Q: Since both the US and Canada have all the paperwork for capital controls already in place, I wondered if precious metals stored at Brinks in Montreal by a US citizen would be safe from confiscation. Usually Canada seems to go along with what the US government wants to do, so do you feel storage there is safe? Some (like Casey Research) feel that Singapore or the Cayman Islands are the only really safe places for US citizens to store their metals. They mention Swiss storage as well.
Thanks in advance for your thoughts on this. And thank you for all the first class information you provide for those of us who are hanging on to our precious metals through very hard times.
Best Regards, Pat
David Schectman’s Answer:
When gold was confiscated in 1933, a bank holiday was declared and safe deposit boxes were locked down and could only be opened in the presence of a Treasury official. All the gold was confiscated and the owner was reimbursed at the then current rate of $20/double eagle. I do not recall the government ever going after private depositories or searching people’s homes.
If the government does decide to confiscate gold, it will be directed at the large concentrations like GLD, and bank safe deposit boxes. I do not expect the government to go after gold in non-bank depositories. Especially if the gold is not even in the country.
It is highly unlikely that the Canadian government would confiscate property belonging to a foreigner. Anything is possible, but I still believe Canada is a better choice than here in the U.S. Also, it is close enough that, in a pinch, you can always drive to Canada and make arrangements for delivery or have the gold liquidated at a very high price. You will not have any difficulty bringing cash back into the U.S. Or you can have the funds wired to your banks.
If you prefer Switzerland, another good choice, we can help you store your metals there as well.
Singapore and the Cayman Islands are too remote for me. But, as I said, any place is better than here because this is your crisis insurance and you want it out of harms way.
Q: Hi Andy,
I’m a regular buyer of precious metals and I love listening to you on the various podcasts. I wanted to ask you to explain the perceived discrepancy between the reports of short supply and delayed shipments vs my experience of multiple dealers having no apparent shortage and indeed, offering specials and sale opportunities almost every week for the last year or so. It won’t change my position either way as I have been around for a while and have learned to hold tight. But one of my employees, whom I have been trying to bring in to the fold brought it up and it makes him hesitant. Is silver really short or is this a sales gimmick?
Steven R Smith
Andrew Hoffman’s Answer:
As I wrote this morning, the only possible place there is “no apparent shortage” is in very small lots (say, 100 ozs or less), in which there is always a high turnover. However, what Andy and I discussed in last Thursday’s podcast could not be more dead on. I mean, heck, August was Miles Franklin’s second best month ever (the first was May 2013, just after the April 2013 “alternative currency destruction” paper raids) – and it was all fueled by silver sales.
Furthermore, look at this astonishing chart of what physical premiums are doing right now. I.e., skyrocketing, with a 2008-like shortage clearly a material possibility.
We are experiencing large, long delays for popular products; and at this rate, it will be all products soon. At which point, NOTHING the Cartel does will be able to hold down prices.