Geographic diversification in gold stored in Hong Kong, a good idea?

[globalcash]

I'm intending to take a short vacation to Hong Kong, and intend to buy my very first purchase of gold (coins) to kick off my pp.  I'm buying about US$350K+ for my first allocation, then store them there, either rent a bank's safe deposit box or a non-bank repository.

Is this a good idea?  It being more of insurance, and really as a long term investment, does Hong Kong's ties with mainland China pose any long term risk? 

Are there any better alternatives in Asia?

[MachineGhost]

Hong Kong is SAR of China and eventually they will have to crack down on the corruption and crime that Hong Kong acts as a conduit for.  It is doubtful you can expect a high regard for property rights.

Singapore is a much safer place from a long-term perspective.  But I would never put all gold in one location.  That is just begging for trouble.  Don't put all your eggs in one basket. 

[globalcash]

'much appreciated!

I do have accounts in Singapore too...I just find it less interesting to spend vacation in, ha ha.

What I noticed about HK is that you can buy gold practically everywhere...it's like trying to buy Starbucks in the US.  Singapore, on the other hand, there are only two banks that sell gold(cheaply) and few pm outlets in general.

I'll swing by Singapore and start my pp from there instead...and just enjoy the dimsum in HK!

[smurff]

My initial reaction is that if you can buy gold everywhere, that increases the likelihood of some of that gold being fake.  That may or may not be the case, however, just my initial reaction.

[globalcash]

Yup, kinda scares me too.  But gold seems to be an obsession in HK.  The biggest banks in hk all sell gold, either as physical, paper, and from what I gather, as a 'currency'.  You can practically trade paper gold in most banks, banks like hang seng, BEA, bank or china, wing hang, etc., etc.

Some have a unique system though, selling gold in 'taels' rather than ounces.

[frugal]

Hello all,


HB said to keep GOLD out of home country, correct.

But he RECOMMENDED SWITZERLAND

Why don't keep gold there?

It is the safest country.


Regards

[MomTo2Boys]

I'm intending to take a short vacation to Hong Kong, and intend to buy my very first purchase of gold (coins) to kick off my pp.  I'm buying about US$350K+ for my first allocation, then store them there, either rent a bank's safe deposit box or a non-bank repository.

Is this a good idea?  It being more of insurance, and really as a long term investment, does Hong Kong's ties with mainland China pose any long term risk? 

Are there any better alternatives in Asia?

HOLY COW.

The only reason to store gold in Hong Kong as opposed to, say, the U.S., is if you think anything China related will be more stable if the excrement hits the rotatory oscillator than its equivalent in America. I, for one, think that anything in America will be FAR more stable. FAR FAR FAR. If you are in the US then for the love of everything holy, keep your money there as opposed to anywhere China related. This place (the mainland) will go down like a house of cards if the economy falls to pieces. How the outlying pieces of the Chinese empire will fare I cannot imagine, so why risk it? The mainland doesn't have the infrastructure to withstand a recession, let alone a depression. Stay the heck out of Hong Kong with your money, other than just, you know, to be a tourist.

That and - the folks talking to you about how a LOT (a LOT LOT LOT) of stuff in China is fake? They're super right.

Dude, I would take America in a depression twice as bad as the 1920s over China in a recession like America is in right now. Kid you not, this place couldn't take it.

[globalcash]

Thanks for all the input!

Hong kong seems to be a good place to buy gold(choose wisely where), given the sheer number of competition, you can get a good price.  But I guess, not to store it there for the long run!

Unfortunately, I'm here in Asia and the US and Europe is not as accessible.  It seems prudent to find a place nearer to me.

And so, I'll be exploring Australia as another option for my geographic diversification!

[smurff]

Australia is great. 

[frugal]

Australia is great.

for living or to store gold?

[China Bull]

globalcash,
i'm by no means an expert, but i have contemplated some of the same ideas as you. i have lived in Hong Kong, Singapore and currently Shanghai- total for 20 of past 25 yrs. in these locales. Overall, i can say that SGP might offer a bit longer term safer place to have gold storage than HKG everything being equal. Do note that you have to pay 7% VAT on American Eagle coins in SGP because the gold content is lower than the 0.995 required in SGP to avoid this VAT. this rule may change but just keep it in mind. It's true that there is "gold fever" in China and HKG these days - Chinese banks are encouraging citizens to buy and invest in gold (other than real estate, there are very few places that Chinese individuals can truly invest their savings in China these days - even locals here know that the stock market is totally a crap shoot and they cannot buy any overseas stocks or bonds directly). I find it so funny that there are alot of Chinese who are taking suitcases of cash from China to US, Canada, Australia and depositing outside of China (most of this money is "dirty") whereas i am trying to get a good portion of my money outside the US$ and into other non- US$ assets especially in Asia. The near term future is much better in Asia than the US IMHO.  I digress.........You can get very competitive rates in Hong Kong for gold, including the gold panda coin, but it is true that there is still the link to the big brother mainland to the north and they can basically do whatever they want if TSHTF scenario were to occur, but so what? US govt. has done the same and the current crooks we have in DC are probably no more trustworthy and corrupt than the ones in Beijing.  One idea you might want to consider with at least a portion, but by no means all of your available funds, that i have done is to buy gold in HKG using HKG dollars and store it there. The reason for this is simple - HKG dollar is pegged to US $ for long time now and although there is a commitment from the govt.  to keep it that way (which means that they will probably not keep that promise) many feel that it is only a matter of time before that changes and if it changes it will likely be a a change that will take the HKD closer to the RMB or at minimum appreciation (vs. USD) from todays rate. Even if HKD remains pegged to USD, you won't lose anything on the exchange rate but stand to gain if/when the HKD appreciates vs the USD or is pegged to RMB or a basket of currencies. Although the SGD is not pegged to the USD and has appreciate vs the USD almost 35% in past 6 yrs., i will continue to hold some of my gold in non-US portion in SGP with the primary reason being i plan to use that money in the future in SGP or SE Asia, not the US (i've taken diversification one step further - my wife is Singaporean   

