News out of Canada this past week provided a bit of a twist in the FATCA rules. http://business.financialpost.com/legal-post/canadian-judge-denies-quick-end-to-transfer-of-financial-information-to-u-s-under-fatca. As you know, FATCA requires the reporting of bank and financial assets held overseas by U.S. citizens and their institutions. Several readers sent this along believing the United States IRS was engulfing the records of Canadian citizens. I don’t believe this to be the case. As I understand it, this ruling will only affect U.S. citizens living in Canada or people with dual U.S./Canadian citizenship.
While this ruling was not a blockbuster, I believe it is important to revisit FATCA itself. As I understand it and have been told by tax professionals, the law only pertains to banks (accounts) and brokers (securities). Silver or gold held in non-bank vaults do not generate reporting requirements either from the vault or the customer. Effectively, holding gold or silver in a non-bank vault outside of the U.S. is currently a legal avenue to having assets of value outside of borders with no reporting requirements. Could this change? Yes it could but it will be a difficult one to enforce as a non-bank vault has no financial or banking charter which could be used as leverage. What I am saying is this, the way it currently stands, non-bank vaults cannot be threatened with their license being pulled.
This current situation is an important one because it is still a legal “escape route” for capital. You can do this as easily as the elite can, though not in magnitude of course. As I wrote Friday, should you desire help with storage, please contact me and I will put you in touch with the storage specialist at Miles Franklin.
It has now been nearly six months that Jim Sinclair and I have been working together. We wanted to give it some time to make sure our partnership “fit” and was comfortable. It is! We are like minded and have complemented each other by asking hard questions and pushing each other to think things “further” through. As many of you may know, prior to partnering with Jim I wrote for Miles Franklin’s blog. Many never knew I also brokered metal for them. I was paid to write, had I publicly written “call me” it would not have been fair to the other brokers in the office so I remained muted regarding my capacity as a broker.
I am writing now at Jim’s request because he believes it is time. He has done a couple of large trades through Miles Franklin and was quite pleased. After his “testing” Miles Franklin and our time working together, Jim wants me to let you know that I broker metal. I myself have completed numerous trades with them and have 100% in their ability to deliver.
Please e-mail me or give me a call and I will be happy to work with you to secure, at least in part, your financial future.
Comments welcome! bholter@Hotmail.com