Physical Gold is the Ultimate Investment

Physical Gold is the Ultimate Investment

10/01/2014 - 2:34 PM
Physical Gold

Physical gold has served as the universal currency for 5,000 years and will continue to do so long after We the People, and this nation of ours, have ceased to exist.

Physical gold is also the only reliable hedge against political instability, government debt, and inflation.  It is a borderless currency whose value comes from supply and demand, not how ever much the government decides to print.  It’s not based on a government promise or regulation, but is a physical precious metal.

Need proof?  Physical gold has the highest liquidity value in the world.  You can exchange it for cash in any major city in the world, and at just about any time of day.  If you hold your gold outside of the reach of Uncle Sam, you can access it at any time, and exchange it for local currency, or goods and services, with minimal effort and at a guaranteed rate.

And gold thrives during inflationary times.  Not if, but when, the United States and the U.S. dollar go through a revaluation, it will be physical gold that soars and where everyone is rushing to.  Don’t be the sheep.  Invest outside of the U.S. in physical gold now, while prices are low and access is assured.

* Note that I write about physical gold because I believe in its value and the need to diversify abroad.  Premier doesn’t sell gold and we are not investment advisors.  We can introduce you to firms in Panama and Switzerland that can assist you, but we earn no commissions or other income from these transactions.  My advice here is independent and without financial motive.

More importantly, the price of physical gold is not dependent on investors or the markets.  In fact, investors accounted for only 16% of the gold supply in 2013 (World Gold Council).  The largest mover was consumer demand at 51%, then reserve banks at 17% and industry use at 12%.

If you’re like me, you start your day by watching the financial channels (I go with CNBC).  The news is often hostile to gold and gold ownership as an investment class.  They are too busy pushing viewers towards the U.S. stock market… it is at all time highs don’t you know!  That means it’s time to buy!!

Well, regardless of this BS, and the industry news you get from the brokerage firms, the investment in physical gold (not paper gold), remains strong.  I suggest that physical gold is one of the most important elements in your onshore or offshore portfolio.

The demand for physical gold has never been higher.  TV viewers would be shocked to learn that investment in 2013 was up 28% from 2012… some people must know something the talking heads on TV don’t.

This represents about 44% of the total gold market of $170 billion and compares favorably to the paper gold market for exchange traded funds, which saw a loss of $40 billion.  That’s to say, $40 billion moved out of paper gold and in to physical gold in 2013.  There is now more money in physical gold than in ETFs by a factor of 8 to 1 (the last two paragraphs are according to the World Gold Council).

What you will find in the industry is that paper gold and hypothecation of gold is manipulating the price… pushing it down.  If these are eliminated from the market, such as during a realignment of the dollar or demand in gold because of hyper inflation, the price of physical gold will skyrocket.

* This is because gold doesn’t correlate to any investment class.  It went up in value during the 2008 recession.

You will also see that those who invest in physical gold take the long view.  They recognize it as the ultimate hedge.  Buyers see it as a superior asset allocation… not just seeking to buy low and sell high, as is attempted in the EFT market.  Investors in physical gold buy to provide support for their other investments.  The price they buy in at should be of little consequence.  Yes, it’s low today, but if it were to double in the next few months, my advice would be the same:  buy physical gold and hold it outside of the United States.

That’s right, you can buy physical gold offshore.  It can be held in a vault or you can take possession.  We work with a number of offshore providers and will be happy to make introductions.

You can even purchase physical gold in your IRA.  You first form an offshore LLC in a country like Belize, or a Panama Foundation, and move your retirement account in to that structure.  From there, you can write the checks and make any permitted investment you like… which means you can buy physical gold in Panama and hold it in a vault.

* You can buy gold in an onshore or offshore IRA LLC structure, though we only offer international formations.

Once you have physical gold in your IRA, you can take required distributions in gold, rather than cash… keeping the investment in gold without the need to convert to cash.  If any tax is due (traditional IRA rather than a ROTH), you will need to make those payments with good ole American greenbacks.

In fact, about 50% to 60% of our clients now take distributions in physical gold rather than USD.  This is becoming one of the most interesting uses of offshore IRA LLCs, and one of the highest demands, in the industry.

Physical gold will also allow you to maximize privacy and asset protection.  Gold held in a vault outside of the U.S., and outside the reach of the U.S. courts, has little risk of being seized by an aggressive creditor.  More importantly, you are not required to report physical gold held in your name.

While you have probably heard much of the new IRS laws that require just about anything you have offshore to be reported to the U.S. government, physical gold is exempt.  You may hold gold in an offshore vault and are not required to report it to any agency.

From here, you can pass physical gold down to future generations, keep it outside of your U.S. estate, minimize estate taxes, and do as you like without interference from the IRS or creditors.

I hope you have found this post on why physical gold is the ultimate investment interesting.  For more information on taking your retirement account offshore, or buying gold in Panama, please give us a call or send an email to  We will be happy to work with you to structure your affairs in a tax efficient and compliant manner.

I think you will find physical gold to be a unique and valuable addition to your international portfolio.  I also believe the price is set to jump.  Quantitative easing, and other factors, have been holding down the price of gold since 2011, but this is going to change.  QE will be stopped this month and a number of forces are coming to bare on the U.S. dollar (take a read through my posts on the USD vs. Russia and France).

When the flooding of markets with cash, the artificial support received by the U.S. stock market, and other fakery ends, we’ll come back to physical gold.  It will increase in price and we will all benefit from our offshore portfolios.  Remember that physical gold is where the stability lies.  It is the one and only hedge against a significant market correction or currency realignment.

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