BTW, Having lived in both SGP and HKG, for a vacation i prefer SGP primarily because you can go to real nice beaches, rainforest, golf course, etc. just 60 minutes ferry ride from the hustle and bustle of SGP in the indonesian islands of Bintan and Batam. HKG stresses me out walking there on sidewalks meant for 3 abreast when there are 7 abreast at all times. too crowded and noisy for me.... 

[globalcash]

globalcash,
i'm by no means an expert, but i have contemplated some of the same ideas as you. i have lived in Hong Kong, Singapore and currently Shanghai- total for 20 of past 25 yrs. in these locales. Overall, i can say that SGP might offer a bit longer term safer place to have gold storage than HKG everything being equal. Do note that you have to pay 7% VAT on American Eagle coins in SGP because the gold content is lower than the 0.995 required in SGP to avoid this VAT. this rule may change but just keep it in mind. It's true that there is "gold fever" in China and HKG these days - Chinese banks are encouraging citizens to buy and invest in gold (other than real estate, there are very few places that Chinese individuals can truly invest their savings in China these days - even locals here know that the stock market is totally a crap shoot and they cannot buy any overseas stocks or bonds directly). I find it so funny that there are alot of Chinese who are taking suitcases of cash from China to US, Canada, Australia and depositing outside of China (most of this money is "dirty") whereas i am trying to get a good portion of my money outside the US$ and into other non- US$ assets especially in Asia. The near term future is much better in Asia than the US IMHO.  I digress.........You can get very competitive rates in Hong Kong for gold, including the gold panda coin, but it is true that there is still the link to the big brother mainland to the north and they can basically do whatever they want if TSHTF scenario were to occur, but so what? US govt. has done the same and the current crooks we have in DC are probably no more trustworthy and corrupt than the ones in Beijing.  One idea you might want to consider with at least a portion, but by no means all of your available funds, that i have done is to buy gold in HKG using HKG dollars and store it there. The reason for this is simple - HKG dollar is pegged to US $ for long time now and although there is a commitment from the govt.  to keep it that way (which means that they will probably not keep that promise) many feel that it is only a matter of time before that changes and if it changes it will likely be a a change that will take the HKD closer to the RMB or at minimum appreciation (vs. USD) from todays rate. Even if HKD remains pegged to USD, you won't lose anything on the exchange rate but stand to gain if/when the HKD appreciates vs the USD or is pegged to RMB or a basket of currencies. Although the SGD is not pegged to the USD and has appreciate vs the USD almost 35% in past 6 yrs., i will continue to hold some of my gold in non-US portion in SGP with the primary reason being i plan to use that money in the future in SGP or SE Asia, not the US (i've taken diversification one step further - my wife is Singaporean   

BTW, Having lived in both SGP and HKG, for a vacation i prefer SGP primarily because you can go to real nice beaches, rainforest, golf course, etc. just 60 minutes ferry ride from the hustle and bustle of SGP in the indonesian islands of Bintan and Batam. HKG stresses me out walking there on sidewalks meant for 3 abreast when there are 7 abreast at all times. too crowded and noisy for me.... 

Thanks a lot!

I think the best would be to stash in a number of different countries.  It'll take a lot of time and money, but heck, better to sleep well, right?

FYI, I'm actually from Asia, and where I'm from, there's nothing much to offer but beaches, rain forests, and golf. 

Sadly, gold cannot be purchased here, unless you are a jeweller, or are willing to buy from the black market(that's a different set of risks right there!).  That's why I need to take a jaunt to Hong Kong, Singapore, or Australia. 

I like Singapore for the safety.  Initially, I was looking at buying a small property there, but prices have gone up so fast, beyond that which I could scrounge up

...then they make it more difficult for non-residents by adding more taxes!

[smurff]

Australia is great.

for living or to store gold?

Both. 

Many people moved there from Hong Kong when the island reverted to China control.