Are there any of you here that is familiar with GoldMoney.com? It is a great site for purchasing gold, silver and platinum - you can have your holding stored outside of the US, which I deem to be crucial in the next 5 years or so. The storage fee varies, but it is quite low. James Turk is the founder, a very reputable figure in the metals industry, who has been an undaunted supporter of the Gold Standard, and not only that, he is a follower of the Austrian School.
Technically, by law, if anyone has a financial account in a foreign institution and the value of the account meets or exceeds $10,000 or more, you are supposed to report it to the IRS. Now, I don't know about you guys, but I don't really trust the government (if you're here I presume that you don't either).
In addition, there is also the worrisome Capital Controls, which has been enacted earlier this year (March 2010). If you don't know that already, you should research it.
Please lend me your opinion. Thank you
Personally I would buy Gold bullion and keep it at your home in a safe. The government can confiscate or at least sever your ownership of gold whether you are at home or internationally but the IRS and other monitoring agencies will have a more difficult time knowing where your gold is if you don't make a paper trail.
If you need some cash, how easy is it to sell gold bullion?
You both gave me good answers, but I just want to point out that the US government has confiscated gold before (look up gold reserve act of 1933), and that is why i'd rather own precious metals overseas. Also, goldmoney makes it easy for customers to liquidate their metals, only takes a few days and you can have your cash back anytime. If you hold physical bullion, it's pretty hard to sell it at premium price, i think.
Please read my original question.
What Dustin said. The problem with GoldMoney is that it solves a problem that doesn't need to be solved. For small amounts of capital - say, less than a half-mill good-delivery bar's worth - it just doesn't make sense to be putting your money in gold stored in a foreign vault. And if you do have more than a half-mill that you need to keep safe, then it doesn't make sense to go through GoldMoney, might as well just deal with the big boys directly. I have no doubt that any gold storage bank in Zurich will be happy to talk to you if you can buy even just one good-delivery bar. As long as you own your gold free and clear of any paper-trail, the government really has no way to track it (I don't know about American Gold Eagles, they might impregnate them with a radioactive signature for tracking purposes). I buy my gold and silver with cash for obvious reasons. So, you can either store it yourself at home (buy a REAL, commercial safe, have a home-security system, have insurance, get a dog, own and know how to use a gun, and don't tell your family or friends about the safe, let alone the gold in it!) or store it in a safe-deposit box. Storing it in a safe-deposit box is less risky unless we have a 1934-style gold seizure but I'm still having difficulty seeing why the government would make a big deal out of gold by seizing it when it has invested in nearly a century of propaganda trying to convince everyone gold is completely irrelevant beyond its industrial applications.
Clayton -
Is the price premium for coins worth it?
Yes, but i don't have half a million dollars. Those Zurich banks probably only deals with high end customers. The beauty of goldmoney is that you can get it back in other currencies, no minimum requirement, several choices to have your precious metals stored in various countries, and have it insured all the same time, along with major independent audits quarterly. You can also transfer money to international bank accounts as long as it's in your own name.
I am actually scared that the US government will confiscate precious metals, or somehow overtly create regulation to hinder owning/trading metals, and that is why i believe it's much better to own them outside of the country.
I believe you are still at risk owning gold outside the country. The government monitors every transaction that happens across the border, and if the US government wanted to end international gold transactions they could quite easily.
It's certainly been worth it over the past 3 years. It's like deciding whether to shop at Costco or Safeway. If you don't have a few million dollars to stash in gold, then the "price premium" of coins is just a fact of life, there's nothing to whine about. Three percent is the typical markup over spot for physical coins on the street (though a few times during this bull run-up, it's been closer to 5-10%, at least, in my area). If you have millions then, yeah, you might consider buying bars but you pretty much have to buy them within the good-delivery system unless you want to risk ending up with a piece of gold-plated tungsten cast in China with gold from Fort Knox.
Yes, but i don't have half a million dollars. Those Zurich banks probably only deals with high end customers. The beauty of goldmoney is that you can get it back in other currencies, no minimum requirement, several choices to have your precious metals stored in various countries, and have it insured all the same time, along with major independent audits quarterly. You can also transfer money to international bank accounts as long as it's in your own name. I am actually scared that the US government will confiscate precious metals, or somehow overtly create regulation to hinder owning/trading metals, and that is why i believe it's much better to own them outside of the country.
Never underestimate the moral depravity of the State but be careful not to overestimate its power. You can buy a used commercial safe off Craigslist for cash, anonymously, and buy the gold coins to put in it, also with cash, anonymously (though the 1099 thing is coming down the pike and that's going to be a pain in the ass). Even with all its TSA agents shoving colonoscopes into people's nether regions, the Federal government will be none the wiser. Remember, the tyrant always tries to multiply his power far beyond its actual extents through the use of fear and intimidation. I'm not saying you should not do GoldMoney, I'm just saying that I'm personally not that impressed with GoldMoney and see no reason to use it.
Where would one buy gold locally, coin shops?
Just google coin dealers in your area. Not all coin shops deal in gold/silver bullion so just go down and ask (they won't have it on display).