Miles Franklin – Advantages of Diversifing Geographically

In this episode, Joel Kravitz of Miles Franklin Precious Metals Investments sits down with Maurice Jackson of Proven and Probable at the Sprott Natural Resource Symposium to discuss the merits of purchasing precious metals and having your precious metals in a private storage account in Canada and or the United States. Joel will address general fees, purity of coins, and taxes associated with purchasing and storage.

VIDEO:

AUDIO:

TRANSCRIPT:

Maurice:  

Welcome to Proven and Probable, where we focus on metals, mining, and more. I am joined today by Joel Kravitz of Miles Franklin Precious Metals Investments, and we are live at the Sprott Natural Resource Symposium here in Vancouver. Joel, thanks for joining us.

Joel Kravitz:

Thank you for joining me. Appreciate the opportunity.

Maurice:

Joel, at this conference you’ve had a number of investors that are into precious metals. Some of them are Canadian-based, and we’re US-based. Can you tell us what their biggest concerns have been regarding purchasing precious metals from the United States, specifically Miles Franklin?

Joel Kravitz:   

Sure, we appreciate that. One of the number one points that people never really understand is customs, duties, am I responsible for taxes. The real answer is 24 karat gold, which is what Canada requires to be .995 or 99-1/2% pure, there is no customs or duties on any product, it doesn’t matter where it’s made. If it’s anything less than that, each province is different, and we suggest not to get involved in shipping 22 karat gold coins or something along those lines, but everything else, there’s no taxes to make a purchase, there is no duties, and there is no provincial taxes too.

Maurice:  

All right. Now, your expertise with Miles Franklin is actually with geographical diversification, meaning storage. Talk to investors why they should be geographically diversified.

Joel Kravitz:

Sure. Canada offers an opportunity very different than other countries, and when we talk about geographical diversification, we can choose other countries overseas. We can look at other opportunities. Miles Franklin did look at those other opportunities prior to making the decision of Canada. It wasn’t a opportunity that was placed on us. It was a choice and a program that we looked at and reviewed to determine what made the most sense for our clients and our company. In the end, it came out to be, I want to say, a decision that was made based off of diversification of outside of our country, but the most important part was really to be within the reach of you or the client being able to drive there, fly there, go pick it up, or sell it, and bring it back home. Not to say that’s not available in other countries, but being able to fly to Singapore, Hong Kong, get in those countries in time and need, it might be a lot more difficult. There’s language barriers. It’s not always as easy as said as it’s done.

 

One of the most important things I learned over the last several years was Switzerland acquiesced to the United States for a wide variety of IRS laws that changed. FATCA, Foreign Account Transaction Compliance Act, the 8938 forms, the FBAR forms, I want to say that they suckered up to the United States, but they gave them what they wanted. In turn, other countries can too, and it doesn’t mean that Canada’s better than those other countries and that they won’t either, but I think everywhere is equal. If anyone is going to give up and work with another country like the United States, they’re going to do it, but I think that if you have the opportunity to have it outside of our country and still be able to fly there or drive there, it offers a little more safety net than it does being further overseas for American citizens.

Maurice:

Thank you for sharing that. Now, Miles Franklin, we have a unique opportunity to provide customers with two forms of allocation, don’t we. We have the segregated and we have the safe deposit boxes. Talk about those.

Joel Kravitz:

Correct. Safe deposit box program is our newest program. Segregated storage we have done for almost seven years now. All metals are stored at the Brink’s facilities within Toronto, Vancouver, Montreal. We have a safe deposit box program in Vancouver and Toronto, which the clients can hold the only keys to the box. It is insured. It is segregated because you have the keys, no one else can get to it. It is an opportunity that has not done anywhere else in the world.

Maurice:  

It’s quite unique, and we encourage you to take the opportunity to call Joel and speak to him about the benefits of having such an account. Let me ask one final question here. If I’m US and I have this account in Canada, is there a benefit to me owning Silver Eagles and Maple Leaves, or does it even matter?

Joel Kravitz:  

In the end, it always matters when it’s out of the country. The reason I say that is because not everything’s equal. If it was inside the United States, natural selling wouldn’t matter as much. It would be preference of what is the most popular coin is usually what people like to own. Doesn’t mean it’s the most beneficial way to own it, maybe 1000-ounce bars is better for somebody to store than Maple Leaves being, you know, very big in monster boxes, but in the end there’s no right or wrong in buying.

 

But when you’re in Canada, what offers an opportunity that is not available to other coins is owning the Silver Maple Leaf. What I mean by that is the Silver Maple Leaf is currency of the country of Canada. It is a $5 currency coin designated by the Bank of Canada and the Royal Canadian Mint, and they authorize the Royal Canadian Mint and the banks of Canada to carry and buy and sell this Silver Maple Leaf. That is not to be said of a 10-ounce bar, a 100-ounce bar from the Royal Canadian Mint, or made by anybody. The banks aren’t required to buy and sell it. They do buy and sell them, but they’re not currency coins of the country. They have not been protected by the country. That does give the clients in the United States or anywhere around the world who wants to own the currency of Canada held within Canada, outside the banking system, insured, it offers a little better value than the other types of coins or bars that you could store.

Maurice: 

Joel, thank you for that clarification. If someone listening today wants to get more information regarding precious metals, regarding storage, what’s the contact information?

Joel Kravitz: 

Sure. I think for the best opportunity, if you can feel free to email us. You can email us at [email protected] You can also call us toll-free at 877-375-1325. I would be happy to help you.

Maurice: 

And you’re also more than welcome to email myself, [email protected] Joel Kravitz, thank you for joining us today-

Joel Kravitz: 

Thank you.

Maurice:

… on Proven and Probable.

Joel Kravitz:

Thank you, sir.

Speaker 1:                           Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.provenandprobable.com.

The information presented on Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information is not intended to be and does not constitute financial, investment, or trading advice, or any other advice. You should not make any financial, investment, or trading decision based on any of the information presented without first undertaking independent due diligence and consultation with a professional broker or competent financial advisor.

Proven & Probable

Maurice Jackson

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