Georgetown Trust Blog

This is How to Hold Gold and Silver Offshore

Posted by David J Drummond on Apr 24, 2019 11:55:47 AM

Gold & Silver InvestingMany are familiar with the history of past governmental confiscation of gold, silver, heirlooms, and jewelry. These types of occurrences spurred holders of such valuables to move them to multiple international locations.

While holding precious metals like gold and silver offshore is not a new concept, it is gaining in popularity. Offshore storage of precious metals such as gold and silver is beneficial for many reasons, one of the biggest being risk mitigation.

Here we’ll take a deeper dive into how, why, and where to store gold and silver both on and offshore.

Gain Wealth Through Gold and Silver

There's no question that buying precious metals is a smart choice for asset diversification. That's especially true when you consider that the gold standard no longer exists in the United States.

Since most currencies are not backed by gold and silver, they are good to have in case of economic or governmental downturns.

Another way to view gold and silver is as an instrument to store wealth. When viewed this way, you'll quickly realize that it is an incredibly effective means of retaining wealth.

If you have concerns about holding all your wealth in a single currency or even in a single economy, precious metals can be the solution.

Gold and silver both hold value well, especially when compared to other forms of currency that can fluctuate a lot over time. That means that precious metals provide a security net of value that can withstand the test of time.

Gold and silver have been valued for thousands of years, and that trajectory will almost certainly continue for thousands more.

Options for Holding Precious Metals 

Once you've established that holding gold and silver is a good idea, you'll face the all-important question: Where should you hold your precious metals?

The short answer to that question is that there is no short answer. There is no one perfect place for storage, nor should you ever attempt to hold all your gold and silver in one location.

A good rule of thumb is to have some precious metals within arm's reach. That means having some in your own home or even on your person so that it’s accessible easily and immediately.

Then, hold some precious metals within a car's reach. This might mean keeping some gold and silver at a local bank vault or other secure location where you can access it expeditiously should the need arise.

Finally, keep some of your precious metals within no one's reach. Maintain some of your gold and silver safely offshore.

This redundancy ensures that your assets are diversified. Going overseas to collect your stored precious metals might seem like an inconvenience, but the protection is key.

If you ever get to the point where you truly need to collect your gold and silver in a remote location, then you might have bigger problems to worry about. In that case, you'll be glad that these assets are far removed from your primary residence.

Buying Precious Metals with a Self-Directed IRA LLC 

Having an SDIRA, or self-directed IRA, opens a lot of doors regarding what you can hold within the IRA and where you can store it. However, there are still some limitations.

Even with an SDIRA, you can only hold precious metals if your custodian is also the holder of the gold and silver. Unless you've specifically chosen an IRA custodian who is also a gold and silver holder, that won't be a viable option.

Fortunately, an alternative is through an SDIRA LLC. Your self-directed IRA can own the LLC, and the LLC itself can purchase and hold precious metals.

In this way, your IRA doesn't actually hold gold and silver, but it does hold a company that holds gold and silver. If your LLC is the holder of precious metals, it can also hold and store those precious metals overseas.

All of this is legally permissible since a third-party, the LLC, is handling the transactions. Although this might sound complex, it is a straightforward method to work around the limitations of buying precious metals with a more traditional IRA.

What Kind of Precious Metals Your IRA Can Hold? 

By now, you realize that there are rules in place about what you can hold in any IRA.

Gold jewelry, for example, won't qualify. The same is true for art or antiques. Although gold and silver jewelry are prohibited items in an IRA, you can hold pure gold and silver.

To qualify, the gold or silver you purchase must be .9999 pure, and that's true whether your IRA custodian or your SDIRA LLC is the holder of these metals.

Look for all four nines (.9999) to ensure the purity and legality of any gold or silver you want to include in your IRA.

Expand Your Financial Portfolio

Acquiring precious metals such as gold and silver is another viable way to expand your portfolio. Just like other assets in your financial portfolio, utilizing offshore options for investing and holding precious metals is a preferred option to mitigate risk.

Georgetown Trust in Belize has helped individuals with their offshore financial planning and investment options for 20 years.

Contact one of our financial experts to discuss holding gold and silver or other offshore services.

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Topics: Self-directed IRA, Gold and Silver