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Crossing Borders With Gold And Silver Coins - A Glimpse Of Things To Come
Submitted by Doug Casey via InternationalMan.com,
It’s well-known that you have to make a declaration if you physically transport $10,000 or more in cash or monetary instruments in or out of the US, or almost any other country; governments collude on these things, often informally.
Gold has always been in something of a twilight zone in that regard. It’s no longer officially considered money. So it’s usually regarded as just a commodity, like copper, lead, or zinc, for these purposes. The one-ounce Canadian Maple Leaf and US Eagle both say they’re worth $50 of currency.
But I’ve recently had some disturbing experiences crossing borders with coins. Of course, crossing any national border is potentially disturbing at any time. You might find yourself interrogated, strip searched, or detained for any reason or no reason. But I suspect what happened to me in three of the last four borders I crossed could be a straw in the wind.
I’ve gradually accumulated about a dozen one-ounce silver rounds in my briefcase, some souvenirs issued by mining companies, plus others from Canada, Australia, China, and the US. But when I left Chile a couple of months ago, the person monitoring the X-ray machine stopped me and insisted I take them out and show them to her. This had never happened before, but I wrote it off to chance. Then, when I was leaving Argentina a few weeks later, the same thing happened. What was really unusual was that the inspector looked at them, took them back to his supervisor, and then asked if I had any gold coins. I didn’t, he smiled, and I went on.
What really got my attention was a few weeks later when I was leaving Mauritania, one of the world’s more backward countries. Here, I was also questioned about the silver coins. A supervisor was again called over and asked me whether I had any gold coins. Clearly, something was up.
I haven’t seen any official statements about the movement of gold coins, but it seems probable that governments are spreading word to their minions. After all, $10,000 in $100 bills is a stack about an inch high; it’s hard to hide, and clearly a lot of money. But even at currently depressed prices, $10,000 is only nine Maple Leafs, a much smaller volume. Additionally, the coins are immune to currency-sniffing dogs, are much less likely to be counterfeit, and don’t have serial numbers. And if they’re set aside for a few years, they won’t be damaged by water, fire, insects, currency inflation, or the complete replacement of a currency. Gold coins are in many ways an excellent way to subvert capital controls. And I think they’ll become much more popular in that role.
That’s because, all over the world, paper cash is disappearing. People are moving away from paper cash. That’s partially because there are fewer and fewer bank branches where you can cash a check, and ATM machines are costly to use. And partially because everybody has a cell phone and they’re starting to use them for even trivial purchases, like a cup of coffee. Governments are encouraging this because if all purchases, sales, and payments are made electronically, they’ll know exactly what you’re doing with your money.
From their point of view, the elimination of cash will have several major benefits: It decreases the opportunity for tax evasion, it decreases the possibilities of “money laundering,” it eliminates the expense of printing currency, it obviates counterfeiting, and it gives the state instant access to all of any individual’s cash. From an individual’s point of view, however, the safety and freedom offered by a stack of paper cash will disappear.
Much of the safety and freedom offered by foreign banks and brokerage accounts has already disappeared. Few people seem aware of the fact that not so long ago, there was no limit to the amount of cash you could transfer in or out of the US without reporting. Or that you didn’t have to report the existence of offshore bank or brokerage accounts (although you did have to report taxable income from them).
That changed in 1970, first with the passage of USC 3156, and then the perversely-named Bank Secrecy Act. The 1986 Tax Reform Act made it highly inconvenient, and largely uneconomic, to invest in passive foreign investment companies (PFICs). In 2010, the Foreign Account Tax Compliance Act (FATCA) required every foreign financial institution in the world to report info on US persons to the US government. The enormous regulatory burdens and potential penalties it imposes now make it very hard to find a foreign institution that will even open an account for an American.
These are all de facto capital controls. In the US, banks are starting to notify customers that they’re not responsible for the storage of cash, or gold, in their safe deposit boxes. When I was in New Zealand a couple of months ago, I was taken aback to see that the suburban branch of a major bank was closing down its substantial safe deposit box department.
When I inquired why, the manager only knew that it was a new policy and if I wanted a box, I’d have to go to the main branch. This seems to be another worldwide trend. If there isn’t a safe place to store paper cash or gold, then people will be less likely to possess them.
But it’s getting worse. Over the last couple of years, there have been efforts to pass a bill that would allow the US to deny issuance, or cancel, the passport of anyone who is simply accused of owing $50,000 or more in taxes. I expect this will become law at some point. After all, it clearly states on your passport that it’s government property and it must be turned in on request. People are actually the most valuable form of capital. Emigration has always been nearly impossible from authoritarian regimes.
So what’s next? I expect, as the subtle war on both cash and the transfer of capital across borders gains momentum, that gold coins are going to become the next focus of attention. So I suggest you act now to beat the last minute rush.
Have a meaningful percentage of your net worth in gold coins.
Have a significant number of those coins stored outside the country of your citizenship.
