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Where should one keep their wealth to avoid future potential sanctions?

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parhaps you're right
it doesn't‍ change much on the fact that gold is a very bad way how to store⁠ value for an average person
 
It depends on your definition of "the average person." The average person in many countries,⁠ including the U.S., has very little savings and lives from paycheck to paycheck. Gold is⁤ very good insurance and a great store of value for those who have some level⁣ of wealth, especially in an inflationary environment. Typically, those people should place about ten percent⁢ of their investible wealth into gold as a hedge.
 
ok, "average investor" that has some wealth to preserve
let's agree to disagree on whether⁢ it's a good investment for these times
but as you pointed out you don't put︀ 20 or 50% to gold - 5-10% doesn't change much - you have to do︁ something with the rest...
 
Sometimes even‌ cash is the best form of wealth, e.g., you expect a recession or a market‍ meltdown and you wish to buy things when their prices hit rock bottom. It all⁠ depends on the stage of the economic cycle.
 
sure, personally I'm loaded with cash and ready

however this thread is about preservation⁤ of wealth and cash in the bank account is kind of "weak" in many aspects⁣
 
Any wealth outside of the‍ financial system is weakness and strength alike.
However, the weak point is overwhelming: How to⁠ ever use these assets (if governments ban or restrict trading them)?
It might be possible⁤ to trade Gold bars against Silver, or silver against Platinum - things which can be⁣ done within e.g. SilverBullion/BullionStar. The difficulty will be to "cash out".

The best way to⁢ preserve wealth is to get used to ever changing regulation, adapt accordingly and find legal︀ ways ... . Flag theory, hiding and offshore banking are outdated - they do not︁ work anymore in todays' globalised world.
Irony of thoughts: Russians who kept their money in︂ Russia still have full access - Russian who kept it in supposingly save offshore accounts︃ can not use their funds anymore.
 
True, but that is because of external pressure under fairly⁠ unique circumstances. Typically, you will be trying to protect your wealth against internal threats in⁤ your home country (e.g., creditors, lawsuits, ex-spouses, government overreach, inflation, etc.).

I vehemently disagree that⁣ flag theory is outdated. Diversification amongst banks, vaults, exchanges, countries, and even continents is the⁢ best way to preserve wealth.
 
Easy. Just look what they managed to pull of since 2020 😉

Restricting Gold is a walk in the park since only a tiny minority has interest in⁢ it anyway.
 
I agree I feel they can pull this restriction off. Right⁠ now its only gold transactions involving Russian central bank and certain Russian entities etc but⁤ read the text below.

This makes processing payments involving physical gold that much harder for⁣ financial institutions globally now. What bank anywhere will want to accept funds from gold transactions⁢ with this threat from US 😕.

For me going near gold is not a good︀ idea outside of buying a few coins.

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1029
------ start quote

In addition, gold-related transactions︁ involving Russia or the Russian Federation may be prohibited under E.O. 14024 or other Russia-related︂ sanctions authorities. For example:

Sanctioned Russian persons are known to employ a wide variety of︎ measures in their efforts to evade U.S. and international sanctions. As such, U.S. persons, wherever️ located, including persons that process or facilitate gold-related transactions, must be vigilant against attempts to‌ circumvent OFAC regulations and must take risk-based steps to ensure they do not engage in‍ prohibited transactions.

Violations of OFAC regulations may result in criminal or civil penalties. OFAC is⁠ closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of⁤ gold or other precious metals, and is committed to using its authorities to act against⁣ sanctions evaders, and promote compliance.

------ end quote
 
Gold is carried to friendly︀ nations that have gold mines too, re-certified as if extracted there and fly towards friendly︁ banks, mainly Dubai. OFAC have no power against this kind of traffic.
 
The US warning is clear - even for⁠ people that facilitate Russia evading sanctions. I highly doubt anyone would take the risk to⁤ try their luck for a quick margin on a gold trade. Having a country, business⁣ or yourself put on a US sanction blacklist (effectively global blacklist) is not good 😕. We seen what US is capable off with i.e Loyal Bank to test compliance...lol. I⁢ imagine they will happily pose as undercover Russian intermediaries looking to launder gold and will︀ see who falls for the bate.
 
