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Not Exactly The Smartest Way To Smuggle Gold...
Submitted by Simon Black of Sovereign Man blog,
Thailand is known for a lot of things– quintessential white sandy beaches, hard partying nightlife, quiet Buddhist reverence…
But what a lot of people don’t realize is that Bangkok is probably one of the most important cities in the world when it comes to illegal trafficking.
Human trafficking. Narcotrafficking. Money laundering. Weapons. Forged documents. Etc.
Bangkok is just as vital to these industries as New York or London to the global financial sector.
And now, thanks to India’s sagging economy, they can add one more to this list: gold smuggling.
Recently, India has been in a state of economic turmoil. Beset on all sides by spiraling inflation, economic stagnation, and a rapidly depreciating currency.
In response the Indian government imposed capital controls in a feeble attempt to curb gold imports and reduce its widening current account deficit.
This constitutes theft, plain and simple. By eliminating options to hold anything other than rapidly depreciating paper, Indian politicians essentially stole the purchasing power of people’s savings
India’s government banned gold coin imports outright. And tight restrictions were placed on the importation of other bullion products, replete with excessive taxation and duties to pay.
The private sector hasn’t exactly taken this lying down. History shows that whenever governments create prohibitions, smugglers and bootleggers will always step in to fill the void.
And because of its traditional gold ties, regional commerce, and generous transportation options, Thailand has now become a major transit point for international gold smuggling destined for India.
The World Gold Council recently released its quarterly data on global gold trends, and the numbers are very clear: India’s gold demand cratered, dropping 32% because of the restrictions.
In Thailand, however, gold demand is up 125% from the 3rd quarter of 2012.
I’ve noticed this on the ground; there’s been a surge of gold shops and new inventory in the marketplace, particularly the small ‘biscuit’ bars that are easier to smuggle.
Much of this is bound for India.
Indian customs officials say that the amount of gold seized has soared over 300% this year.
They claim to have found people hiding gold just about everywhere you could imagine– from airplane lavatories to betwixt their butt cheeks. Not exactly the smartest way to smuggle gold… Just imagine being the buyer of those bars!
Of course, most of the gold is making its way into the country. The borders are too porous and there’s just too many people going through.
Based on the markup that gold sells for in India and the cheap cost of air travel in this part of the world, a smuggler can net nearly $10,000 on a single trip bringing 5kg of gold into India.
That’s a fairly solid payoff for a day’s work, though there are obviously risks involved.
But as much as I admire the swashbuckling, unbridled capitalist spirit of these smugglers sticking it to politicians, there is definitely an easier way.
This whole episode really underscores the importance of having at least a portion of your gold (and paper savings) safely held overseas where your home government can’t control it.
If you have gold overseas and some funds in a foreign bank account, then your savings will be protected from the disastrous consequences of capital controls.
Digital currencies like Bitcoin may also be an alternative to paper money; they’re growing in popularity in places like Argentina where people continue to be beaten down by extractive government policies and capital controls.
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Free Francis Sawyer
"Indian customs officials say that the amount of gold seized has soared over 300% this year.
They claim to have found people hiding gold just about everywhere you could imagine– from airplane lavatories to betwixt their butt cheeks. Not exactly the smartest way to smuggle gold… Just imagine being the buyer of those bars!
Of course, most of the gold is making its way into the country. The borders are too porous and there’s just too many people going through."
Translation: the take-home from 'gratuities' at customs checkpoints is up only 200% this year. So bring the fucking cash or prepare for the 300% higher seizeure rate.
Goin' long trolls under bridges.
Ass gold, the richest kind.
A Question for the ZH Community:
Do small gold coins show up differently in the TSA X-Ray and/or scanner machines than just plain old (US) coins?
Thank you for any answers!
My understanding of the TSA's X-ray equipment is that it is rather finely tuned to densities, and as gold is around twice as dense as most common metals, including the metals used for ALL circulating coins today, my suspicion is that the answer to your question is "probably".
I had a TSA drone freak out over my wallet - I have a gold coin and silver coin in it. He ran it through the machine a bunch of times before finally asking me to empty my wallet. But that's only happened once. I've gone through countless times with the same wallet and with silver eagles in my carry on (as gifts). But clearly they show up on the equipment. Just a matter of who's looking and how they act.
