The question that I am asked most frequently is “Will they confiscate my gold?”
I wish I could give you a definitive answer, but the fact is no one knows. I pay close attention to what Richard Russell and Jim Sinclair have to say and to the best of my knowledge; both of them believe it simply will never happen. Of course, that is not a “guarantee,” simply a viewpoint. When it comes to YOUR money, an “opinion” is not enough, even one from Russell and Sinclair.
The way I approach the subject is to expect the worst and hope for the best. So, if you allow for the possibility of gold confiscation, how does that affect your decision whether you should own any? Here is my strategy and I am comfortable that it will serve me well.
The key word here is diversification. Diversification in both portfolio choices and in location. Let’s start with portfolio diversification. I do own gold, a fair amount of it. It is mostly bullion, but I do have some semi-numismatic gold which could qualify as a “collectible” and be exempt from government confiscation. That was the case in 1933 when Roosevelt did in fact confiscate gold. I also own platinum, palladium and a lot of silver. If I have to surrender my gold, it is very important to own precious metals that the government will not come after. I also own some mining shares to further the diversification.
But, if you do own gold, you should strongly consider safely storing it out of the country, out of harm’s way. Recently, I shipped all of my gold and silver to the Miles Franklin International Precious Metal Storage Program in Canada. We also offer storage in Switzerland and Asia through a renewed partnership with BFI Consulting, but I prefer Canada because it is closer to me and easier to retrieve my metals.
You can go to Canada and personally retrieve your metals as long as you have it delivered to a business or a bank (if you have an international bank account, or you may open one in Canada). You can have your metals shipped by Brinks to a handful of U.S. Brinks locations in larger cities (L.A., Miami, Chicago, NYC, Mpls.) or any Brinks location worldwide. They can also be shipped by UPS to our warehouse in Fargo and then we can ship them directly to you. Direct shipment by UPS to the U.S. from Canada is not possible due to insurance and customs. If your metals are stored over seas the costs to retrieve them is huge.
The Miles Franklin International Precious Metal storage facility and your metals are insured by Lloyds of London and audited by Miles Franklin on a quarterly basis. We send two people to the storage facility every quarter and personally inspect every single account. We are so confident in the program that Andy and I store our own personal physical gold and silver with them.
Your storage costs are minimized because you can write off the storage costs against the gains on your taxes.
Here is an article I recently read, and if you decide it is relevant to you, then I have given you some options on how to handle this topic.
To summarize – If gold were to be confiscated, you do not want to own it here in the US. Since confiscation is possible, it is best to diversify and keep your gold stored outside of the US. We have the BEST storage option available in Canada. Really, this is THE BEST option available! We know because we also offer storage in Europe and Asia through BFI Consulting, but prefer Canada. Call us for information on how to do it.