Offshoring is more important now than ever before. President Donald Trump may be able to deliver on the change he has promised the American people. However, at the same time, he’s also causing market turbulence. Further, his potential protectionist policies, such as tariffs on Mexican goods, could disrupt the entire global economy!
Even long-time allies in the European Union are worried. Trump has made it clear that he is not as enamored with Europe as his predecessors were. The North Atlantic Treaty Organization, one of the oldest still active treaties, is even at risk. NATO has been important for protecting Western Europe from Russian aggression. Trump has made it clear, however, that he won’t necessarily respond to attacks on NATO members.
As a result of all of this turbulence, gold prices have been edging upwards. While markets are historically high, so too is gold. Gold has hit three month highs even as the Dow Jones and other indices haves reached record highs. Usually, when markets are doing well, gold prices will slump.
Many investors, however, appear to be afraid of what a Trump Presidency could entail. For this reason, they have sought the safety of gold. Gold is perhaps the most popular safe haven asset, but it’s not the only one. There is also bitcoin, which too has secured record highs. Bitcoin has been trading near a $1000 dollars per coin in recent weeks.
Safe Haven Assets Hint At Need To Offshore
Smart investors are diversifying their portfolios. If all of your money is in stocks and other similar assets, you need to consider diversification too. Gold, bitcoin, and other safe haven assets could be a wise buy right now. However, you should also think of diversification in terms of geography.
If all of your money is in the American stock market, or London stock exchange, you’ll want to diversify. If all of your wealth is stored in Swiss or French banks, again, you’ll want to diversify. If all of your gold is in Singapore, again diversify. Offshoring is an easy way to diversify. By spreading your wealth around to different financial markets, you’ll be able to reduce risks. Should one market or country, such as the United Kingdom, suffer an economic collapse, you’ll be protected.
Remember, Greek and Cyprus banks have gone bankrupt in recent years. If it can happen in Greece, it can happen anywhere. Capital restrictions and state seizures of your assets are not out of the question. Could the government seize your bank accounts or gold? Believe it or not, they could.
All of these risks, however, can be minimized simply by offshoring. By adding a bit of geographical diversification to your asset management strategy, you can protect yourself, your family, and your business.