A lot of emphasis is placed on gold bullion dealers that offer storage solutions outside of your country of residence, but few first-time investors seem to grasp just why this is important. After all, wouldn’t it make more sense to store it in your own country, where the laws apply both to you and your investment, and where that investment should be safe? Unfortunately, it’s not that easy. The truth is that you are much better off using a precious metal storage company like GoldBroker, one that will hold your bullion in a vault outside of your country (usually in Canada, Switzerland or Singapore), and away from the control of any central banks. And in this article, we’ll tell you why this is beneficial to you and your investment.
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The Main Benefit to Storing Gold Outside of your Country
The main benefit to storing gold outside of your country, is that the government can’t get their hands on it. No one really trusts the government, but people are still considered to be paranoid if they express their concerns. After all, the government may be corrupt when it comes to war and foreign policy, but they have their own peoples’ best interests at heart, right? Well, not really. And you only need to look to places like Greece and Cyprus to see that.
When the Cypriot economy collapsed, many people discovered that they couldn’t access their own money. This was all stored in local banks, banks that were supposed to be safe and backed by the government, banks that were supposed to be holding onto their money for when they needed it, but that wasn’t the case. In Greece, residents were told that, regardless of how much money they had in their account, they could only withdraw a few hundred Euros a day. This was their money, not the bank’s and not the government’s, but the latter wanted to look after the former, and they did so at the expense of their people.
If you invest all of your money in gold and store it in a central bank, only for the economy to collapse, then there is nothing stopping the government from confiscating your money and keeping it for themselves. Just as there is nothing to stop them from declaring that you can only withdraw small amounts every day, as they did in Greece, or that you can’t access it until they say you can, as they did in Cyprus.
By storing your gold with someone like GoldBroker, you are putting it out of reach of your government, and of every other government. It is yours, as it should be, and regardless of what happens to your country’s economy or the world’s economy, it will still be yours.
Other Benefits about Storing Gold Away
There are a few other benefits to storing gold outside of your country with a service like GoldBroker, including:
- Tax and VAT: Your government may also add sales taxes or VAT to your bullion purchases, making it hard to invest and to profit from that investment. However, if you’re not shipping that bullion in, and you’re using a storage company instead, then you don’t need to pay these fees.
- Instant Profit: With storage companies, you can simply move the gold to a vault upon purchase, and then sell it back to them when the price of gold increases. This means that you can profit without ever touching or seeing your investment.
- Low Margins: Because there is no need to ship or display the bullion, storage companies can limit overheads and sell for close to spot price.
Conclusion
If you are investing in bullion because you are concerned for the future of your country and of the world, then you really need to keep that bullion out of reach of your government. But even if not, this is still something you should consider, as it could be the difference between you profiting from your investment and you losing everything.