Switzerland’s Big Private Gold Stash

goldIt’s in movies that trigger your imagination of places to hide gold. At Fort Knox, Kentucky (Goldfinger -1964), in the trunk of a car and on a ship (Lethal Weapon 2 –1989), under the streets of New York City in the Federal Reserve Bank (Die Hard with a Vengeance – 1995).
Just the other day, Bloomberg Business Week ran a story of a huge bunker in the Alps next to an old airstrip that holds an enormous stash of gold. The entrance is guarded by a guard wearing a bulletproof vest. If one is to enter successfully, he has to enter a code on a portal and undergo the scan of his iris and satisfy the test of a recognition screen. Beyond the portal lies a group of tunnels once used by Swiss armed forces.
The company who erected this elaborate security happens to be an organization that stores gold for private clients. Needless to say, he’s very fussy about who he takes on as a client. He turns away twice as many as he accepts. He doesn’t want an international drug dealer, for instance, who might use gold to launder his money.
One firm even offers clients a place to eat and sleep so they don’t have to leave a trail of credit card receipts.
Since the 2008 financial crisis, there’s been an increasing demand for gold storage. The very wealthy use gold as a hedge, because they no longer trust banks and because markets are volatile and bond yields are anemic.
But some wealthy people also use private gold storage as a way to bypass the scrutiny of government tax officials. In a number of cases, U.S., French, and German prosecutors have chased down citizens of those countries with undeclared Swiss bank accounts.
Companies who maintain storage operations are not bound by the same rules as Swiss banks to report “suspicious” transactions to government regulators. Recently, the Swiss government sold about ten former military bunkers to companies that now store computer data and gold for private clients.
In the first half of 2016, 1,357 metric tons – or $40 billion worth – of gold have been imported into Switzerland. This is almost a record for the country notorious for its confidential caches of wealth.
What should be clear in this account is that many wealthy investors are not satisfied that gold ETFs, mining stocks, or precious metals mutual funds are sufficient hedges in this precarious global economy.
They are going to great pains to buy and store physical gold.
You’d be well advised to follow their example to protect your own retirement funds.
For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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