I suspect if you had a ton of change - with various foreign as well as small gold and silver coins mixed in - they'd likely not notice.
I'll make a deal with anyone in India. Send me a wire and I'll buy and store your gold here in the US for you. I will only charge you 10% for this service. Therefore, if you send me $100,000, I'll buy and hold $90,000 worth of gold for you. The $10,000 is my fee.
Any takers?
Do I detect a Nigerian accent?
Am I the first?
ASS PENNIES (YT: Ass Pennies)
Leave it to ZHers... Ass pennies indeed.
With all the H1 Bs in this country and given the way all the Indians I know stick together, you may not find too many takers. I bet that is already going on quite a lot.
When I was managing a bunch of them, they used to joke that they all went as a group down to the stores over weekend and bought a bunch of gold....
The best way to carry the 1/10 oz. coins is to get a Stoeger .410 gauge side-by-side and stuff both barrels full. Duct-tape over the ends of the barrels, and you're home free.
Unless they notice the shotgun, of course. That could be a problem.
Do Chen...The TSA used to use gold sniffing dogs for that. But too many TSA agents with gold teef were driving the canines mad.
wow.
You gotta watch out for them aluminum race bearings with those chrome plated gold balls, DoChen. They weighs the same as a high-tensile bearing and are visually identical, but if one slips through into a helicopter, your damn tail rotor falls off.
I only opine as to the clear lack of qualification of many of these TSA gropers fonz. they lack etiquette, class, manners and respect. They make the gw toll booth collectors look like debutantes. Don't read into it too much.
Hi Do Chen...don't know much about scanning technology but I do know someone pretty well who has gotten thru airport security around the world with gold coins next to a bag containing us halves and Ike dollars
Cheers!
Thanks, guys!
Just remember the TSA agents are thieves as well as gropers. Don't leave anything you don't want stolen in non-carryon luggage as they will open them and steal anything with impunity.
Indeed, I have heard reports like that. Why am I not surprised...
Stocking up on tenth-ouncer's, eh? Well done.
True story:
While traveling I used to carry a tube or two of gold maple leafs secured in my carry-on to cover any emergency (or whim) that might arise. A few years ago, before I quit flying I roll thru the TSA checkpoint in either Austin or Houston and they showed on the x-ray.
A concerned niggress asked about them and I explained that I was a coin collector blaa, blaa.. and she asked to see them. I opened my bag and produced them for her, she opened a tube and somehow dumped 6 or 7 onto the floor of the airport, as I scrambled to retrieve them she told me "They're very pretty." and sent me on my way.
Had a similar experience at San Diego airport. An x-ray operator called in the Madam High Supervisor to inspect an unacceptable density in one bag. "I have to ask you to open your bag and remove all contents". I reached into the bottom of the leather satchel and pulled out rolls of Libertads wrapped in plastic. "Here's what you're looking for. Please don't touch them; fingerprints destroy their numismatic value."
She looked at them, never touched anything and said, "I'll let you repack those. You can go."
The best thing is to avoid airports. I generally travel by Jeep or motorcycle. I also keep my passport in a case that blocks RFID, so that it cannot be read or scanned except by removing it from the case and opening it.
'So he hid it in the one place he knew he could hide something. His ass. Five long years, he wore this (gold) watch up his ass. Then he died of dysentery, he gave me the watch. I hid this uncomfortable hunk of metal up my ass two years... And now, little man, I give the watch to you.'
Puts the 'pass' in passing on the inheritance
I remember the story but not where it came from. ?
PT..storline came from "Pulp Fiction" when Bruce Willis character was introduced by Chistopher Walken....
Thanks.
K
Ass for cash
Gold sphincter
he's the man
the man with the golden gland
whaaa wha wha
Having a lot of trouble imagining how to shove 5kg of gold up my ass ... no, someone else can try and do that ...
If you can't become a Banker, the next best thing is a "Customs Official."
Sri Lankan customs control confiscated 2 kilograms of gold and detained two men who had concealed the precious metal inside their bodies in order to avoid customs duties.
