How to use gold to protect your wealth internationally

Gold has offered protection for various forms of wealth for centuries and remains a reliable investment for international investors. In times of political unrest, inflation, and currency devaluation, gold is globally recognized as a stable store of value—especially when combined with other investments.

Why is gold considered a safe investment?

Gold generally retains its value during periods of economic instability. While traditional currencies are influenced by policy changes and market volatility, gold remains independent. This makes the precious metal attractive for investors seeking to avoid international risks. Central banks hold gold reserves as protection, confirming gold’s role as a stable investment.

During crises, demand for gold increases—as seen in 2008 when the gold price rose by more than 25% due to a global flight into physical gold.

During the 2008 financial crisis, the gold price rose significantly after a brief drop. From 2009 onward, the gold price surpassed $1,000 per troy ounce and reached nearly $1,900 in September 2011. This increase was driven by monetary stimulus, inflation concerns, and investors seeking safe-haven assets like gold.

The benefits of gold for international wealth protection

Gold is a physical asset not tied to any single economy or government. This provides protection against financial instability in multiple countries at once.

Investors often move their capital to safe jurisdictions by storing gold internationally in vaults outside their home country. Through our partner Edelmetaal Beheer Nederland, we offer this service as well, with storage facilities in Rotterdam and in Zurich, Switzerland.

Physical gold is tradable worldwide, providing flexibility in international investments. Gold is recognized everywhere as a valuable asset, making it easy to sell or exchange. Additionally, gold offers inflation protection, as its value historically increases when traditional currencies lose purchasing power.

How gold can help with currency risks

Currency fluctuations often impact your wealth, especially when holding traditional currencies across different countries. Gold acts as a buffer against these risks. When a currency declines in value, the local price of gold typically rises. This effect offers protection, especially when multiple currencies are under pressure.

By holding part of your wealth in gold, you reduce the impact of negative exchange rates on your total portfolio. This is particularly relevant for entrepreneurs and investors with international assets or income in multiple currencies.

The role of gold in diversifying international portfolios

A well-diversified portfolio contains different assets that perform independently. Gold plays an important role because it often reacts inversely to stocks and bonds. This means that when traditional markets decline, the gold price typically rises.

By adding gold to an international portfolio, you spread risk and reduce the chance of significant losses. Therefore, don’t only invest in gold but also consider silver, for example. Especially in times of geopolitical unrest, when multiple markets are affected simultaneously, gold offers stability. Maintaining a mix of precious metals, real estate, and stocks also helps balance risk and return.

How to buy and store gold for international protection

When purchasing gold, it is important to choose trustworthy providers. The Silver Mountain offers certified gold coins and bars from globally recognized series.

Choose physical gold over gold certificates to ensure direct ownership. This reduces counterparty risk. Counterparty risk refers to the chance that the other party in a financial transaction cannot meet their obligations.

With gold certificates, you risk that the custodian may go bankrupt and be unable to pay out the underlying value. This risk does not exist with physical gold, as you are the direct owner of the metal.

Secure storage of gold is crucial. Opt for professional storage facilities in financially stable countries. Our partner Edelmetaal Beheer Nederland offers storage options in Rotterdam and Zurich, both locations with an excellent reputation for safety and financial stability. By storing your gold internationally, you reduce the risks of economic or political instability in your home country.

Gold and tax advantages in different countries

Tax regulations around gold vary by country. In all EU countries, investment gold bars and coins are exempt from VAT. This significantly reduces purchase costs. Outside the European Union, additional import duties or VAT schemes may increase costs.

By storing gold internationally, investors benefit from favorable tax rules, such as the tax exemption in Switzerland. Switzerland is a popular location due to this exemption and its long history of secure storage. By taking local tax laws into account and optimizing storage locations, investors can maximize returns while minimizing tax expenses.

Would you like to learn more about how to effectively use gold to protect your wealth internationally? Contact us for personalized advice. Also check out our wide selection of gold bars and gold coins.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.