In building wealth, we only want one thing: We want safety and protection of our assets. This also holds true in business.
As an entrepreneur, your financial concern, usually, evolves around these two issues: How to generate more profits and how to secure your retained profits.
In term of generating profits, we make efficiency and effectiveness our endeavor; we also find ways to generate more sales, while finding a way to keep prices competitive and costs low.
Meanwhile, when it comes to securing your retained profits, we always find a way to keep them in the form of cash and assets. Not only that, we also need to think about how to secure them.
This article will focus on how to secure your hard-earned cash better, with one-of-a-kind banking solution called 100% reserve bank.
100% reserve bank, defined
100% reserve bank, officially known as full-reserve bank, refer to a banking policy which a bank is required to keep the full amount of depositors’ funds in liquid forms, ready for withdrawal on demand.
In full-reserve banking, your bank will not lend out or do proprietary trade with depositors’ funds, It’s a legal requirement in which a bank chooses and required to comply.
To compare, your typical banks are usually loan out and trade depositors’ fund in order to generate income. Those banks are considered as fractional reserve banks.
Why full-reserve bank?
The reason is very simple: You want security.
The main drawback of a fractional reserve bank is the potential for you not to be able to withdraw your fund for one reasons or another (e.g. YOUR funds are traded in a loss-making investments, large debtors are unable to repay their loans, etc.)
A full-reserve bank, in the other hand, simply refuses any loan requests, as the bank’s generated income is from services provided to depositors, not from interest payments from debtors or capital gain from trades. Let’s just say that a 100% reserve bank can’t afford to lose your trust – or else…
Gold- and silver-backed account, anyone?
100% reserve banking guarantees your funds. But there’s more perks if you open an account with a particular group of banks.
Let’s take this offshore/private bank located in St. Vincent and the Grenadines (SVG). Offering the typical service as other offshore banking jurisdictions offer, such as account privacy, multiple currency accounts, a managed account service, and tax break benefits, this bank in SVG offers one more perk: Gold- and silver-backed account.
Here’s how it works – it’s pretty straightforward, really: Depositors opens a demand deposit account (e.g. a checking account), and the account will be denominated and backed by gold and/or silver via the Perth Mint. This is a partnership between the bank and Perth Mint to offer you a strong, additional security.
In addition to that, you can have a debit card associated with your gold- and/or silver-backed account, which you can use like any other debit cards, with one major difference: Instead of using the typical currencies, you can do transactions using your gold and/or silver funds.
This perk is world’s first. No banks have offered this before.
Learn more about this new banking service in SVG: http://www.icoservices.com/blog-private-banking-in-st-vincent-with-silver-and-gold-backed-debit-cards.html
Why gold- and silver-backed account matters
Well, if you haven’t realized it, let me tell you something: The world’s monetary system is run with fiat money. It’s, by all means, not money: Money is based on goods, such as precious metals. Fiat currency is not backed by goods; it’s based on the value determined by the laws and regulations.
To recap: USD, GBP, JPY, etc. are not money; they are currencies. Gold and silver are real money.
Having a bank account denominated with precious metals mean that your assets technically have real value, making it less vulnerable to economic uncertainties, such as the loss of purchasing power due to inflation and money printing activities done by the Government.
Go private, go offshore!
So, here’s a takeaway for you: If you are not considering offshore banking, you need to start considering it today due to the benefits it offers for you and your business.
If you have decided to take the offshore route to protect your assets, you might also want to open an account with a bank on SVG jurisdiction to access the added-security of having your account backed by real gold and silver.
As always, do your due diligence. Consult with your trusted specialists and financial advisors. Don’t forget to ask around to learn from those who have an offshore or private bank account for securing their personal and/or business assets.