Each man had 10 gold biscuits weighing 100 grams inside his rectum," Gamini said, adding the bust was the biggest Sri Lankan customs officials have ever found inside a human body.
They were easily spotted because they appeared to be in pain and could not walk properly, Gamini told AFP.
http://on.rt.com/itar6i
If 'douchebag' were a nationality or race, I probably could not say this.
Francis is the king of douchebags.
I bet he thinks Jews are keeping him off the interwebs for revealing their plots.
But really we just grow weary of tolerating douchebag royalty.
mazel tov, anti-semite loser bitchez.
Francis Sawyer just noted a pattern among the financial and media elite.
Free Francis Sawyer!
His dad comments on here all the time
I noticed a pattern that anti-semites live in trailers and suck cock for rent money. Also they have average IQ of 80.
Eat shit Francis Sawyer, I will piss on your grave and carve the star of david into your headstone.
"But really we just grow weary of tolerating douchebag royalty."
One hopes that that would include Baron Rothschild.
he don't post here.
Dirty motherfucker workin on the Shabbat. Don't you have some blood you should be sucking somewhere?
I let my kids read Francis posts and warned them if they didn't work hard and study hard they would grow up to be losers who had to blame all their failures on imaginary conspirators.
I also told them to be sure to watch out for the assholes of the world who will hate them for being born as they are, and if ever they wind up with a Francis in their midst, to make sure life is as hard as possible for Francis, because those losers deserve to be treated like the parasites they are.
Indoctrination, sure. I'm sure Francis will still be wshing dishes when my kids are hiring dishwashers. No raise for that piece of trash.
karma, anti-semite bitchez.
Or some children to make into matzoh....
I'm figuring a gold dildo carried by my wife would be a good ploy. The only problem is I think a couple kilos would be adequate, but she's pushing for an 8 kilo version.
Is she from the well Hung dynasty?
When I liberate the world from (dot) Indians, their gold will be yours for the taking, and the Asian government complex will finally be able to take control and end this black market trade.
Jump on now, it'll be better than a bitCoin rush.
Over.
Can we please get Jim Quinn and Simon Black or whatever off of Zerohedge? Those guys write the biggest bs ever. They sound batshit crazy and don't have the great witty dark humor and incredible way of telling a story the way the Tyler's do. These guys should just write on their own blog.
Seriously bro? Get fucking rid of that fucking ZH dinosaur Reggie too. BustedBlog goes pumpAndDump.
Over.
The first time I read Reggie, I thought it was a prank.
Now Simon, well, he is an international man of mystery.
Says the guy who doesn't pay to read ZH everyday...
The emptiest trucks are always the loudest.
Why the all caps in your post cornTake? That's hard on the eyes.
FYI, the two you referenced do have their own blogs.
Far as I'm concerned, both Quinn & Black write blogs of merit, Quinn is wordy and has/had? issues about 9/11. Still, one can see he is fired up,focused and concerned.
In so far as Black. Curious thing about Black, his posts are mostly Libertarian lassez faire oriented, well written, and yet he seems to get alot a flack on Zerohedge. Go figure.
Regarding this article about smuggling gold ..... nature finds a way. Block the inevitable and one should expect workarounds. I think in my next life I'll be a swashbuckling smuggler. A cross between Errol Flynn and Han Solo.
And fellow ZH bloggers, please enlighten me. What happened to Francis Sawyer?
Did he get ZH banned for using the J word, picked up by gov goons .. or something????
Either Mossad or his bookie grew weary of Jethro's BS and took out the trash.
Perhaps I am inferring wrong, but I'll take it that referring to Jews got Sawyer banned. Interesting if that's correct (although I could be mistaken ... the response to my query was terse).
I wouldn't be surprised if referencing Jews had repercussions even beyond mocking presidents/PrimeMinsters, congress/parliament, popes/king/queens, Fed heads, bureaucrats and lesser minions.
No, I wouldn't be surprised at all. In fact that would merely substantiate underlying theories about the nature of things.
Hush now. You're supposed to be worried about the muslims. The people that actually own and control everything are not to be discussed.
