This past week Julian Phillips put out a 5 part series on the future potential of a Gold confiscation in the U.S.. I personally am on the fence as to whether or not this will happen. On one hand both Jim Sinclair and Richard Russell (two very wise men) don’t believe this will happen, others, many others, do. My personal view is that we as a nation are spiraling down a rat hole, losing (and giving up) our God given rights and liberties every day. When a society begins down this path anything becomes possible and what was previously thought impossible can become the “norm” over night.
Whether a confiscation occurs or not there are some things that you can do ahead of time. First you can diversify. You can (and should!) own some silver and platinum which will retain purchasing power and probably even gain in real terms versus other “goods.” I cannot see these being confiscated as Silver is “too bulky” (at the current prices) to make it worth government time and platinum is just too scarcely held to bother with. You can also trade your Eagles, Maples, Kruggies, etc. in for pre 1933 Liberties and St. Gaudins as these have “numismatic” values and very well may be considered part of your “coin collection.” The 1933 confiscation exempted “numismatics” so this may be a protection. As recently as 5 months ago you could basically swap Eagles even up, now the premium is 12-14% to do this and may be something to consider.
Next you must consider “where” your metal is held. Do you dig a hole in the back yard or keep it in a safe deposit box at a U.S. bank? (whatever you do… DO NOT do this!) I have always been an advocate of having your Gold in several places. A very small amount on hand personally and the rest held outside of the U.S.. You can choose Canada (Miles Franklin can help in this regard as they provide storage through Brinks in Montreal). You can choose Switzerland which I believe is an excellent choice but it is becoming harder and harder to do this as Swiss institutions are turning U.S. clients away because they don’t want to deal with IRS meddling and regulations. If you decide this route, Miles Franklin also has a relationship to provide storage in Switzerland. You can also choose Singapore which is fast becoming a magnet for Gold looking to be stored. My point is this, DIVERSIFY your storage even if decide to go out into the woods and dig several holes, diversify where it is held.
I preface what follows by telling you that I am not an attorney nor an accountant and that what you read is not in any way tax advice or legal advice. As I understand it, “international trusts” are still legal to be drawn up. The slang for international trusts is “offshore trust” and I’m sure you have heard of these. They are quite expensive to have drawn up but they do offer benefits as I understand them. I believe they shelter your assets (that are in the name of the trust) from legal liability that you incur personally. You are the beneficiary of the trust but cannot get at the assets without the signature of a “protector” (of your choosing AND who you may replace if you wish at any time for any reason). You also must have a “trustee” for the trust who “registers” your trust each year. They also coordinate and deal directly with your institution or vault, YOU personally cannot have contact with the institution and they may not act on your say so. The trustee must perform all actions and ONLY after a signature by the “protector” of the trust. As I understand these, ONLY the IRS or equivalent tax agency who must show tax fraud or evasion is able to break in to an international trust and claim assets. A lawsuit from anyone, institution, for any reason (unless against your trust directly for actions BY your trust) do not have standing.
Again, I am not an accountant or a lawyer so consult your own to confirm this but as I understand it… IF a Gold confiscation were to be ordered and your Gold is held in and by an international trust, YOU personally as an American citizen DO NOT own the assets. I think that you could legally sign any form placed in front of you swearing that you personally do not own Gold and do not have any to be “turned in” as an American citizen. I do believe that you need to declare the account and the value each year but as the assets are not “owned” by a U.S. citizen they likely could not be confiscated.
As a final comment I must say that having to go through this thought process in the first place is beyond stupid. We are talking about assets accumulated legally and honestly, yet we must worry about “OUR” government taking them away. Our world is changing (definitely for the worse) very rapidly and the life in which we grew up with is fading fast in the rear view mirror. You can now be arrested and locked up indefinitely without any rights or even the right to consult an attorney. You can be assassinated at the whim of one man and in the “safety” of your own home. Your Constitutional right to own a firearm is under attack and if you have more than a week’s worth of food in your home you can be considered a terrorist. The world has become a very scary place and the last bastion of “freedom, liberty and justice for all” is now unfortunately being thought of by her citizens as a place to “escape” from. Which begs the question… WHERE TO? Another story for another day.