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BFI Perspectives 

  • Scott Schamber

Send Your Gold on Vacation, To a Safer Location

In my nearly two decades with the BFI Capital Group, the last 3 years with Global Gold, we’ve lived by the mantra, “you can follow your assets, but your assets might not be able follow you”, as reason to consider putting at least some of your hard-earned wealth outside of your home country.


In that context, did you know it is possible to send your existing gold to Switzerland, store it, purchase more, sell it, or even arrange for it to be delivered back?

I’m talking about an In-Kind Transfer of your gold to Switzerland…in essence, you can send your gold on a safe vacation. We at Global Gold have been bringing in clients’ existing metals for years, but even more so since the beginning of this year. However, because many firms like ours don’t allow it, few realize it’s even possible. Let’s change that…


Why send your metals offshore?


As some background, in the recent blog post by Mr. Sune Sorensen, Under the “Macroscope”: The Decade Ahead, Sune concluded his piece with the following: “With financial repression set to spread beyond the monetary policy domain, ‘how you own’ will be as important as ‘what you own’”.


In terms of gold, where you own should also be added there. And we clearly aren’t the only ones thinking this way: with problems of social unrest, and in consideration of the upcoming US election, we’ve been receiving more calls and emails from concerned investors, particularly from the US, worried about another gold confiscation.


They reference the Executive Order 6102 signed by then US President Franklin D. Roosevelt in April of 1933 which forbid the “hoarding of gold coins, gold bullion, and gold certificates within the continental United States”. Behind the Order was the intent to lift constraints the Federal Reserve had which prevented it from increasing the money supply, i.e. printing currency, during the depression. Sound familiar?


This Order was probably defined better as an expropriation rather than a confiscation, but 87 years on, we are getting a similar smell coming out of the kitchen. Today, central bankers and governments are just going to find “smarter” and more roundabout ways to do it.


What we are living through today could easily become the worst economic downturn in history, as the probability of a worldwide, sovereign debt crisis grows daily. In a soon-to-be-released Special Report being prepared by the BFI Capital Group team, we mention five ways excessive debt levels can be reduced, and the main one we are worried about is exactly financial repression.


Sending your gold on vacation – transfer your gold In Kind


We love Switzerland, and thanks to our direct democracy and a strong respect for private property, we feel Switzerland is a great, if not the best, place to send your gold on vacation to weather the storm out. And to do so outside of the banking system.


At Global Gold, we accept the In-Kind Transfer of your existing bullion bars or coins for storage in our secure vault in Zurich. But what we have learned is that many firms offering precious metals storage in Switzerland very rarely allow for it. Why is that?


It mainly has to do with time, and time leads to the issue of “money” for many metal providers. Yes, it takes time to plan for the movement of metals, for receiving them. Obvious care needs to be taken to make sure metals are legitimate, as are the people moving the metals. But ultimately, the biggest problem is that bringing in existing gold doesn’t bring in the profit like being able to purchase gold for a client.


However, we feel so strongly about your right to protect your gold – including the gold you already own – that we would be remiss not to offer the possibility. And if you are going to do it, you need to do it with someone that has experience.

“Gold is forever. It is beautiful, useful, and never wears out. Small wonder that gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time.” ~ James Blakeley

The right steps - with people that have done this before


It certainly isn’t a trivial transaction, which is why we generally require a minimum of at least CHF 250,000 or more in metal value. There are clear steps and costs to be covered. First, we have to make sure the metals are compatible to what we normally work with in our network of refineries, mints, and wholesalers. Under most of our storage options, we are able to buy and sell our clients’ metals for them, so we have to make sure the metals are liquid within our network.


And since we can sell the metals for our clients, those metals coming into our storage will need to be assayed to ensure the metals are true and legitimate.


Then, to meet our strict anti-money laundering regulations, we need copies of the original purchase documents, product certificates for bars, detailed information on the owner of the metals (if not already a client with us), and a letter of reference from a bank, accountant, or employer. If it’s a new client, we would require a completed application kit.


Once it is clear we can take the gold into our storage, we provide a proposal that includes a cost estimate including our administration and handling, the assaying of the metals, and the cost of transport should you want us to arrange that for you.


As soon as the costs are covered, and we know exactly where the metals are to be picked up from, the ball is set in motion. And once in motion, the transport is done quickly.

Gold’s relaxing destination – and your peace of mind


Once in storage, your gold will be placed in the same high security vaults as those metals purchased through Global Gold. 100% insured, no matter what the value, and no subsequent admin costs for any handling at the vault, for handling during our annual audit, etc.


Those holdings can then be added to, sold to our network, delivered back, or are available for pick-up anytime and whenever our clients need.


This doesn’t only have to apply to gold…Global Gold also works with silver, platinum and palladium as well, so your gold isn’t the only metal than can benefit. While Global Gold only trades in bullion bars and coins, we do offer In-Kind Transfers of numismatics or semi-numismatics as well, as long as our Keybox storage option is used.


So give yourself some peace of mind by sending your gold on a trip to Switzerland, outside of the banking system, putting you some physical, geographical distance between your wealth and what will inevitably be your cash-strapped government.


Let it ride out the storm – like many wish they could do in person – with the flexibility to buy more, sell, or simply bring it home once the sun sets on this current crisis.

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