If you’re interested in buying and storing physical gold, you probably want to do so outside of your home country. If you’re a US citizen, and the government goes FDR on you, you’re not going to want your bullion on US soil!
But what’s the sanest country available for this purpose…now that the Swiss appear to be softening? Singapore, says Sovereign Man Simon Black:
It’s official. Starting October 1, 2012, Singapore will be the best place in the world to store gold.
As a major international financial center, Singapore is rapidly becoming THE place to invest and do business in Asia. Why? Because it’s just so easy. Regulation is minimal, corruption is among the lowest in the world, and the tax structure is very friendly to businesses and investors. With one exception.
Traditionally, physical gold and silver purchases in Singapore have been taxed at a 7% GST rate (like VAT, or a national sales tax). The only legitimate exception was purchasing (and subsequently storing) at the Freeport facility, adjacent to the main airport.
In just-released budget documents, however, the government of Singapore announced that it will begin waiving GST on purchases of investment grade gold, silver, and other precious metals effective October 1st.
I spent a few days in Singapore last spring and really enjoyed the place. Though I did freak out a bank manager when I wandered in and asked straight up if I could open a bank account as an American. Not gonna happen – not without a work permit – they told me.
But buying physical gold is a different animal, and it looks like there is good news for those of us looking to diversify beyond fiat currencies, and beyond our current borders.
More articles from my Singapore trip:
- A visit and interview with the legendary Jim Rogers
- Singapore’s vibrant, growing technology startup community