Asset Protection BLOG - Mark Nestmann: How to Move Precious Metals Across International Borders [Part II]

In my most recent blog entry, I described why Americans are beginning to move precious metals offshore. They’re concerned about the prospect for government confiscation of those metals, as occurred in the 1930s under the administration of Franklin D. Roosevelt.

But, how do you do you move your precious metals without drawing unwanted attention? And, if you can’t move the metals yourself, who can you hire to do so?

As I mentioned in Part I, it’s no longer practical to use FedEx, UPS, DHL, or the U.S. Postal Service for this task.

Fortunately, a few services are still willing to transport precious metals and insure them for their market value. One such company is Via Mat (http://www.viamat.com). For instance, Via Mat charges approximately US$1,400 to transport US$100,000 worth of gold coins from the west coast of the United States to the company’s storage facility in Zurich. Extra charges apply for pickup and delivery to a non-Via Mat facility. Via Mat will also present your customs declaration to customs authorities in both the United States and your destination country.

What happens, though, if a judge orders you to repatriate your precious metals from Switzerland (or wherever) back to the United States? If you fail to comply with such an order, you could be held in contempt of court and incarcerated until you comply.

One strategy that could possibly avoid this dilemma would be to place the metals into an offshore structure (such as an offshore trust) that you don't legally own, but only retain a beneficial interest. If a judge orders you to return the metals to the United States in the future, you wouldn't be able to comply, since you no longer legally own them. This strategy requires expert legal advice to invoke to avoid potential "fraudulent conveyance" claims by creditors. It also may create reporting obligations, but it’s worth considering.

I’m not predicting that President Obama or anyone else will confiscate gold and silver in the United States in coming years. However, confiscation does occur, you’ll be glad you had the foresight to move your holdings offshore.