Concentrate your future purchases in small coins that are indistinguishable from loose change. Things like British sovereigns (.23 oz of gold) or their continental equivalents (French, Swiss, German, Danish, Russian, etc., pieces of generally .18 oz of gold). Not only is gold cheap now, but all of these are currently at only a few percent above melt. Happily, they have collectible value, and they resemble common pocket change to an X-ray machine.
Also, do this: Put a bunch of silver Eagles in your brief case the next time you travel internationally and let us know if your experience resembles our own.
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Bit con:
https://www.youtube.com/watch?v=5Bcpj-q0Snc
Need help? United States:
1 (800) 273-8255 National Suicide Prevention LifelineI have successfully crossed international borders and reconstituted a bitcoin wallet from nothing more than a seed key at an internet cafe. I then converted some bitcoins to the local currency, Euros, by meeting a local in Ljubljana, Slovenia, who I made contact with on localbitcoins.com. Even if an EMP took out North America, as long as you can get to somewhere, anywhere, where the blockchain exists, you can get your bitcoins. That being said, I don't believe it is very smart to put all your eggs in one basket. Diversification with a heavier emphasis on physical metals, including lead, is preferred.
Fuck your NSA created shitcoin
Lead packed in brass is always good for barter and hard times.
Oh so arranged a meeting with a local stranger in Slovenia to complete the exchange? What, isnt it all online at lightspeed and 100% safe?
I'm so sorry you don't "get it", but Bitcoin at least for now doesn't seem to have the personal issues. Strangers seem to be friendly and whole, unlike the highly-praised, highly-trained, high-integrity Fed agent who stole the Pirate's Bounty when Silk Road went under. Remember THAT!!
Bitcoin is not quite lightspeed when confirmations have to be completed, but it IS very safe if you exercise decent security. With few exceptions, as soon as one receives a transaction, they're not likely to be subject to a double-spend (I'm fine with two confirmations on large transactions, just one on something small)
Cite any examples for me to comment on and I may have already heard the story. I was an early Bitcoin adopter. Much of BTC issues are in regard to security at some end of the chain. Automated websites still need access to the blockchain to transact. The earliest sites were the most flimsy and only a handful got it right. Even after 6 years, Bitcoin has proven a much-needed disruption and the beginning of better things to come. The sole exception? Physical cash! That's yet another discussion.
1oz Silver American Eagle €13 @ EurGold
https://www.eurgold.eu/silver/american-eagle-1oz-silver-coin-1-dollar-le...
Gold coins are in many ways an excellent way to subvert capital controls. And I think they’ll become much more popular in that role.
But there's only 1oz of gold per person on Earth. Logic would tell me most of that gold is in the form of bricks and not in the form of coins.
Let's say 1/10th of the world's gold is in coins. That means, on a per person basis, gold coins can be used to "subvert" less than $200 in "capital controls".
For me, that's less than two month's groceries (or 10 days of beer at the local honky tonk). Is this really an issue?
People are actually the most valuable form of capital. Emigration has always been nearly impossible from authoritarian regimes.
Is it possible these "authoritarian regimes" know nothing of the Sword of Damocles?
If you want protection, begin to form small groups of like minded people. It takes only a small number of people to tip these regimes. When it comes to the nut cutting, the nuts cut and run.
Be damn careful not to be too public. The cops and courts can conspire under "suspicion" to have your premises searched. There are additional steps I won't go into for now, but these government boot lickers are wanting to squelch dissent at any costs. To win, you have to outsmart them.
"In the US, banks are starting to notify customers that they’re not responsible for the storage of cash, or gold, in their safe deposit boxes.
That's always been the case, no news there.
However, it does allow the banks to covertly warn their sheep that the Wolves in Dee Cee are hungry and likely sharpening their knives. I sense the 1930's around the corner with the desperation this government under Obummer has day in and day out.
Bitcoins are fine UNTIL you use them, and then every Online or Vendor purchase is tracked, it's worse than cash in that regard.
So there is NO end arounding the system unless you BARTER.
I had a little trouble with transporting my eagles via a quick flight from Montegegro to Kosovo /snark
I came through a canadian airport from an international flight carrying some gold maples. My emergency stash in case of...... who knows. I get searched and I forgot to declare the can of spanish tuna in the bottom of my pack and the sleeve of garlic that I had in case of ebola. I wasn't expecting to make it back to canada anyway with all the hysteria about it. Anyway the empty your pocket moment came and the agent found the maples and wet her panties.
Her "how much are they worth"
Me " I dunno it says $50 on them
Her " why do you have them "
Me " in case the bank machines go down"
Her " what are they worth!
Me " I don't know, it changes all the time and depends on what someone will give me for them.
