation, either.
False ‘good economy’ statements made by the government of the world; the soon-to-be-bursting economic bubble created out of the desire to ‘trick’ the natural cycle of economy; the non-saving millennials; the list can go on and on, but you can catch the drift: The big picture is rather bleak.
Fortunately, on the other side of the threats, there are always enormous opportunities available for you to capitalize upon — if you know how to find them. Indeed, if you want to be proactive, there are ways you can do to increase your chance — not only to survive, but also to thrive.
So, what are your options?
Precious metals as hedge — held offshore
Precious metals are on the rise. It has been proven again and again that, in a bearish economy, gold and silver (and platinum) are excellent for hedging.
Gold, for example, is rare, portable, tangible, fungible and divisible. You wouldn’t care what it looks like — as long as it weighs correctly and priced according to the market.
Now, owning precious metals locally isn’t ideal anymore. You can’t put yours in the bank’s safe — it’s actually unsafe to do so. You can’t bury them in your backyard — the ground is naturally moving, so you might end up losing your stash. Also, you definitely can’t take those with you everywhere you go — that would be super risky.
One option is to store your gold offshore — preferably in a high-security vault, in a jurisdiction which statute protect your precious metal ownership privacy.
But where, you ask?
Singapore is one of the best when it comes to stashing your gold in a high security vault. The government removes taxes on precious metals, and the country itself is very stable politically and economically.
Another example would be St. Vincent and the Grenadines (SVG.) This jurisdiction is not that popular, but not many realize that our partner bank in the jurisdiction is a strong, solvent bank, which allow precious metal investing for their clients, as well as offering precious-metal-backed offshore bank account.
The problems with gold investing
Now, while we believe strongly that precious metals are the asset class you should focus on these days, there are some inherent problems with precious metal investing, specifically gold.
Stacking gold bars in a high-security vault is great, but how to access the vault when the collapse occurs? With all the riots happening (just like in Venezuela) and inaccessible public facilities, how can you leave your country immediately? Even if you do, what if you can’t sell your gold bars easily due to likeminded people doing what you’re doing?
Even if you can take your gold with you, trading it with, for example, food isn’t that practical. Silver coins may be a better option, and can be traded easily for groceries, supplies, etc. — but still, you’re heavily depending on where your precious metals are stored in.
Arguably a better option: Real estate
A classic investing vehicle, real estate remains attractive. If you do you homework well when analyzing offshore jurisdictions, you can easily buy a property offshore, at an affordable price.
There is even a better option, though: Real estate in a second residency/passport jurisdiction.
Invest in your quality of life
Cheap properties are available in various offshore jurisdictions — if you know how to find them. However, not all properties are suitable for your grand financial plan.
Real estate residing in a jurisdiction in which you’re planning to get a second residency or passport from sounds like a better option.
However, such jurisdiction must meet several criteria. It needs to have a growing real estate market, but more importantly, it needs to offer exceptional quality of life.
You should also consider your very own preferences that drive your choices of jurisdiction. For example, residency in the Carribean might be nice, but if you aim for accessibility to better facilities, you might want to consider bigger jurisdictions like Panama City, Mexico and so on.
Which one is better: Gold or real estate?
Gold is a sound investment vehicle, especially when it’s offshore. However, real estate can offer you more than a sound investment vehicle: An opportunity to own an asset offshore and a jurisdiction to be called ‘home.’
There are things to consider when choosing the right jurisdiction, but all in all, you should consider the one that can offer you booming real estate market and stellar quality of life.
That said, offshore real estate investing seems to offer more than just asset protection. However, although it’s a cliche to say that you should invest in both, both does look good in your investment portfolio.
Now over to you: Which one is a better offshore investment? Real estate or gold?