Brexit vs. SWP
By Jeff Thomas, Feature Writer for Doug Casey’s International Man, 321gold.com and Strategic Wealth Preservation (SWP) ... 2019-03-08
Recently, noted contrarian investment writer Jeff Thomas (International Man, Zero Hedge, Gold & Silver Digest, etc.) was interviewed on the subject of precious metals investment. As readers will know, Mr. Thomas is a strong supporter of offshore precious metals storage and regards SWP in the Cayman Islands as, currently, the best facility in the Western Hemisphere.
The following question was a part of that interview.
You’ve been unusually supportive of Strategic Wealth Preservation (SWP) as being, by far, the premier precious metals dealer and depository in the Western Hemisphere. Does that still hold true, as regards Brexit?
Yes, it does. But, there are two aspects to the Brexit concern. First, there’s the concern that the UK will, in future, be in a lesser position regarding worldwide trade, following Brexit. Second, there’s the concern that the UK will want to force taxation and/or confiscation upon its dependencies, such as the Cayman Islands.
I hear these concerns primarily from American and Canadian investors and, in those countries, these concerns would be quite valid. However, the UK has centuries-old agreements with its dependencies that are often not understood by North Americans.
The UK, even in desperate economic times, has never dictated taxation or confiscated funds in one of its dependencies. This would be in violation of the dependency agreements. If the UK were to find itself in dire straits again, as it has after each major war, it would be more inclined to raid the pensions and/or bank accounts of UK citizens. That would be their last-ditch effort, not the plundering of private businesses in the dependencies.
Remember, these are not national assets we’re looking at. I can’t overstate the importance of that fact. SWP is a privately owned company and the assets it holds in storage are the personal property of its clients. Therefore the UK would not be seizing property from the Cayman Islands itself, but rather from private individuals who are citizens of numerous jurisdictions including Canada and the Unites States. This would violate a host of international laws, putting the UK under attack from countries around the world. The Cayman Islands would unquestionably refuse to comply and international law would be on their side.
The art of seeking a safe haven for your wealth is not to imagine that there’s some guarantee out there; there isn’t. So, what you do is seek out the jurisdiction that’s inherently the safest bastion, then you seek out the best facility within that jurisdiction.