New Zealand is seen as a safe, low risk, low corruption location, with a stable government. It is therefore seen as an excellent place to buy and store gold and silver. For these reasons we get expats, and also foreign citizens from the USA and Europe, looking to buy and store precious metals in New Zealand.
But what about for New Zealanders themselves?
Should you also look to store some precious metals offshore and outside of New Zealand too?
If New Zealand is seen as so safe and stable, is there any need for the average Kiwi to consider offshore gold and silver storage?
4 Reasons for New Zealanders to Store Gold and Silver Outside of New Zealand
If we look at the reasons to hold gold and silver offshore, they actually all apply to anyone anywhere in the world. It’s just that some countries may have higher risks than others.
Here’s a few of the reasons for New Zealander’s to hold some precious metals outside of New Zealand borders:
- In case of government confiscation. Granted this has never happened in New Zealand (see this article for more on the possibility of gold confiscation in New Zealand. And see this article for more general thoughts on the topic globally). But just because it hasn’t doesn’t mean it’s an impossibility.
- In case you were frivolously sued. Then having some assets offshore would put them out of reach of creditors. As courts in your home country don’t have jurisdiction in places like Austria, Hong Kong, and Singapore. These nations have their own laws, courts, and financial rules. So it makes sense to have some assets that your government or creditors can’t reach.
- In a worst case scenario of social unrest. Again this may not seem very likely in little old New Zealand, but should the worst happen and social unrest came about as the result of currency collapse, bank runs, food and electricity shortages. Then you would be glad to have some assets held in another place you could escape to.
- To avoid capital controls. Holding gold and silver offshore could preempt capital controls. Back in March a reader pointed out how pending new financial reporting rules in New Zealand could just be a first early step in capital controls. That is the government imposing limits on how much currency can be sent outside of New Zealand borders. The best way to avoid any capital control is to already have capital outside your home country.
So it makes sense to diversify your political risk. But of course first and foremost make sure you’ve got some gold and silver within “arms reach” at home too.
The Next Thing to Consider is Where to Store Gold and Silver Outside of New Zealand?
We’ve identified that the best location for New Zealanders for offshore precious metals storage to be Singapore.
- Singapore is one, if not the best place to invest and do business in Asia. Everything is much simpler in Singapore. There is minimal regulation to worry about. It consistently features at the top of the low corruption rates globally. Plus its tax structure is very friendly to businesses and investors.
- Prices for gold storage are extremely low. Plus Singapore has some top class state of the art storage facilities like the Le Freeport.
- Proximity to New Zealand. Well it may still be an 11 hour flight but certainly closer than other preferred jurisdictions for precious metals storage like Switzerland and Austria. But we reckon better to not be in a very closely aligned country to New Zealand like Australia, but still be on a single direct flight route.
- No need to visit to buy and set up storage in Singapore. Precious metals can be bought from here in New Zealand and storage facilities can also be set up remotely.
“Singapore has many advantages… It’s completely liquid, completely trustworthy, and completely neutral.”
– Jim Rogers
Singapore Precious Metals Exchange is Our Preferred Option for Storage in Singapore
GoldSurvivalGuide has recently become an approved broker for the Singapore Precious Metals Exchange (SGPMX).
Why Did We Choose SGPMX?
SGPMX has some of the lowest cost fully insured allocated & segregated bullion storage you will find globally. For silver a maximum of 0.7% per annum. For gold a maximum of 0.5%.
So you can be sure your “wealth insurance” is also actually insured.
Here’s just some of the other reasons we’ve selected SGPMX:
- Full insurance – Cheaper and safer than storing at home
- Dedicated Holdings – Your exact assets are segregated
- Asset Transfer Service – Send bullion you already own
- World class facility – Take a tour and be wowed at: SingaporeFreeport.com
- Low minimums – Start with as little as 1oz of gold or 100oz of silver
- Zero western ownership – Geographically diversify your holdings
- Gold collateralisation – Stay vested in gold but ability to borrow against it
- Safety Deposit boxes available – Direct keyholder access to your holdings
“…free your assets from the Western world financial system, without exceptions.”
– Jim Sinclair, Executive Chairman of the Board for the Singapore Precious Metals Exchange.
You can visit their website to learn more about SGPMX: sgpmx.com
Then call us on 0800 888 465 or contact us to discuss how storage at SGPMX works and the different options available.
For more on this topic see: Gold and Silver Storage Options