Her checks the internet and finds some $3000+ ounce value and gets her panties really wet. " You didn't declare yada yada and the limit is 10000CAD yada yada
So I got fined $250 for not declareing but got my coins back. I ended up haveing a red pill conversation with her and insisting that they were official canadian currency with a face value of $50 and Queen Elizabeth on the other side. I wasn't home two days and had a letter from Miss wet panties that after checking with her supervisor the official value of maples are their face value. The letter also said I would get my $250 back in about 6 weeks. The check arrived five and a half months later. The other funny part of the story was I travel rough with a dirty backpack and clothes that look like I sleep under bridges. I also had a pack of cigarette papers which cause the empty everything order. She thought she would find drugs.
On another occaision traveling in canada the agent who was a lieing SOS pulled me aside and while training a rookie used a number of lies to fondle my uncirculated coins. He claimed to have found explosive residue as a pretext to pull me aside. I don't come near that stuff. In europe the customs don't care. Its like its nothing unusual for them. In canada they always look at them because its not common and I think for the agents its the first time in their lives they have seen .999 not the usual 14k with the 5pt chip of glass
expect a complete ban on transfer of gold and silver across borders
Yup, total ban across borders.
Inside borders expect cash to disappear. Gold and silver can be bought/sold, but only by electronic means and will be subject to a 50% on the spot of sale capital gains.
I don't know why people don't just buy a heavy safe and put it in their closet. The odds of someone breaking in and hauling off your safe are astronomically small. So few people save gold and currency that way, and yet it takes away all your worries. I'd even suggest saving it in the trunk of your car, as long as it's a late model.
But what if the .gov decides to SWAT your home? If they find the safe there they have all the time in the world to crack it
You might find that a gun pointed in the direction of your family is a very effective safe-opening device.
Not so quick. In my instance, a trusted party whom I have my stash with has NO, I repeat, NO access to the combination.
Try as they shall, it's like blood from a turnip. You can't gain what you don't possess in the first place, unless you're naked shorting an entire year's production of Ag in the first place, yet I digress.
This is EXACTLY what I've advocated for years now. You possess a functional cranium and have received an automatic up-vote from me.
Trunk of car + cash + currency sniffing dog = Civil forfeiture.
Have a great day sir.
Can someone comment on the feasibility of mailing coins to yourself at a foreign address? Apart from the legality (which no longer applies IMO when the government decided to covet our wealth), would that get noticed by government snoops?
The postal employees will probably steal them
Strongly agreed! It happened with a prize I mailed out to a listener (I was formerly in the media) and gave that listener express warning that it COULD be stolen and that I was not responsible for making up any thefts. It apparently gotten stolen or that person lied, but I warned them!
The fucking TSA is just as bad, despite cameras being trained on them at DIA. A radio went missing from my luggage coming back from Europe. Of course those sorry sons of bitches have a union to back them just like the Po'-leece today.
See the disturbing trend here? We're massively fucked.
I could not get a broken pediactric stethoscope to Thailand to give as a gift to a eleven year old girl. It was stolen.
In the Philppines I hear they keep dogs to sniff out currencies. Try to bring in two laptops each worth about $200 on Ebay and you'll get hit with a $200 tax on the 2nd one and will be told that it's retail value is $1000.
Countries like Germany, Netherlands, Sweden, using FedX would probably work, but make sure you comply with all rules else--gone.
2000$ worth of silver bar, Eagles, Libertad, Maple confiscated by Pakistani government. Apparently it is illegal to bring in (beside take out) without informing Pakistan embassy, customs and banks.
Fuck them all.
Governments had had an eye on gold for decades. It was 1986, I had just graduated with a BS in Geochemistry. I traveled from the East Coast to Toronto to visit PDAC (Prospectors and Developers Assn of Canada) the largest prospecting/mining convention, I think, in the world. I had this neat idea: This just new technology called GPS would revolutonize prospecting. Then a GPS would weigh a hundred pounds and would take half a day to get a 3 meter reading. I was laughed at, "...it'll never happen," I was told over and over. Oh well.
On the way back though at Customs I was asked how much gold I carried. "None," I replied. Well, I was taken inside for over two hours. My Saab was taken away and returned a few hours later, and I really never thought much about it.
But now, after reading this I think they knew I had been at PDA, but how? The only way would have been to log license plates and I'll bet that was done. It makes sense in a way, if a miner in Canada wants to get a few thousand ounces to America I'd have been a good carrier. Alas--it wasn't to be.
The noose tightens. I'm long copper scrap piping. A five gallon bucket holds a few hundred dollars and will hold its value whatever happens.
Oops DP, sorry
Screw bitcoins, screw gold.
If it's really going to be a SHTF scenario I'll hold massive amounts of TP and laundry detergent.
(Laundry detergent lasts for decades, as does TP)
In any governmental collapse both become extremely valuable barter goods.
Bar soap is good too, but only has a shelf life of about 5 years or so.
I'll bet you that feminine hygiene stuff is valuable also.
http://www.cato.org/blog/venezuela-reaches-final-stage-socialism-no-toil...