"If you want to know who rules over you, simply find out who you are not allowed to criticize." --Voltaire
actually ESSENCE, the only time there has been a clean sweep of religion bashing from the comments section was during his namesake pope's election. lots of catholic bashing, thread after thread exposing the hypocrisy of the catholic church, and all of it disappeared in flash from the comments section. tyler wasnt having any of it. francis' obsessive compulsive cheesepope rants were tolerated by tyler for as long as i have been here. and FS did indicate that he was going to leave after the new anti-tolerance mandates were issued. so perhaps you should be surprised.
Kito, I think he got booted, probably because he regressed from 'cheesepopes' back to naming the tribe specifically. Sad, he did more than anyone to point out the undeniable link between neocons and the cheesepopes. I miss him.
That's a shame too. I always thought this site was better than that. So much for the freedom of speech. Wouldn't have thought the Tyler's to be the religious type, or the censoring type. Of course my wife is all for freedom of speech, but really doesn't like it when I point out the BS and hypocrisy of the catholic church
Haasidic jews smuggle diamonds in their clothes, because they know no one would dare to check them, imagine the headlines if they did.
http://www.nytimes.com/2000/03/29/nyregion/sentencing-a-drug-courier-jud...
Former IDF captain, soldier and chemist: http://www.roitov.com/articles/yaalom.htm "Israel gets Pink"
The judge only have him 15 months for running a major drug smuggling ring.
New York and London are vital for money laundering too - just ask HSBC
The American method of financial repression is so much more civilized, don't you think?
Just tell the mass audience that you can't eat it, confuse 'em with a generous portion of public schooling and bullion bank price suppression, and wa-la.
Yes, it seems so much less oppressive and heavy-handed when the repressed are voluntary participants in the repression.
or...
Voila
... as the case may be.
Where's the Indian dude in the gold shirt when you need him?
Where the fuck are all the ZHeeple? Gone apple picking, upstate amongst those dreadful farm people? I didn't know that Budget Car Rentals had so much inventory out of Manhattan.
Over.
Waiting for the cable series "Gold Rush III: Indian buttcheeks".
Please edit out the massive machines being pulled out of those "mud holes".
Blobbing-up machinery from dangerously deep and steeply-sided gravel pits is the crustiest bit of the amateur gold mining mattering thing.
Manyfull roadside blobs can be moved with the correctest of US citizenism machines.
Well, for some of us it still pays a buck. Haven't seen any of the footage yet, but I live it everyday. It won't last long now, the freeist country in the world (for mining) now has the former director of World Wildlife Federation (local branch) as Commissioner of Mines. When this dickwad is finished the only ones left will be .gold publicly traded Co's and a few local oligarchs. Feels just like 1991 back in Arizona. The bright side is that acquiring reserves now gives years of hassle free production...anyone want in???
oh my goodness! how can this be! the price of gold is falling!
For the last year, or whatever.
Wait till theCoin corrects itself. There is only one exit door and about 405,000 people who are going to want to exit through it.
LoL. I hope you're not at the end of that line.
Over.
Yes, buy Chilean gold....simon has people on the ground to help you with that...and he gives free Chilean inflation protection bonds as a bonus.
And if you're lucky he may let you have the last membership in happy valley farms for a small honorarium.
What do believe in Kito?
You're oh so quick with the snarky remark, however I can't ever remember you actually prescribing a solution to an issue.
you know ESSENCE, if you subcribe to my website, you get a free monthly newsletter that provides you insight into my thinking and will absolutely fucking enlighten you!! its only 39.99 a month, and i will even throw in some treasury bonds!! and when you just cant get enough of my bullshit, i will be quick to remind you of my upcoming investment conferences. $1000 a pop, but oh man, i will have some real speakers there, providing you guidance and revelations that NOBODY has offered you before. airline and hotel not included. whaddyasay ESSENCE???
or i could just ship you some snake oil. your choice ESSENCE!!!
There are few solutions and a plethora of problems. People will pay for solutions as they are quite rare. However problems are plentiful, too plentiful.
People sometimes buy problems. (That I just do not understand.) But most people actuallly will pay to rid themselves of problems.
When it concerns Government, any Government, not just the United States Government, but ALL Governments...
THERE ARE NO POLITICAL SOLUTIONS. They just do not exist because PEOPLE ARE FUCKED UP.
