Offshore Storage and Reporting Requirements

Featuring Mark Yaxley

Mark Yaxley of Strategic Wealth Preservation, explains the advantages and tax implications of moving gold offshore, amid greater concentrations of physical holdings as well as concerns over confidentiality and government reporting requirements. These factors have combined to create a wave of interest in offshore storage facilities for precious metals. Filmed on December 7, 2016 in the Cayman Islands.

Published on
27 January, 2017
Topic
Gold
Duration
21 minutes
Asset class
Commodities
Rating
9

Comments

  • RO

    Robert O.

    20 2 2017 03:18

    0       0

    The pluses and minuses of physical gold vs ETFs were reviewed but what about GoldMoney/BitGold type accounts? The cost appears to be similar to ETFs but are backed by a segregated amount of Gold, which can also be converted via a debit card or converted to gold to be sent to the owner.

  • MY

    Mark Y.

    10 2 2017 14:32

    0       0

    Steve - gold represents a very small portion of the global economy, approx. 2%, therefore the incentive for governments to collaborate on a massive seizure operation simply does not make sense, especially a boots on the ground, kicking down doors, type of deal. Just won't happen, at least not on a wide scale. The low-hanging fruit are social benefits, pensions, savings accounts, etc. I do agree however that a kilo gold bar would make an excellent book end.

  • MY

    Mark Y.

    10 2 2017 14:30

    0       0

    Hi Catherine. I would tend to agree with your comments, that government will continue to demand increased reporting in all asset classes moving forward. It's an unfortunate truth as govs become more and more desperate for cash. That being said, I think that gold will continue to represent an option for investors that provides greater privacy than most other asset classes. I sincerely look forward to meeting you in Cayman and continuing our discussion. Lunch is on me!

  • SR

    Steve R.

    1 2 2017 03:40

    0       0

    Surely if the governments around the world get together and decide to confiscate all gold then it doesn't actually matter where its physically stored as its value will be almost totally wiped out! Might make a nice book-end buit little else.

  • CZ

    Catherine Z.

    30 1 2017 22:15

    1       0

    Hey Mark, thanks for the comments. I figured you were speaking about people who report in the US but thought it was good to clarify. It'll be interesting to see if other countries follow this new Canadian approach of requiring all offshore assets including precious metals to be reported to the tax authorities. My hunch is that Canada didn't do this in the absence of any discussions in international forums like the G7 and IMF (it's like when each of these countries quietly passed the exact same domestic bail-in legislation within a couple years of each other). Can't think of any reason that governments suddenly want to collect information on off-shore non-income producing assets other than to get ready to levy a wealth tax (although I'm sure they'll say it's somehow about combatting terrorism). Anyway, thanks again for the great presentation. Look forward to meeting you when next in the Caymans!

  • MY

    Mark Y.

    30 1 2017 14:50

    0       0

    Elizabeth B. - please contact us if you are interested in storing notes. We may be able to accommodate. info@swpcayman.com

  • MY

    Mark Y.

    30 1 2017 14:47

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    Hello Catherine Z. Thank you for the feedback, it's always appreciated. We always recommend speaking to a tax professional regarding your reporting requirements and obviously it would be impossible to provide a blanket answer for citizens of all jurisdictions, since the reporting laws vary for each. The interview was focused mostly on US citizens and I apologize if I did a poor job of clarifying that from the beginning.

  • MY

    Mark Y.

    30 1 2017 14:43

    0       0

    To Will W. Thanks for your comment, we actually have two unique storage options and respective fee structures: 1) safe deposit boxes can be rented on an annual basis for a fixed fee. Each box includes $50k of liability insurance and additional insurance can be purchased at a cost of 0.24% (24 basis points) up to a total of $1M liability per box. Option 2) is Secure Segregated Storage, whereas the investor receives their own industrial plastic bin, and the storage fees are based on a percentage of value, based on metal type and volume stored. I'm happy to report, overall our storage fees are very much in line with Singapore and Switzerland.

  • ww

    will w.

    30 1 2017 02:34

    1       0

    Interesting to note that their storage fees seem to be based on the current (as of what date?) mkt value of the PMs you have them store for you (but NOT the rental of one of their safe deposit boxes, which are fixed based only on size of the box).
    I don't recall details of most of the other sort of 'non-industrial-scale' storage outfits - except for Silver Bullion in S'pore, which charges by the OUNCE, not mkt value. So if/when PMs really get going again, SWP's storage fees will escalate proportionately. :(

  • CZ

    Catherine Z.

    28 1 2017 20:22

    13       0

    Whoa, be careful -- there's some misleading information presented in this interview if you're not a US citizen. It's not true that offshore physical gold holdings are not reportable in one's home jurisdiction (country of residence). Canada, for example, amended its tax legislation 2 years ago to require any asset, "including precious metals", valued over $100,000 to be reported (even if the assets are not income producing and no tax is owed). Failure to do so is a criminal offence and subjects you to serious penalties. My understanding is that this was a recent recommendation of the G7 or G20... so if you're resident in one of these countries you might want to assume that it's coming soon to a theatre near you. (Citizenship is irrelevant unless you're American). Sure looks like part of the prelude to a wealth tax (an idea that has been repeatedly floated in IMF papers over the past couple years). The first stage is to figure out what everyone actually has and where it is... the rest of the writing is on the wall.

  • EB

    ELIZABETH B.

    28 1 2017 08:49

    4       0

    Have you considered storing cash notes as well?

  • WA

    WAYNE A.

    28 1 2017 01:28

    4       0

    Hong Kong is listed as an alternative as others where mentioned. Other than distance there where no plus or minus to those locations. i spoke to the Caymen Island people and it was very expensive compared to everywhere else. Have rates of storage changed. My fear with HongKong is it is part of the People Republic and rule of law is worse that the USA or even Cypress if China interferes.

    Educated but not convinced. I bought an older bank safe and updated and fire proofed it for now.

  • WM

    William M.

    27 1 2017 19:35

    1       0

    Excellent primer. I was already familiar with almost all the info presented but this is great information for RVT viewers who may be considering metals storage. The net has several good companies with facilities in all the main jurisdictions. Cayman offers a nearby location for N. America. I shall be doing a comparison on this location versus the facility I currently use. Great stuff RVT!

  • T~

    Tshort63 ~.

    27 1 2017 15:50

    3       0

    Nice articulation of the industry and why one should consider offshore gold storage. A succinct point of view. Well done.

    @JP V. - there are a lot of solutions in the East and Europe for secure storage. The US though is lagging behind significantly due to the demonization of gold so the most fertile place for making his offer at scales is the laggard. The US = ow hanging fruit for this business model.

  • KT

    Ken T.

    27 1 2017 15:38

    1       2

    For some reason, I can't download either the transcript or the audio. The process does not seem to work as it has with the other videos.

  • JV

    JP V.

    27 1 2017 15:13

    21       7

    A pitty that most interviewees only talk about US citizens - there is a whole planet outside the US for your info