“Expropriation-resistant” metals

Combating corruption and money laundering is an important priority in the EU. To increase transparency regarding ownership structures, the office in Brussels is therefore working on a central asset register.

This is intended to record the assets of European citizens, such as bank accounts and company shareholdings. According to a paper from July 2021, the register is also to be extended to cryptocurrencies, works of art, real estate, and gold. While those responsible speak of a purely feasibility study, nervousness is spreading among owners of tangible assets.

Do I need to reallocate? How can I protect my assets? Not only property owners, but also owners of gold are asking these questions. This is because, if the asset register were implemented in the near future, their data would also be stored centrally. Precious metals would then no longer offer protection against state access. While it can be assumed that a government does not access its citizens’ assets without reason, it cannot be ruled out—especially in unsettled times. It is therefore good to know that there are assets that do not have to be recorded in the register, such as technology metals and rare earths.

Production-critical metals, like oil and iron, are classified as commodities rather than precious metals. They are therefore not reportable assets. In addition to their many positive properties such as corrosion resistance and protection against demagnetization, they also offer “expropriation resistance”. They also provide the opportunity for attractive returns, including tax-free purchase and tax-free gains after a holding period of one year.