vault storage – domestic vs overseas
I’m looking to allocate PMs into vault storage. I’m unsure, though, how to allocate domestically vs. overseas. I personally am in the USA, but I think this is a good exercise for everyone.
There are advantages to holding domestically (such as having easier access, no customs, etc) and also to holding foreign (diversification of risk, etc).
What percentage of your vault holdings “should” be domestic, and how much overseas?
As you say, the advantage of foreign is diversification of risk, but what is that risk? I’d say the only material risk that offshore protects you against is confiscation. Similar risk may be a lack of rule of law or corruption, for example asset forfeiture laws which police exploit by charging you with spurious breaches of laws and taking your assets – you know, the sort of stuff that would only happen in third world countries
So as to percentage to store offshore, that depends on your assessment of these risks happening in your country. The higher the risk, the more you should have offshore. It is a personal assessment so I don’t think you can say there is a fixed percentage. A person running a business may be at more risk of opportunistic litigation that a wage earner; confiscation is something that equally affects everyone.
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