Confiscation-Resistant: Wealth the Government Can’t Get Its Hands On

What if you could travel with a couple million euro in your carry-on bag and have no one be the wiser? What if even customs agents couldn’t recognize your items as being highly valuable?

There is enormous value in adding some quiet wealth to your portfolio, which is what the speakers at the Total Wealth Symposium in Panama City addressed on Friday.

When it comes to protecting and expanding your wealth, there are more avenues for your portfolio than just stocks and bonds. And these options can help to protect you from the coming wealth confiscation.

Total Wealth Symposium attendees received guidance on a wide variety of investment options that were outside the tired norm of stocks and bonds.

One of these options is investing directly in natural gas and oil wells.

On Friday, Donald Hosmer, president of Royale Energy, explained how natural-gas prices are expected to rise as liquid natural gas becomes more prevalent in the United States, allowing us to ship more overseas. Royale Energy showed four wells they were preparing to drill in California — an area they’ve been drilling in for 23 years — that presents a total of nine separate chances for them to hit either natural gas or oil.

Meanwhile, Barry Potekin of RMB Group looked at another way to invest in commodities — through futures. He explained that futures are a great way to lock in prices and protect yourself against upcoming movement in a commodity. What’s more, futures, like options, are a double play — you can easily make money when the market is moving higher or lower.

Mr. Potekin also pointed out that due to the growing wealth of the middle class around the world and the continued population explosion, soft commodities are set to outperform hard commodities during the next 10 years.

Developing a Plan

Sovereign’s own Bob Bauman and Ted Baumann took the stage on Friday. Bob has been regularly visiting Panama since 1975 and is proud of how the country has developed over the years. In a recent report, Panama was ranked first in subjective overall happiness compared to the United States’ ranking of 12th. Bob explained that Panama has one of the fastest growing economies today and that the country managed to largely escape the financial crisis that hammered most of the world. For example, Panama has reduced its poverty by 10% and has extremely low unemployment.

What’s more, Panama has become a leading banking center in Latin America, with more than 80 banks from 30 countries. Some of the reasons it has become an offshore financial center include:

1. 1. Laws dating back to 1920s.
2. Trusts, family foundations and corporations.
3. Being on the OECD’s clean list.
4. Its tax information exchange agreement with the U.S.
5. Well-developed offshore professionals.
6. Visas that welcome foreigners with few restrictions.
7. Immediate residence within months.

Ted Baumann grabbed the stage next, walking attendees through some of the important questions and research that need to be completed before moving offshore. He showed that two-thirds of all American expatriates live in 10 countries, including Mexico, Canada, Israel, the U.K., France and Germany. But there are still many other great places to consider.

And what are some of the reasons you might have for moving offshore? Well, you might be:

1. Looking to obtain a second passport.
2. Near or at retirement, hoping to live abroad all or part of the time.
3. Hoping to spend significant time outside the U.S. for any reason, including tax status.
4. Planning to invest in a business or an established residence nearby.
5. Looking for a change in lifestyle.

However, before you go, you must:

1. Consider the pros and cons.
2. Plan for wealth management as you transition to life abroad.
3. Ensure good health when abroad.
4. Maximize your lifestyle in a new country.
5. Protect, maintain and cultivate family and social relationships in your new home and back in the U.S.
6. Balance the demands of living in two places at once.

The Benefit of Quiet Wealth

Geoff Anandappa, investment development manager of Stanley Gibbons, showed that stamp collecting is not a dead art. One of the ingenuous avenues for accumulating quiet wealth — assets that are easily overlooked and transported — is through stamps, rare coins and other collectibles. Not only is this a largely ignored asset class, but it is outside the regular market turmoil. As a result, the values of stamps, rare coins and collectibles aren’t influenced by market crashes because the prices aren’t driven by investors. They are driven by collectors.

He explained that the collector base in North America and Europe:

• Is well organized.
• Has access to heaps of research and publications.
• Is in the 45-plus age group.
• Has high average spending.

On the other hand, the collector base in Asia and Far East:

• Has vast numbers.
• Has a younger age group
• Is increasing their use of the Internet.
• Has compulsive collectors.

Mr. Anandappa showed how investors could set up a flexible trading portfolio that is unique for each individual of rare collectibles, containing a variety of stamps, coins and documents. There is no minimum holding period and the portfolio allows investors to easily buy, sell or trade up based on their individual needs and goals.

Of course, as Rich Checkan, president and COO of Asset Strategies International, pointed out, another great avenue to protect and grow your wealth is through gold — particularly the physical kind. When owning gold as wealth insurance, you should never get rid of it. It is a great store of value, insures against financial catastrophes, and is highly liquid.

Mr. Checkan even stated: “I don’t think the [gold] bull market ever ended. I think we’re in a correction and a delayed pause due to the administration of the drug called QE.”

When looking at what is best for the individual, he commented that everyone’s situation is different, but for most, a combination of investments is best. He believes in holding 10% of your wealth in physical precious metals, with most of that 10% in gold and a small portion in silver.

And one final great option for quiet wealth is foreign real estate, since you don’t have to report it unless you’re earning income off of it. Sancho Santayana, managing partner of 360 Terra Realty, walked attendees through what everyday life is like in Uruguay. The country is largely overlooked and forgotten by most of the world because it doesn’t make any waves, doesn’t have any enemies, and is simply a serene place in South America. It is extremely safe, and has excellent health care and infrastructure. The country is mainly farmland, producing a large amount of food — particularly beef — for the world.

The real estate market in Uruguay is very stable as 90% of homes in the country are purchased with cash — there are very few mortgages. In addition, there are very few restrictions when it comes to foreigners purchasing real estate in Uruguay.

Too Much Information Pouring in Too Fast

As you can see, the Total Wealth Symposium has supplied attendees with an overwhelming amount of options, ranging from offshore asset protection, second passports, real estate, rare metals, collectibles and more.

If you’re looking for the best ways to protect your assets and expand your wealth in the coming years, this has been the place to be.

Unfortunately, I’ve not been able to write down everything — I just can’t type that fast!

But you don’t have to miss out on all the details. Order our Confiscation Survival Kit to watch every presentation from beginning to end as well as get a copy of the accompanying PowerPoints so you can page through them at your own pace.

I’ll be back on Monday to provide a recap of the conference.

From your conference insider,

Jocelynn Smith
Managing Editor, Sovereign Investor Daily

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