There has not ever been a Political Solution. There are PRESENTLY no Political Solutions. And in the Future there will be no Political Solutions...BECAUSE GOVERNMENTS ARE THE PROBLEM.
The PROBLEM ADDRESSED IN THIS DISCUSSION IS THE GOVERNMENT OF INDIA RESTRICTING GOLD IMPORTS.
Gold is not the problem. It is just a metal which most people value. I do not know why, nor, do I care to know why as it does not matter. That is the reality. It is far too easy to smuggle it. (See my post which follows.) However the GOVERNMENT OF INDIA IS THE PROBLEM.
Is that clear enough?
What do you expect Kito to do? Solve India? Is that a little bit unreasonable? Just a little?
http://jessescrossroadscafe.blogspot.com/2013/11/india-paying-equivalent-1565-per-ounce.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+(Jesse's+Caf%C3%A9+Am%C3%A9ricain)
Round trip ticket from Mumbai to Bangkok is only $400 You can make a small fortune even with a few ounces of gold The same applies for Dubai and even Hong Kong.
Apart for the smuggling demand for gold into India and Vietnam, there is a rumor that the Thai baht may be devalued:
"The prospect of a devaluation of the Thai baht boosted demand among domestic investors as a means of storing wealth. The increasing prevalence of small gold bars within jewelery retailers across the Asian region supported demand."
http://www.businessinsider.com/thailand-has-become-a-hub-for-gold-2013-11
Why not just fedex the shit?
really, hide it inside of tungsten bars, seems to work well enouh the other way.
why not just buy fedex?
http://finance.yahoo.com/q/bc?s=FDX+Basic+Chart&t=1y
Free Francis Sawyer!
Free Francis Sawyer! In every box of flakes!
Or is that in every bag of nuts?
Yeah, hide your gold in tungsten... cuz tungsten is so easily worked with even the simplest of hand tools. And custom officials are like totally used to seeing people carrying tungsten bars in and out of the country. For 'personal' use, obviously.
Lulz
I got burned by that one myself. Bought a bunch of allegedly pure tungsten bars, but my worst fears were realized when I drilled them open and discovered they were all just solid gold, with only a thin tungsten plating.
24 karat bearings; paint 'em silver and ship 'em out...
Silver-plated gold? Why? Gold-plated Tungsten is much more profitable. ;-)
I do miss Bangkok.
What, you move to Issan?
No, but my father told me a tale or two from up that way.
Does anyone on here keep physical gold in other countries??? I'm just a small timer, so my phyzz is at the bottom of an un-named lake. But why in the hell would I keep any of my phyzz in another country? If the SHTF I'm not going to be able to ever get it, and most likely that bank or vault facility is just going to steal it if they didn't already steal it as soon as someone puts it in their vault.
I just don't trust doing that and don't see why anyone else would either. Am I wrong to be skeptical? I just think it's all going to be stolen eventually especially if you're an out of country customer. You'll have no way to stop it from happening and there won't be any laws to help you either. At least nobody who would follow any laws when the SHTF.
It depends. If you were to store it somewhere that had a long history of respecting property rights, and foreigners' property rights, then you might consider it... Switzerland, for instance, used to be a pretty safe bet.
Now? Not so much.
Yes, but he's asking what's good now. I hear Paraguay is on the up and up, but I'm not too sure about it either.
At the end of the day it's all about property rights and mutual respect for the property of others Without those you basically have Africa.
The fact is that both Switzerland and Singapore are quite safe. Note that I didn't say perfectly safe, as there is no such animal.
The reason that I focus on those two is because their reputations must be kept essentially intact, or they would cease to exist in terms of their primary business models.
It is true that Switzerland's reputation has taken a hit recently, but what has transpired there has everything to do with the incestuous international banking system, coupled with bullying from the U.S. It is exceedingly unlikely that either of those countries will allow a foreign power to seize privately held (non bank) assets, as that would be the death knell for them as international capital centers.
Read up on Executive Order 6102, then get back to us about whether it's a good idea to store assets offshore. There are banking systems in the world that are liquid, well funded and not supporting governments that are imploding. Then there are private vaults offshore which are not associated with any banking system. Switzerland, Singapore and Hong Kong come to mind immediately.
