by Ted Bauman, GoldSeek:
Which would you rather have — a briefcase full of cash, or a briefcase full of gold?
These days, the answer is clear: We’ll take the gold, please. No matter the ups and downs of the market price, it’s still the one thing guaranteed to have value when all else fails — as it must, one day.
But where to keep it? Traditionally, gold bugs focus on beating thieves and safecrackers. (Indeed, a strong home safe is an essential part of any wealth preservation strategy.) But there are other things to worry about too, which is why it’s so important you learn how to hold gold offshore … such as whether Uncle Sam needs to know about your offshore gold stash under requirements like the Report of Foreign Bank and Financial Accounts (FBAR) and the Foreign Account Tax Compliance Act (FATCA).
The answer is no, he needn’t … but only if you own and store your gold in a specific way. Protect against a greedy Uncle Sam by learning how to hold gold offshore.
A Financial Account by Any Other Name
Most people are now aware that foreign financial accounts are reportable to the IRS under FATCA. Both you and the foreign financial institution are obligated to report the details of any offshore accounts if their aggregate value exceeds certain thresholds.
But what about precious metals, like gold? It depends … on the meaning of the term “financial account.”
The easiest way to get your head around this is to ask two questions:
- First, is the institution that has your gold a bank (as in a safe deposit box)?
- Second, if it isn’t, do you have to pay “fabrication” fees before you can go and get your gold from storage?
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