EXCLUSIVE: Gold smuggling explained

Politics

Gold Smuggling on the Rise

In times of turmoil, those closest to the fire seek to flee the chaos with their wealth. In the last year events in Greece, Japan, and Latin America corroborate this. This author has personal experience and is sharing it for the first time here and exclusively on MarketSlant. - SorenK

Gold Smuggling in 2016

Greeks Confiscate largest Bullion cache at Turkish border in history- no doubt as a byproduct of the Greek economy and/or turkish refugees
- The loot was found hidden in a taxi and consisted of 18 bars of unrefined gold, weighing 33.5 kilos, along with four crosses made of pure gold (11.6 grams).
- The value of the gold is estimated at 800,000 euros, which translates into 200,000 euros in unpaid tax revenue for the Greek state.
Japan has seen an increase of Gold being smuggled INTO the country since its economy has floundered- japan is dealing with deflation ironically
- in 2016 the yakuza and any organized crime thatcan get access to Gold has been smuggling it into Japan forsale to citizens at no doubt higher prices and/or to keep their own wealth safe.
- Easy money, Abenomics, adn increased taxes have spurred those on the fringe to engage in this activity
Venezuela Feb 2016- this author was approached by a broker seeking to move dollars and gold out of Venezuela to the Caribean
- A Venezuelan national contacted me through a Caribean intermediary asking if I could facilitate a transfer of bearer bonds and Gold to theCaribean through their US accounts
- The intermediary was ethical but not familiar with the process for transfer of Venezuelan wealth held in the USA being transferred to the Caribean and asked this author's help.
- After learning that the origin client was family to a Venezuelan Military general, I immediatley declined.
- Apparently Generals in Oil financed dictatorships frequently take profits form oil tanker sales for themselves.
- This General had been socking it away for years in US banks and now was leaving himself for the caribean
- He wanted to reunite withhis money and Gold
- This was reported to the US Dept of Treasury by the author

Although my role seemed to be simple and legit if I took the job, who knows how it could have ended. It was ethically bad and I knew it. Finally, I valued my life. Two months later the Venezuelan crisis was in full bloom Who could have known?

Say good bye to your Gold,Hugo

Portable Wealth throughout history

Chinese

Throughout time, people in oppressed societies or countries under siege kept their wealth portable. A Chinese American colleague explained to this author that it was more important to be able to move with your weath quickly in China then it was to be ostentatious with it. Revolutions bring looting and chaos. So he explained that being able to pick up and go with your wealth quickly was key to survival. He said "They lived in rundown huts but hid Gold beneath the floorboards"

Ashkenazi Jews

In New York and in Amsterdam the diamond trade has many Jewish participants. They did not start out as businessmen. They started as refugees from other countries. They fledRussia and Germany andother countries unwilling to let them live their with their net worth in their pockets. They moved and kept their wealth portable and easy to hide in diamonds and gold.

Koreans

During the Korean war, businessmen in the north fled to the USA with Gold in their pockets and dollars sewn into their coat linings. Source: an old girlfriend whose parents did just that.

In Vancouver, housing prices have skyrocketed froma huge influx of Chinese money seeking refuge from government eyes. Essentially tax evasion. Recently a hedge fund manager of strong reputation has come out of retirement to short the Vancouver real estate market. Marc Cohodes is his name, and his previous claim to fame was corectly shortign Lehman brothers before their downfall. He described the housing situation as a money laundering bubble. we want to know how the money got into Canada.

So, smuggling in Gold is on the rise as people start to panic. What happens otthat money post successful smuggling depends o nthe need. Our guess in vancouver's case, the chinese will follow thier money