We’ve discussed at length the importance of owning precious metals. The financial system is full of insolvent banks and bankrupt governments, and gold is one of the few assets that you can own, which is not simultaneously somebody else’s liability.
Now, there is no shortage of products out there to buy gold. All you have to do is log in to your discount brokerage account and buy some ETF shares. But doing so almost defeats the purpose of owning gold, to begin with.
Gold is a safe haven. It’s an ‘anti-currency’ and proxy against the financial system. The more perilous bank and government balance sheets become, the more attractive gold becomes because it carries none of these risks.
But if you ‘invest’ in gold through the financial system– futures, ETFs, etc.– then you’re taking all of those risks. You don’t get the safe haven benefit this way.
Instead, the best way to own gold bullion is to buy physical. Specifically, buy recognised physical coins and bars. Examples include one-ounce Canadian Maple Leaf coins and ten-ounce Credit Suisse bars. The market for these is well-developed and HIGHLY liquid worldwide.
If you live in a bankrupt Western Nation, it’s also important to consider storing your physical gold abroad in a safer jurisdiction. After all, the history of our own ‘free societies’ tells us that insolvent governments routinely resort to plundering citizens’ wealth in a desperate attempt to make ends meet.
Storing gold in a safe, stable jurisdiction out of your home government’s reach is one of those things that makes sense, no matter what. With the right storage partner, there’s very little downside to doing this. And, should things become difficult in the West, it will prove to be an exceptionally smart move.
Singapore stands out as one of the best places in the world to own and store gold. Here’s why:
1) It’s one of the safest places on the planet. There’s practically zero crime.
2) There’s no corruption either. Singapore is one of the most transparent places in the world. If someone doesn’t abide by the terms of a contract, for example, any foreigner could get a fair hearing in court to enforce the contract.
3) Singapore is optimised for business and investment. Taxes on income and profits are low. There is no capital gains tax. It’s quite easy to set up a company. And practically every nationality in the world can travel here visa-free.
4) It’s stable and growing. This is not some fledgling third-world country that has a coup every other Tuesday. Singapore has long been one of the wealthiest places in the world per capita, and it has a very, very bright future as one of the world’s largest financial centers.
Singapore recently made it even easier to store gold here, dropping the sales tax on investment-grade precious metals. For gold, this includes the Maple Leaf, Buffalo, Kangaroo, and Panda. US Eagles and South African Krugerrands are not included as their purity is too low. Silver Eagles, however, qualify for tax exemption.
Singapore’s recent surge in gold reserves has garnered the interest of global financial markets. Establishing itself as the leading single gold buyer in the first quarter of 2023, the country experienced a notable increase, acquiring an additional 69 metric tons of gold—an impressive 45% surge compared to its holdings at the conclusion of 2022.
This strategic maneuver has propelled Singapore’s gold reserves to a milestone of 222 metric tons by the end of Q1 2023, marking the highest level ever recorded since the nation’s independence.
Singapore currently holds the position of the region’s second-largest holder of gold reserves, trailing only behind Thailand with 244.2 metric tons. On a global scale, Singapore’s gold reserves are ranked 24th, surpassing larger nations like Brazil, Sweden, Australia, Denmark, and South Africa.
This notable increase in gold holdings has generated curiosity, prompting questions about the motives and implications of Singapore’s decision to strengthen its gold reserves.
As global interest in Singapore’s gold reserves grows, it reflects a strategic move that has positioned the nation as a major player in the precious metals market.
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