The 5 Best Jurisdictions to Store Gold and Silver
Top 5 Jurisdictions to Store Gold and Silver
Physical gold and silver, as well as other precious metals, in coin, bar, ingot, tael, and any other bullion form, has been an important part of prudent investors’ portfolios for generations. It offers immediate liquidity and great diversification unlike other assets while protecting wealth to ensure investors’ and their families’ financial health for generations to come.
Owning such precious metals provides financial stability beyond other investments, and part of this peace of mind comes from storing your holdings in the best location possible. If you have substantial holdings, a home or office safe may not be the most secure location, and you may face issues with insurance and with chain of custody when you need to authenticate your bullion for future transactions. Furthermore, to keep your physical gold or silver safely secured and yet accessible, you need more than a safe deposit box at the bank around the corner as they will most likely not insure items kept in them.
J. Rotbart & Co. recommends private vaults as the best option for your bullion bars or coins in the following jurisdictions to be discussed in this article. Why store precious metals offshore?
Gold Vault in London
Why store precious metals offshore?
There are many reasons why private vaults in certain offshore locations are the best choice for your physical gold or silver storage. While each individual investor may have specific needs for their storage location, there are some general criteria that should impact all decisions. You may want to choose a vault in another country than where you currently reside for physical diversification. As you choose investments in different countries, you may want to store your precious metals in different locations as well.
For the country selection, you may want to consider how liquid that country’s precious metals market is. Those jurisdictions that are amenable and active in trading will likely have a well-established storage sector as well, usually with the latest in safety and security features. Furthermore, this may mean that there is already a good logistics infrastructure in place for you to move your holdings when needed. If you are moving gold or other precious metals into or out of a country, it is also helpful if their tax and import/export regulations are friendly to bullion investors. That is, minimal or no taxes as well as minimal bureaucracy for personal asset transportation.
Specifically to private vaults – they are often equipped with security that surpasses that at traditional banks. Furthermore, they typically anticipate the needs of precious metals investors, such as offering insurance coverage and authentication through chain of custody verification. They also have processes in place to allow you access to your holdings, so that you can liquidate or transport them whenever you need. No need to wait for the bank to open.
Top Jurisdictions to Store Gold and Silver
As we have discussed, there are many criteria to consider when deciding where to store Gold and Silver, and other precious metals, in addition to diamonds, jewellery, fine art, and any other valuables. J. Rotbart & Co. recommends this list of the top jurisdictions to store precious metals worldwide.
Switzerland springs to mind almost immediately because it has historically been, and continues to be, a safe haven jurisdiction for investors and institutions alike. As one of the world’s largest gold exporters, it is home to some of the most reputable refiners and has an unparalleled reputation in the global precious metals market. The Swiss themselves are known as precious metals investors too, so the country has a well-established system for storage, including secured facilities in a few different cities. Furthermore, Switzerland is renowned for its neutrality in political and financial matters, and it has extremely investor-friendly data privacy laws to protect you from unwanted scrutiny. In addition to this well-earned reputation as a centre for trading and storing physical precious metals, Switzerland also allows the free flow of currency into or out of the country. This means there currently are no limits to how much you can bring in or take out, and you can do so without having to declare these assets to the authorities.
Gold Vault in Hong Kong
Hong Kong has a long and storied trading history that has developed further into the region becoming a major international financial center. The wealth management sector in Hong Kong is quite advanced, so there is an intrinsic appreciation for holding physical precious metals. Hong Kong is also Asia’s leading precious metals hub, with many refineries operating in the city. Gold can easily be brought into and out of the city, and as a major global transportation hub, there is a solid logistics infrastructure you can rely on, with many private vaults conveniently located near the airport or the city center.
Hong Kong holds 2.08 tonnes of gold reserves, providing citizens with confidence to hold gold. Furthermore, the colour gold in Chinese culture is traditionally a sign of prosperity and fortune where you will often see it paired with the colour red for special occasions and gifts. The colour gold is considered most beautiful and it represents freedom from worldly cares, which is why it is also often used in Buddhist temples.
Singapore is another major global financial hub in Asia where you can choose to store gold and silver. It has famously low crime rates which may translate to lower insurance premiums for storage. Singapore offers a “neutral” location for investors and institutions to store their precious metals and wealth. With its world-class physical infrastructure, Singapore is well placed to accommodate this demand. Its innate attributes of neutrality, economic and political stability, excellent connectivity, and reputation as an important financial centre have long appealed to global investors.
In addition, Singapore has a strong, efficient, and transparent legal and judicial framework, as well as a strong rule of law. The Singaporean government is also not just business and investor friendly, but it is actively promoting the country as a precious metals hub, meaning that there are no taxes on precious metals bullion and an ease to trading, transporting, and storing gold and silver. Furthermore, not only can your holdings move relatively freely in and out of Singapore, but many nationalities can travel easily to Singapore as well, either visa-exempt or with a simple visa application process.
J. Rotbart & Co. offers two secure storage facilities with convenient locations in Singapore. One is in the city center, and the other is the Le Freeport, located by Changi Airport. Both feature state-of-the-art technology along with maximum security to secure any valuables for clients worldwide.
Maximum Security Vault in Singapore
Germany is another ideal European location to store gold and Silver, where they currently hold 3,362.4 tonnes of gold along with a politically and economically stable government that promotes investment. Germans are generally known to be risk averse relative to private investors in other countries, which makes the stability of precious metals attractive to them. The German government also sees gold especially as an investment asset, so there is no VAT or capital gains tax on purchases.
With this foundation, there is also a significant precious metals storage system in Germany, and as a major trading hub, you will find a robust transportation infrastructure when you need to move your holdings into or out of the country, especially as Frankfurt’s air cargo airport is a major European hub for reputable international bullion dealers. This year, Germany purchased more than 90 tonnes, topping the list of European countries to do so, and their physical gold demand picked up to its highest levels since 2009. With current inflation fears and uncertainty, Germans seem to have a positive outlook for physical gold next year.
The US has had a love affair with gold since the first gold rush in the late 1820s, with a wealth of precious metals dealers supporting investments and trade. Investors in the US and around the world actively collect and trade the American Gold Eagle and Gold Buffalo coins, while the US was the 4th largest gold producing country in 2020. The country also has the largest stockpile of gold reserves in the world, nearly as much as Germany, Italy, and France combined, with the majority currently residing in Fort Knox, known as one of the most secure locations in the world.
With such an appreciation of gold and precious metals in the United States, the world’s largest economy also has a vast system of highly secured vault locations in major precious metals hubs, from New York City to Salt Lake City, with access to a broad infrastructure to facilitate moving your gold and precious metals into and out of the country, usually duty free.
Clients of J. Rotbart & Co. can request any of various vault locations to store their precious assets, such as New York City, Salt Lake City, Los Angeles, Dallas and many more.
Fort Knox Bullion Depository in U.S.A.
Let J. Rotbart & Co. Store Gold and Silver and Your Precious Metals
J. Rotbart & Co. offer a comprehensive range of storage and transport options featuring vault facilities with the latest in security technology for your peace of mind. We can facilitate transporting and storing your precious metals around the world, including the countries listed here and other locations, by tailoring the right solutions to meet your precious metals needs. Contact us today to find out more.