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August 11, 2015 | Are Collectible Coins The Best Way To Own Gold After All?

John is author or co-author of five books, including of The Money Bubble, The Collapse of the Dollar and How to Profit From It, Clean Money: Picking Winners in the Green-Tech Boom and How to Profit from the Coming Real Estate Bust. A former Wall Street analyst and featured columnist with TheStreet.com, he currently writes for CFA Magazine.

One of the most common pieces of advice in the gold-bug world is to get as much metal as possible for your money, which means buying bullion rather than rare (i.e., numismatic or collectible) coins. The latter weren’t confiscated in 1934, but — so goes this line of thinking — that’s not an issue this time around because gold isn’t legal tender and therefore doesn’t have to be confiscated for the government to devalue the currency.

But today differs from 1934 in another way that might offset bullion’s advantage over collectibles: Governments around the world, after decades of overspending and overborrowing, are desperate for tax revenues and are actively trying to uncover untapped stores of wealth. That’s why the rules governing Americans’ offshore accounts, for instance, keep getting stricter. And why France and several other countries have lowered the allowable size of cash transactions.

How likely is it that domestically-owned gold and silver bullion will be caught in this net? Very likely, says economic forecaster Martin Armstrong in a recent blog post:

Money Laundering & Gold

I have warned that if you are going to buy gold, make sure it is common date $20, $10, or $5 gold coins since bullion is going to become a dirty word. As of April 1, 2015, Chase Bank in the U.S. is advising its clients who rent safe deposit boxes that they may not use a safe deposit box to store cash or gold.According to their new policy, “Contents of box: You agree not to store any cash or coins other than those found to have a collectible value.”

In other words, simply storing gold bullion or cash is now considered to be money laundering as you are hiding assets from the government. They will assume it is illegal gains, even if you can prove it is cash or gold you bought after paying taxes. Welcome to the new totalitarian world of government; you are merely a custodian of the government’s total wealth and are seen as their property. You should have gold coins that are collector’s items with common dates rather than modern produced bullion coins.

If Armstrong is right, then a couple of conclusions follow:

• Home storage is more important than ever because all forms of remote storage are vulnerable to intrusive governments.

• Maybe some common gold and silver coins from the recent past that are worth a bit more than their melt value (that is, collectibles) should be added to the typical bullion stack.

For background, consider these posts from DollarCollapse.com:

Where You Store It

Where You Hide It

And here’s an excerpt from The Money Bubble: What To Do Before It Pops on home storage:

“Metal in hand” is the watchword of a big part of the sound money community, with good reason. If you have it, then it can’t just disappear when a coin dealer stops returning customer phone calls or the government decides to seize bank assets. And, truth be told, a big stack of gold and/or silver coins is a very nice, reassuring thing to see, touch, and contemplate.

But here more than anywhere else in the “where to store it” discussion, the devil is in the details. Home storage of precious metals is literally a book-length subject and is a hotly-debated topic online, so when deciding whether and how to store some precious metals at home, plenty of advice is available. And good advice is necessary because the range of factors that must be considered is legion.

Besides where to hide a cache of bullion and how to package it to keep it safe from its environment, there’s the question whom to tell about it. If too few know, it may never be found. If too many (or the wrong people) know, word might get out and attract unwanted attention.

Meanwhile, each home-storage choice carries its own risks. Hide your bullion in a safe, and that’s the first place burglars will look. Bury it in the back yard, and it might be discovered by thieves with metal detectors. Keep it in a dresser drawer, and burglars might get a pleasant surprise when looking for cash or jewelry. Fail to properly insulate it, and bullion can melt or be otherwise damaged in a house fire.

But these risks are all manageable. Over the years, a number of ingenious solutions to the hiding-place question have been developed. Here are four drawn from a highly instructive article published on the Gold Silver Worlds website in early 2013:

The Freezer. “Regardless of whether you own or rent, the freezer is an indispensable appliance found virtually in all homes, apartments, etc. The accessibility and convenience of this option is excellent, as it does not require any structural modification to your living space. Food items such as turkey, chicken, ice cream containers, etc., can be carefully stuffed with your valuables, effectively fireproofing them in the process. The temperature itself will have preservative effects. Space is a limitation here, but because freezers are rarely robbery targets, they can serve as a discrete secondary storage option.”

Artificial Rocks. “Camouflaging your storage site into the local topography is a time-tested solution. Rocks typically do not draw much attention and can fit into a variety of landscapes. Artificial rocks with hollow storage cavities can be purchased online through a simple internet search. Search results will feature a wealth of shapes, sizes, and colors, ranging in capacity to accommodate a few dozen to several hundred ounces. This solution is essentially fireproof and can be extremely labor intensive in the event of theft.”

Flower Pots. “The density and weight of larger gardening pots can make them ideal for storing larger quantities of precious metals. Their bases can be altered to feature a spacious non-visible compartment within. Larger pots can weigh several hundred pounds and require skill to successfully penetrate, reducing the probability of theft. The layer of soil acts as a protective fireproof barrier. A larger base can work well for several dozen coin tubes or even bars. Remember to always waterproof your metals before storing.”

Unused Pipes. “Pipes are both abundant and distributed throughout most homes. A gas or water pipe which is no longer in use is ideal. Caps can be added to the ends of pipes to hold additional metals. Coins can easily be hidden either within a non-functional pipe or within a pipe cap you may easily purchase. Pipe storage also is a theft deterrent because of the unlikelihood that a time-constrained intruder will have time to scan your entire plumbing or gas pipelines system.”

The article’s list of possible hiding places continues through table lamp bases, backyard grills, and fake appliances. And the complete range of hiding places is limited only by one’s imagination.

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August 11th, 2015

Posted In: Dollar Collapse.com

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