Most precious metal investors are not coin collectors or gold standard fanatics. They simply want to convert their ounces when the time is right into something useful. Such as:
- Income producing assets like a business, real estate, or an interest-bearing deposit account;
- Cash flow to fund retirement or expenses.
However in our view countries with highly indebted and deficit-prone governments will inevitability attempt to seize privately held precious metals, either through excessive taxation or other arbitrary legal means.
We wager they’ll also make it exceedingly difficult to internationally transport large quantities of precious metals outside the country. Bottom line is governments with a funding crisis will need to tax you as much as they can. (Look, let’s not pull any punches; the US, UK and most of eurozone will absolutely hammer you with special ‘windfall’ taxes on your gold and silver gains).
Now is the time to figure out how to internationalize yourself. In other words, you’ll want to be tax resident in a ‘precious metal friendly’ country when time comes to sell your precious metals and realise a capital gain.
But what does ‘precious metal friendly’ look like?
Well, it’s actually quite straightforward if you think about it. Precious metal friendly countries make ownership, storage and transportation easy. They tend to have fiscally responsible governments (often with substantial gold reserves), citizens with high savings rates, strong property rights, and most importantly they impose little or no taxation on gold and silver.
It doesn’t hurt either if it’s a pleasant place to live and easy to obtain residency. In reality, most countries fall into an ambiguous area somewhere between being friendly and un-friendly.
Top 5 precious metal friendly
Undoubtably we have omitted a country from our top 5 that better suits you personally. For example, many countries in Latin America and Scandinavia are definitely considered precious metal friendly. Feel free to add comments below if you feel somewhere deserves an honourable mention. Hey if convinced we’ll even re-do our Top 5!
Without further ado, *drum roll*.. the top 5 precious metal friendly countries (in our opinion) are…