Elderly Americans may long ago have heard the quaint expression “sound as a dollar.” It was a prideful phrase that referred to the strength of the American currency, and you certainly don’t hear it any more.
The sound dollar began disappearing with Woodrow Wilson and the 1912 Federal Reserve Act. Back then, the dollar still purchased 97% of the same goods and services that George Washington’s 1789 dollar did. In 2013 the inflated and depleted dollar will barely purchase you a nickel’s worth of 1913 goods and services.
Put simply, the U.S. government is sinking under trillion-dollar deficits and debt. And realistic people worldwide have turned to gold and other precious metals as a substitute for the dying dollar that Washington politicians still pretend is the world’s ”reserve currency.” Owning physical gold and silver in the form of coins and bullion allows you to conserve your purchasing power as paper money continues to lose its value.
Since Nixon severed the dollar from its last gold backing in 1971, the value of gold against major currencies (including the dollar) has remained strong. And not only does owning gold help you protect and diversify your wealth…if you own it the right way, you don’t have to report it to the IRS or the U.S. Treasury.
Under current U.S. reporting laws, if you hold gold—or any other precious metal—in an individual, U.S.-citizen’s name, you do not have to report it either to the IRS (under the Foreign Account Tax Compliance Act— FACTA—on IRS Form 8938, Statement of Specified Foreign Financial Assets) or to the U.S. Treasury (on Form TD F 90- 22.1, U.S. Treasury’s Report of Foreign Bank and Financial Accounts, known as FBAR).
So how you own your gold is important. For instance, if the title of the precious metals is held in the name of a legal entity, such as a corporation under your control, it must be reported. And where offshore you store your gold is another factor to consider. If the gold is held in your offshore bank or financial institution—for instance, in a bank-provided safe-deposit box—it is reportable.
If it is held in a non-bank vault or storage company instead, it is not reportable. This brings me to a question I’m often asked: “How and where can you safely purchase, ship, and store gold and other precious metals?” This is really a question about whom to trust.
If you are new to gold, you should review this information. If you now own gold in the U.S., you may want to cash it in, and then buy gold offshore and store it there. This lets you avoid the hassle of shipping gold abroad and possibly having it confiscated by sticky-fingered U.S. Customs agents. (There have been several such grabs in recent years.)
One solution for U.S. persons may be found at one particular U.S. precious-metals specialist that both sells precious metals in all forms and provides Canadian vault storage that is not U.S.-reportable. For details on whom to talk to there, and for other non-bank storage facilities, are included in my full article on this subject, instantly available to you when you subscribe now.