Investments in the World's Safest Country

By Rich Checkan

I am excited to introduce John Mulvey, Managing Director, and Kirsten Clark, Marketing Director of New Zealand Vault. With offices in Auckland and Wellington, New Zealand Vault provides first-rate storage for precious metals with a unique proposition for their clients. This interview is part of our continuing effort to bring safety and privacy for your precious metals storage so you always Keep What's Yours.

Rich: Can you give us a brief history of New Zealand Vault, as most of our readers are unfamiliar with your operation?

John: New Zealand Vault has been in operation since 1931, and we still have families with us from its early years. In 2005, when I became owner, we progressively purchased the safe deposit service from the major trading banks throughout the country.

Today, New Zealand Vault is completely independent of the New Zealand banking system and of the government. Our state-of-the-art facilities are built to Treasury Grade standards, featuring multi-level electronic security systems. All of this makes us the most secure, private vault in New Zealand.

Rich: For the past five or six years, Americans have been worried about going offshore to hold their assets, but, now there seems to be a resurgence of interest. Have you seen an increase in U.S. clients?

John: We have seen a steady increase in U.S. clients since 2007. U.S. and European citizens are coming to New Zealand as a flight to safety - storing their precious metals with us for geographical diversification. During our visit to the Freedom Fest conference in 2015, we saw an increased sentiment in this regard. There is less confidence in the U.S. markets. This is one thing that drives a flight to offshore safety and to precious metals in general.

Rich: What sets New Zealand Vault apart from other storage options? After all, our readers have a variety of offshore choices.

John: Perhaps our first differentiator is location. Forbes routinely ranks us as #1 or #2 in the ‘Best Cities in The World to Do Business.’ We have a strong, stable and independent government; far away from the world’s hot spots. Clients who store precious metals all over the world seek us as an additional venue because they feel so protected here. I am also proud to say that we are a democracy and are known as the least corrupt government on the planet.

Rich: You have a security process that differs from any other facility we have come across. Can you elaborate?

Kirsten: Yes, every offshore client has appointed for them, the international accounting firm of Grant Thornton, to act as their independent agent. As an agent, they are physically present whenever the box is opened. They also act on your behalf if you ever need to make a physical audit, take photos and create an itemized list.

We use a dual-key system under which we retain one key and there is a second key that is held by Grant Thornton. The box cannot open unless both keys are used. When you want the box opened for any reason, you must give written instructions to both Grant Thornton and New Zealand Vault.

Rich: This system has a unique ‘relationship’ with the Foreign Account Tax Compliance Act (FATCA) rules and provisions. Please explain.

John: Gladly. This is one of our greatest differentiators from other storage facilities or any offshore holding. Because the asset is not in the control of New Zealand Vault, but is in the sole direction and control of the owner, we are not required to report under the FATCA rules. It's as simple as that.

Kirsten: In fact, our safety deposit boxes often hold assets that would ordinarily trigger FATCA, but do not. We offer three sizes of storage boxes.

*Sales tax included

You can open a box account online, using just a credit card, proof of address, and a valid and notarized ID. We can also store up to one ton of metals in a specialized facility for those clients with larger holdings.

Rich: Our readers are accustomed to insured as well as allocated storage. In addition to the safety of your venue and unique dual-key system, how else do you protect the assets stored there?

John: Frankly, our clients feel safe, and they may or may not want to pay extra for insurance. But, we do offer an optional policy from Lloyd’s of London at 0.2% per-year of the value held. They can always call their agent, Grant Thornton, to visit the box for any reason. There is a cost of $175.00 per visit.Rich: What is the best way to get started with your program?

Kirsten: First, consider what you would like to store. Clients can keep most tangibles in the box, but, offshore clients almost exclusively send gold and silver bullion in the form of coins and bars. Many choose to store metals they already own, and we will help them contact a shipping agent. In any case, to avoid sales tax and customs duty, gold needs to be at least 99.5% pure, and silver 99.9%. Other items may be subject to taxes.Next, you should contact an ASI Preferred Client Relations representative. We are working closely with them and they are familiar with our entire process.

John: Let me add that we look forward to one day seeing you in our beautiful country. It truly is a wonderful vacation destination. All ASI clients and readers are welcome to tour our vault sites in Auckland and Wellington.

Call us at 800-831-0007 or send us an email to protect your assets in the safest and least corrupt country in the world at New Zealand Vault!