Cleaned the thread up a bit. I don't understand why some of you can't just‌ stick to the topic and keep any political debates where they belong.

This thread is‍ about financial sanctions and how they impact affected people's business and day-to-day finances. It's not⁠ about whose flag you're waving.
 
Well the only thing that can be done in case of possible expropriations done⁤ by governments in behalf of "national interests" is having your own private army for defending⁣ your own interests against the government ones.
That's what landowners in banana republics did for⁢ centuries(and works).
Well probably in a few years living in one of these "banana republics"︀ as one of these rich landowners is a good idea compared to living in a︁ undemocratic totalitarian western world....
 
Today's wealthy have their⁠ own private armies called lobbyists.

This may actually⁢ be true. We live in a world today where people get rich by doing nothing︀ productive other than sitting on appreciating land or in a appreciating home. I hope the︁ concept of Lord and Serf does not return.

I think the way sanctions have unfolded︂ has shown you got to hold assets in a way that there is no connection︃ back to yourself. I know that islands like Bahamas can be just one scandal away︄ from being blacklisted 😕.
 
How were things between October 2018 and December‍ 2020 when Bahamas was on the FATF monitoring list? Any issues sending/receiving foreign currencies?
 
No issues for‍ me personally as I bank totally outside the Bahamas. I can't speak for anyone sending⁠ money into or out of Bahamas. But I know transfers are still clunky at best⁤ of times and high fees. But at least EU and FATF have finally gave us⁣ breathing room as of January 2022. EU follows US like a lost puppy naturally.

https://www.internationalinvestment.net/news/4043173/bahamas-delisted-eu-aml-blacklist
That's why the issue of asset protection against any future blacklisting or sanction is so⁢ important to me. People living in a western EU country or US take it for︀ granted that they will be able to transact and will never see restrictions or funds︁ blocked. Those living in developing countries, Eastern Europe or even Cyprus or Malta to an︂ extent are aware of gray or blacklisting. Your always one scandal or crisis away from︃ trouble with your banking system 😕.
 
Well, Mr Everson, that was such an accurate reply but I was thinking more in‍ actually an armed group of people assuming the power that the official government of a⁠ banana republic doesn't have there.

Well, actually in today's world, specially in the European Union, governments(the lords)︂ treat their "citizens" like their serf and it's like an updated version of feudalism where︃ instead of working in the lord's fields, people have to pay a massive amount of︄ taxes and need a license from the lord to being able to start a business.︅
Exactly, you have to hold assets in a way that there is no connection back︆ to yourself and keep yourself a low profile to stand under the radar.

That's why︇ living in a banana republic could be actually a great strategy, since corruption is a︈ great tool for reaching your goals and getting the freedom that you wouldn't have in︉ a western country
 
I hope its a miscommunication otherwise it is‌ a very dangerous precedent. Collective punishment assumes every Russia passport holder agrees with Putin. To‍ say a Russian i.e living in Germany or France because of their Russian passport can't⁠ buy a property in the country they have resided in for decades is worrying. Sounds⁤ like a flawed proposal or misinterpretation of what is proposed.

---- quote start

The European⁣ Commission’s proposal would halt property deals with Russian citizens, residents and entities -- prohibiting the⁢ sale or transfer, directly or indirectly, of “ownership rights in immovable property located within the︀ territory of the Union or units in collective investment undertakings providing exposure to such immovable︁ property,” according to the legal text seen by Bloomberg News.

----- quote end

Anyway lets︂ keep to topic please. The subject is:

"Where should one keep their wealth to avoid︃ future potential sanctions?"

Right now it seems like EU is no place to keep wealth︄ if your passport is not strong. I always thought banana republics in South America confiscate︅ wealth. I never thought I would see the day EU countries confiscate assets with no︆ due process and the public cheer it on like clapping seals at a water park︇ 🙁. I will see how this all plays but right now I will sideline EU︈ for a while after having unloaded my EU government bonds already.
 
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