parhaps you're right
it doesn't change much on the fact that gold is a very bad way how to store value for an average person
parhaps you're rightGold is traded much more than what people think…and bars travel from country to country in executive planes and re-certificated.
It depends on your definition of "the average person." The average person in many countries, including the U.S., has very little savings and lives from paycheck to paycheck. Gold is very good insurance and a great store of value for those who have some level of wealth, especially in an inflationary environment. Typically, those people should place about ten percent of their investible wealth into gold as a hedge.parhaps you're right
it doesn't change much on the fact that gold is a very bad way how to store value for an average person
ok, "average investor" that has some wealth to preserveIt depends on your definition of "the average person." The average person in many countries, including the U.S., has very little savings and lives from paycheck to paycheck. Gold is very good insurance and a great store of value for those who have some level of wealth, especially in an inflationary environment. Typically, those people should place about ten percent of their investible wealth into gold as a hedge.
Sometimes even cash is the best form of wealth, e.g., you expect a recession or a market meltdown and you wish to buy things when their prices hit rock bottom. It all depends on the stage of the economic cycle.you have to do something with the rest...
sure, personally I'm loaded with cash and readySometimes even cash is the best form of wealth, e.g., you expect a recession or a market meltdown and you wish to buy things when their prices hit rock bottom. It all depends on the stage of the economic cycle.
Any wealth outside of the financial system is weakness and strength alike.Gold is traded much more than what people think…and bars travel from country to country in executive planes and re-certificated.
True, but that is because of external pressure under fairly unique circumstances. Typically, you will be trying to protect your wealth against internal threats in your home country (e.g., creditors, lawsuits, ex-spouses, government overreach, inflation, etc.).Irony of thoughts: Russians who kept their money in Russia still have full access - Russian who kept it in supposingly save offshore accounts can not use their funds anymore.
Easy. Just look what they managed to pull of since 2020Everything you say is true, but I find it hard to believe that they could pull it off. There are certain actions that are big red flags for patriots -- and that would create a huge backlash with mass civil disobedience.
In the U.S., one such thing is banning firearms, which are correctly seen as are badges of liberty. Restricting gold might be another. Citizens are now far less tolerant of such dictatorial actions than they were in 1933 when President Roosevelt issued Executive Order 6102.
Of course, if such restrictions on liberty are enacted during a severe panic anything is possible.
Easy. Just look what they managed to pull of since 2020
Restricting Gold is a walk in the park since only a tiny minority has interest in it anyway.
Gold is carried to friendly nations that have gold mines too, re-certified as if extracted there and fly towards friendly banks, mainly Dubai. OFAC have no power against this kind of traffic.I agree I feel they can pull this restriction off. Right now its only gold transactions involving Russian central bank and certain Russian entities etc but read the text below.
This makes processing payments involving physical gold that much harder for financial institutions globally now. What bank anywhere will want to accept funds from gold transactions with this threat from US.
For me going near gold is not a good idea outside of buying a few coins.
https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1029
------ start quote
In addition, gold-related transactions involving Russia or the Russian Federation may be prohibited under E.O. 14024 or other Russia-related sanctions authorities. For example:
Sanctioned Russian persons are known to employ a wide variety of measures in their efforts to evade U.S. and international sanctions. As such, U.S. persons, wherever located, including persons that process or facilitate gold-related transactions, must be vigilant against attempts to circumvent OFAC regulations and must take risk-based steps to ensure they do not engage in prohibited transactions.
- U.S. persons, including gold dealers, distributors, wholesalers, buyers, individual traders, refineries, and financial institutions, are generally prohibited from engaging in or facilitating prohibited transactions, including gold-related transactions in which blocked persons have an interest.
- U.S. persons are prohibited from engaging in any transaction — including gold-related transactions — involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, pursuant to Directive 4 under E.O. 14024, “Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation (Russia-related Sovereign Transactions Directive). Please see FAQ 998.
- U.S. financial institutions are also generally prohibited from processing transactions, including gold-related transactions, involving foreign financial institutions that are determined to be subject to the prohibitions of Directive 2 under Executive Order 14024, “Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions” (Russia-related CAPTA Directive). Please see FAQ 967 and FAQ 969.
- Non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to violate U.S. sanctions, as well as engaging in conduct that evades or avoids a violation of OFAC sanctions.
Violations of OFAC regulations may result in criminal or civil penalties. OFAC is closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of gold or other precious metals, and is committed to using its authorities to act against sanctions evaders, and promote compliance.
------ end quote
Gold is carried to friendly nations that have gold mines too, re-certified as if extracted there and fly towards friendly banks, mainly Dubai. OFAC have no power against this kind of traffic.
Well the only thing that can be done in case of possible expropriations done by governments in behalf of "national interests" is having your own private army for defending your own interests against the government ones.In such situation of food insecurity then owning crop producing land would mean the value of your investment could increase. Expropriation due to national security concerns is always a problem however. Not sure what can be done about that sadly.
Well the only thing that can be done in case of possible expropriations done by governments in behalf of "national interests" is having your own private army for defending your own interests against the government ones.
Well probably in a few years living in one of these "banana republics" as one of these rich landowners is a good idea compared to living in a undemocratic totalitarian western world....
How were things between October 2018 and December 2020 when Bahamas was on the FATF monitoring list? Any issues sending/receiving foreign currencies?I know that islands like Bahamas can be just one scandal away from being blacklisted.
How were things between October 2018 and December 2020 when Bahamas was on the FATF monitoring list? Any issues sending/receiving foreign currencies?
Well, Mr Everson, that was such an accurate reply but I was thinking more in actually an armed group of people assuming the power that the official government of a banana republic doesn't have there.Today's wealthy have their own private armies called lobbyists.
Well, actually in today's world, specially in the European Union, governments(the lords) treat their "citizens" like their serf and it's like an updated version of feudalism where instead of working in the lord's fields, people have to pay a massive amount of taxes and need a license from the lord to being able to start a business.This may actually be true. We live in a world today where people get rich by doing nothing productive other than sitting on appreciating land or in a appreciating home. I hope the concept of Lord and Serf does not return.
I think the way sanctions have unfolded has shown you got to hold assets in a way that there is no connection back to yourself. I know that islands like Bahamas can be just one scandal away from being blacklisted.
The European Union added a ban on property transactions with Russian nationals to its sixth package of sanctions designed to raise pressure on Vladimir Putin. The European Commission’s proposal would halt property deals with Russian citizens, residents and entities -- prohibiting the sale or transfer, directly or indirectly, of “ownership rights in immovable property located within the territory of the Union or units in collective investment undertakings providing exposure to such immovable property,” according to the legal text seen by Bloomberg News.
https://www.bloomberg.com/news/arti...ock-russians-from-buying-european-real-estateThe prohibition applies to Russians who are not EU citizens and lack a residency permit in EU member states. It doesn’t apply to those who carry citizenship or residency in the European Economic Area or Switzerland.
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