Wearable Wealth: A New Way To Hold Gold

How should I own gold? is a question frequently asked of us.

And the answer depends on what your goals are, what your risk tolerance is, and how much you already own. Which is why we put together this free comprehensive Primer On How To Buy And Store Gold & Silver.

But every once in a while, we encounter a novel way to hold gold that we think is worthy of consideration.

In past years, we featured the aurum, a way to carry fractional grams of gold in your wallet in the exact same manner as the dollar bills already in there.

And this year, our good friends at GoldSilver.com have approached us about their expanding line of “wearable” gold.

It’s investment-grade gold jewelry that looks like any other necklace or bracelet to a border officer or fellow traveler—but to you, it’s a portable store of wealth.

And of course it can be an insurance policy in the event you need money down the road.

Reporting Is Becoming More Restrictive

Why is this important?

Because if you, like many PP readers, want the option of being able transport some of your wealth easily and discretely in a time of crisis, gold held in jewelry form has some substantial advantages over coins.

As GoldSilver.com’s senior analyst Jeff Clark recently noted:

Check out this update from the US Customs and Border Protection (emphasis mine):

What constitutes as “Negotiable Monetary Instruments” for currency reporting requirements?

Negotiable monetary instruments that must be reported by travelers or persons sending or receiving them (other than by electronic means by a banking concern) are:

  • Coin or currency from the U.S. and/or other countries, including gold coins*
  • Travelers Checks
  • Checks, promissory notes or money orders that can be cashed by the bearer. This includes checks or money orders made out to someone other than the bearer that are endorsed without restriction(i.e. for deposit only.), and incomplete checks, money orders, promissory notes that are signed but on which the name of the payee has been omitted (the “To” line is left blank)
  • Securities or stocks in bearer form

Gold Bullion is not a monetary instrument for purposes of this requirement, but still must be declared upon entry.

*There is no duty on gold coins, medals or bullion but these items must be declared to a Customs and Border Protection (CBP) Officer. Please note a FinCEN 105 form must be completed at the time of entry for monetary instruments over $10,000. This includes currency, ie. gold coins, valued over $10,000.

And this page adds this helpful clarification:

If you have doubt whether your gold/gold coin is considered a monetary instrument it is in your best interest to declare the item(s) with a CBP Officer, so you do not give a false declaration.

First, this new language makes clear that it is the value of the gold coins that determine if you are at the $10,000 reporting limit. It doesn’t matter that a one-ounce gold Eagle lists $50 on it… the regulation states it is the coin’s worth that determines the reporting value. That means at $1,200 gold, the maximum number of coins you can carry without reporting is 7. At near $1,900 gold, you can’t carry more than 5. 

And if you’re unclear about whether you should report your gold bullion, the US Customs and Border Protection agency advises that you go ahead and report it anyway.

With this specific language, you have little excuse if you don’t report properly. You could be subject to detainment and penalties, and your gold could be confiscated. And based on my experience, who knows what else could happen?

To be clear, you are legally permitted to cross into the US with gold bullion. But the risk of doing so has risen. And the net result is that you’ve lost your privacy, your confidentiality. And by the way, if you do declare your gold coins, how secure is that info? The US government has demonstrated that it is not immune from data breaches.

Wearable Wealth

Because it is not a monetary instrument, investment-grade gold jewelry isn’t subject to the restrictions above.

It’s benefits include:

  • Makes traveling and transporting your money simpler and easier, and keeps it always accessible
  • Makes giving wealth to your heirs or as a gift more straightforward, even if they don’t understand the value of gold today
  • Comes with much lower premiums than most fashion gold jewelry, and most collectible “numismatic” coins
  • Is subject to less tax and reporting complexity.
  • And in our view, gold jewelry could help you avoid a gold confiscation, if one occurred again.

Most gold jewelry doesn’t qualify as investment grade. Those stores in the mall sell mostly 14-karat gold, at premiums two, three and four times the value of the gold content. Designer jewelry simply isn’t a practical or efficient way to store wealth — Tiffany’s isn’t going to buy back your gold necklace at anywhere near what you paid for it.

But GoldSilver’s investment-grade pure gold jewelry, on the other hand, is offered at an attractively low markup and is specifically designed for wearing and traveling with your wealth.

All pieces have the same purity as sovereign coins—22 karat (91.6%, same as an American Eagle) and 24 karat (99.9%, same as an American Buffalo or Canadian Maple Leaf).

So if this interests you, as a clandestine way to store some wealth and/or serve as a lifelong gift your loved ones will appreciate, browse GoldSilver’s ‘Gold Without Borders’ bullion jewelry collection by clicking here.

If you decide to make a purchase, be sure to use the coupon code PEAKGIFT5 at checkout to receive a 5% discount on your order (and if you’re a Peak Prosperity premium subscriber, click here for a code that will save you even more)

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