The wealthy and, particularly ‘tax cheats’ are in a bulls eye. Where can they go? Into another country? same problems. Into a tax haven? They see the writing on the wall, and will look for alternatives, in fact, a new economic driver now will be tax evasion, and since the traditional tax havens might as well all be written off, another solution will be found. But they will seek a cash solution, as they won’t just buy up all the coal mines in the world, rather, this is cash, and it’s hard to sell a coal mine if you need an extra $100k. You see, this is cash money not some investment.

Well, I guess you get my point, the only place that is more cash like than anything and anonymous is actual gold bullion, in possession, not some electronic gold account. – this means demand for gold bullion now becomes a new haven, for people who want secrecy or privacy or whatever. The traditional tax havens are going to go out of style.

This could be a major driver for gold now, and this new non functional tax haven issue is going to help drive gold up and it’s a huge pile of money.

In any case, I am not saying that the tax haven issue is the only reason that gold rallied this week, but the timing is worth pointing out, and the whole issue of taxation and flight from it will be a huge new dynamic in all markets henceforth. Gold in hand would certainly qualify as cash, and safe cash.

I also heard that a lot of wealthy people are leaving the US and UK in droves. They are going to places like Switzerland and buying up the premium real estate and moving there. But-
This is one reason why I like places that have large expanses of rural economies. Canada, the US. Australia. Go buy yourself a small farm, or if you really want to move some money, some good crop land and just let some caretaker deal with it. That is certainly more real than anything else out there, to preserve your wealth after the inevitable world currency crises that WILL occur when the USD gets a heart attack. The fact that I suspect the USD will strengthen (perhaps one more time?) like it did by end of year 09, as end of year 08, and 07, does not mean I am a dollar bull. I am just not so sure the USD heart attack is coming this month, see.
But as for your cash, well gold is the best, and silver too... which brings up another recent topic – China silver derivatives.
China silver derivatives
There are reports/stories going around that China is a big counterparty to a huge amount of silver shorts held by Morgan (formerly held by Bear before they went belly up). It’s said that China is reneging. China is supposed to be one of the largest holders of silver bullion in the world. Supposedly Comex will have a BIG problem if they do reneg. Stay tuned, but that is the story. The facts are not out yet, only that China stated that ‘some commodity derivatives’ will be reneged on. It is suspected that the silver shorts at the Comex figure here. That story does coincide nicely with the recent metal spike this week, since it broke a week ago.