I hear Singapore is an option, but I thought Switzerland was off the table for citizens of the US. For bank accounts and therefore I thought the same for vault accounts.
I just smuggled 10 lbs of lead out of my local range. Mined from the dirt backstop. It's like gold mining, only different. And not so lucrative. But, it melts and has its uses. I like scrounging for brass, lead, and copper. The range brass alone pays for the annual membership fee.
I have a scavenger personality as well. Does that mean I would also enjoy smuggling?
Only if you get a giddy feeling when you put things up you bumm...
What about hiking over the foothills? Oh wait, the countries India is surrounded by....hmmm
Just move to another country... simple.
Why not just get the stuff made into a shirt? No one will notice
Here is a story of Westerners smuggling gold into India that were busted in Nepal:
https://www.youtube.com/watch?v=tXz0JNe_rkQ
So the gangsters turn over 204k of gold to be paid 56K? I dunno!
No honor among thieves.
Bitcoin
News Ticker, Quotes and Charts:
http://btcpost.net/index.php
Just fresh Records: 480$
Ummm, India didn't ban gold to stop it from being imported. India banned gold so that they could instantly confiscate it once it got there. We all knew that already, right?
Based on the markup that gold sells for in India and the cheap cost of air travel in this part of the world, a smuggler can net nearly $10,000 on a single trip bringing 5kg of gold into India.
5kg = 176 oz -> $1300/oz -> $228800
So a $228800 investment nets 10 grand.
What are the odds of getting caught and having your gold confiscated? Less than 1 in 23? More than 1 in 23? What are the odds of your customs officer becoming your dealer?
Looks like I'll stick to making an honest living a little while longer.
Ancient Chinese saying:
"Man who run too quickly through airport turnstyle is going to Bang kok"
Bulk silver produces a very dark shadow on many machines. (heathrow in particular) Take it out of the bag and show it as a seperate item. Once they can see what it is, no problems.....usually.:-)
Regards.
I used to take 100OZ silver bars through LAX for a period of a few weeks earlier this year. They would see it and always question it.
The best way was to remove it from my carry-on bag but keep it in a brown paper bag in the same tray but outside the computer bag so they were certain it corresponded to the shape they saw on the screen. They would open the bag see it and move me along. One lady asked how much it was worth, but that was it....
When ever they ask to open it, ask for a separate area or at least away from the rest of the travelers, just because you can...
"I’ve noticed this on the ground; there’s been a surge of gold shops and new inventory in the marketplace, particularly the small ‘biscuit’ bars that are easier to smuggle."
In Thailand there have always been heaps of gold shops. Nobody "on the ground" would notice a change in the number, especially a change just to meet new demand from Indian tourists.
As for noticing "on the ground" more bars, impossible. The shops have inventory on display but the real stack of inventory is hidden behind the counter, look and you can usually see a door that goes to a completely separate room where their vault is.
It's just not possible for Simon Black to know anything about how much gold is going from Bangkok to India.
Indians nabbed with gold
by Kurulu Kariyakarawana
Two Indians who tried to smuggle out 17 pieces of gold worth Rs. 8.5 million, hidden in their rectal cavities, were taken in to custody by Customs officials at the Bandaranaike International Airport yesterday morning.
Each suspect had concealed six pieces of gold in their rectums and the rest in their footwear.
This was the second attempt to smuggle gold out of the country since last Saturday, Customs spokesman, Director Leslie Gamini said.
The suspects were reportedly bound for India when they were caught on suspicion. They will be produced in Courts. The Airport Customs branch is conducting investigations.
It is so damned easy to smuggle Gold. It is metal. There will not be any Dog Sniffing out Gold as it has no odor.
You can cast it as the hinges of of suitcase. You can cast is as the chassis of an Electric Razor and paint it black. You can make a lock out of Gold. and have an Empty Jewelry Case. You cam make the entire Safe out of Gold if you have enough. When they break into the safe and find Paper, then they will abandon the ruse.
Anything that is Base Metal can be fabricated out of Gold. When you get it inside of the destination then the item is assayed, refined, and recast into Bullion or kept in its form if one so chooses to hide it.
Governments and unenforcable regulations...pffffffffft.