On April 1st, 2015, JPMorgan Chase bank informed their clients who rent safe deposit boxes that their policies would change, specifically in relation to precious metals and cash.
Specifically, the following condition: “Contents of box: You agree not to store any cash or coins other than those found to have a collectible value.”
Banks want their customers to put their wealth into cash deposits. Our government wants their citizens to keep their wealth in cash.
Eventually paper and coin currency will be eliminated and replaced by an electronic payment method. This will also eliminate the ability of individuals to conduct commerce between one another.
Soon after, confiscations will occur. The EU, US, Canada, and several other jurisdictions have, one after another since 2010, passed bail-in legislation, allowing banks carte blanche in deciding when and how much they wish to confiscate. This is already legal in many countries.
The EU has declared that a “reasonable” confiscation might be all deposit amounts over €100,000. Further, the IMF has recently suggested an across-the-board percentage-based confiscation on all deposits.
So what should you do?
Consider keeping a minimal amount in a bank – perhaps three to twelve months depending on your circumstances – whatever amount you would be willing to risk being confiscated.
Second, the most viable alternative choices to cash are precious metals, real estate, land, and closely-held small businesses.
Regarding precious metals, there are a number private, non-bank storage facilities offering private and secure insured storage at very reasonable costs. Facilities outside the country are particularly attractive. Considerations include:
International Depository Services of Canada (http://www.idsofcanada.com/) and
Strategic Wealth Preservation located in the Cayman Islands (http://www.swpcayman.com/).
The key is to select a storage facility that is located where there is a history of stable, non-intrusive government, where no confiscatory laws exist, and where there’s no taxation or regulation of any kind on either the purchase, ownership, transportation, or storage of precious metals, or the profit generated by a sale.
The elimination of safe deposit box storage of cash and precious metals is a precursor to the ever encroaching restrictions on our ability to store wealth. However, precious metals cannot be ‘printed’ or created by the government, and are thus difficult for governments to control, let alone confiscate. And, such has been the case for over 5,000 years, in spite of the efforts of their insidious attempts.
One thing is certain, there will be no warning of impending confiscation. There will be no signs of banks advising clients, “Last chance to get your money out-one day only!” Those who escape this confiscation and loss of wealth will be those who have secured it elsewhere well in advance of any confiscation.
All Things Considered – John’s Commentary:
If you have too much cash, invest a portion, even a significant portion in precious metals and hold them personally.
If you already own precious metals and they are stored at a bank, get them out. We will be happy to advise you on alternative storage locations.
If you have significant assets in retirement accounts, consider opening a precious metals IRA and store the metals outside the US, such as in the Cayman Islands or Canada.
