Safe Deposit Boxes are not 'safe'

Most ordinary and law-abiding citizens have no idea how much an unaccountable clique of professional politicians has already undermined all notions of justice and freedom. So just consider a few facts about a raid on safe deposit boxes that took place in London in 2008. Given that Britain is still a country whose legal system is held in high regard you may just imagine how your assets may be treated in other countries.

Aside from those three dozen or so people found guilty, the vast majority of the 3,500-plus box owners have turned out to be innocent. Yet their money was confiscated, and in many cases is still being held, by the Metropolitan Police or the Inland Revenue. The owners have spent nearly three years and thousands of pounds in uncompensated legal fees having to justify why they kept their personal belongings in safety deposit boxes and how they came by them in the first place. Worse still, when people have had their belongings returned, in some cases cash and jewellery has been missing. (London Evening Standard)

So readers should be careful about where they keep their wealth. We always advise to diversify holdings as much as possible with respect to geographical location and custodian.

Hedge Fund Performance: do not compare Apples with Oranges

Comparing Hedge Fund performance with the S&P Index is comparing apples with oranges (Goldman Sachs Report). One may have a critical view of Hedge Funds – and they are far from perfect – but they are expected to provide satisfactory returns on a risk-adjusted basis and diversification away from mainstream investments such as large-cap equities that dominate the major stock indices. A less simplistic analysis is needed and in addition those looking to invest in hedge funds need to fully  understand the instrument rather than being taken in by a sales pitch.

Investors gullible and naive - study

"Delegating responsibility for investment decisions make investors vulnerable to the choices of professionals, choices that may be opaque, shielded from market discipline or tainted by conflicts of interest." A study of investment behaviour illustrates 'terrible investment habits' of American investors and the need for impartial advice.

Closing Banks restores Confidence? - Nuts!!

Alert Investors the world over will see through the explanations (CNBC) of the 'experts' that claim that keeping bank closed in Cyprus will 'restore confidence'. What confidence is left in politicians and regulators has been shredded to pieces in the farce surrounding the rescue of Cyprus and/or its banking system. Every investor should have a 'Plan B' to prepare for similar episodes in other financial centres - or get one ready if he has not already done so.

Gold purchasers to be registered - first step to expropriation?

If you have still any trust in governments then think again and read this article

Gold: the safest asset

The hectic search for the presumed wealth that Egypt's former President Hosni Mubarak is supposed to have stashed away highlights the importance of not only putting some assets into safe havens but also to select the right asset. Assets that are claims or liabilities on other countries or are stored electronically cannot be considered safe under all conceivable circumstances. While we have sympathy for the quest for Mubaraks assets it leaves a sour taste as no proper legal procedure seems to have been followed. Authorities in some countries seem to be driven by political correctness and it is obvious that they will be the willing executioners if other countries want to bring assets of their citizens under control. Gold is one asset that will be very difficult to trace. Its compactness means that is requires little storage space, it is neither an asset nor a liability and given proper attention can easily be stored in a safe place.

Capital Controls coming to the US?

We are not yet in the camp of the panic mongers who frighten Americans but we are continuously advising investors to make sure that they don't put all their investment apples into the same basket. Keep a fair share of your wealth beyond the reach of local politicians and tax authorities. Then you will be prepared to most eventualities.

Diversify your assets - also geographically!

The history of the past 100 plus years has provided ample illustration for the fact that even the mightiest empires may fall. So any investor is well advised to plan for the worst case scenario - however unlikely it may appear at the moment. The costs of doing so are very moderate in comparison with the potential gain: to have a nest egg to fall back on if one has to leave one's country because of political turmoil. As geographical diversification of assets provides a benefit in any case the investor in effect is incentivised to put some - or the larger part - of his assets beyond the reach of the authorities in his homeland.