Buying Gold in Panama
- Details
- Category: Global Perspectives
- Published on Monday, 04 July 2011 05:00
- Written by International Man
Buying Gold in Panama
By Linda Card
In today’s changing world economy, more and more people are buying gold and silver to protect their assets. As the baby boomer generation reaches retirement, more and more are moving outside the US and Canada seeking a lower cost of living. The Republic of Panama is one of many desirable retirement destinations. But can you buy gold and silver there? The answer to this question is yes, but it’s not easy. Since we moved to David, Panama two years ago, my husband and I have been researching this, and it may be helpful to others to share what we’ve learned.
We have found only one individual gold and silver broker operating in Panama. His home base is in San Jose, Costa Rica, and he has a representative in Panama City who occasionally makes trips to David and Boquete (located in Chiriqui province in western Panama). He sells gold and silver coins and bullion, and charges 7.5% commission. Exchanges are in person, cash only, anonymous, with no records. We only know the dealer’s first name, and it’s probably not even his real name. Purchases are limited to what he is able to obtain, and what he is willing to sell. As far as we know, he’s the only game in town.
While there are plenty of “empeños” (pawn shops) in Panama, we have yet to find one that deals in gold or silver coins. They buy jewelry, but not coins.
There is one bank in Panama that sells gold – Credicorp Bank. In order to buy gold from them you must first open a bank account. Sounds simple, but it’s not. You must provide bank and personal reference letters, proof of your income, income tax returns for the last five years, as well as identifying information. Once you provide all the documents they require, your application goes to the main bank in Panama City for review. Fewer banks are accepting clients from the US these days (thanks to the ever-expanding reach of the US Treasury Dept. and the IRS), but if you’re lucky, they may allow you to open an account.
Next you must deposit a sum in your account sufficient to cover the cost of the gold you wish to purchase. Then there’s additional paperwork to be completed, and another review process. Once approved, payment for your gold is deducted from your bank account. You must go to the main bank in Panama City to take physical possession of your gold. Of course, all of this takes time (days, weeks?), so there is no way to make a quick purchase when the price is right. The transaction is duly recorded and documented with a very clear paper trail for the US agents who may come along at any time and demand to see the bank records.(Of course you have done nothing illegal or even suspect, but try explaining that to the “you are a tax evader until you prove otherwise” IRS.)
Exchanging currency is equally difficult in Panama. There is no place in Chiriqui province to exchange, for example, US for Canadian dollars. Banks don’t do it, and there are no money exchanges in Chiriqui. I understand there are “casas de cambio” (money exchanges) in Panama City, but I have no personal experience with them.
In these areas, I think that Panama does not live up to its reputation as a world class banking center. So for anyone thinking that Panama is the place to buy gold or silver, or exchange dollars, be advised that it can be done, but not quickly or easily. This report is based on our personal experience, and I would be glad to hear from anyone in Panama who has more information.
john macdonald
Posted at 2011-07-05 01:18:43
I lived in Panama for several years and still travel there a couple times a year. A few years ago you could buy gold coins from Banco Nacional de Panama, the main branch in Panama City, albeit with a fairly high premium. Maybe it's still possible, but probably not, the way things are changing in the Panamanian banking system. It used to be not to difficult to open a bank account in Panama, but now it's almost like they don't want any accounts from US citizens. Too many problems. I believe it's going to get to the point where some banks are going to ask their long time US clients to close their accounts.
I live in Mexico. It's quite easy to buy gold coins here from Banco Banamex, gold centenarios, 1.257 oz. The price follows the spot market and the premium isn't to high, a little lower than the larger gold dealers in the US. It's safe and fairly easy, if the branch has any coins. Sometimes you have to check with several branches to find what you are looking for.
This is a rumor. But it very well could be true. A good friend of mine who has lived in Panama for several years, is fluent in Spanish, and a fellow gold bug has told me that in one or some Panamanian banks, some bank employes are working with the IRS and selling information on US Citizens.If true this could be a game changer.
Also remember that safe storage for precious metals and or other valuables is very difficult to find in Panama. If you store at home, be very carefull. NOBODY should know, or you could become a target.
Hugh
Posted at 2011-07-05 01:31:58
My wife and I have been in Panama for three years and have had no trouble buying gold. Our biggest purchase of coins was at Credicorp Bank where we do NOT have an account. They were quite happy to give us a quote up-front and we paid by cashier's cheque. This was a year ago and the rules may have changed but we got an excellent price.
Also, there is a precious metals dealer in Panama City who has two shops; one in Obarrio and one at el Dorado. We have not yet dealt with them but have spoken on the phone. They say their price is 5% above the current quote for purchases and 5% below for sales with some consideration for volume.
We are told there are other sources but have not had the need to check these out. We enjoy excellent banking and brokerage services from a variety of sources. It is essential to have a good lawyer who can make all the necessary arrangements and deal with the paperwork. Panama is trying hard to comply with all the rules being imposed by the OECD, IMF and US government in order to get the Free Trade deal passed in the US senate.
Although Chiriqui Province, David and Boquete are lovely areas for farming and outright beauty, they are in the wrong part of the country to get any financial business done. I would be very wary of any guy selling precious metals like a travelling salesman who only uses his first name.
Linda Card
Posted at 2011-07-05 01:32:57
Hi Wayne- the website I referred to in my article is www.gold.cr, or www.golddealer.com.pa. We found it by doing a Google search.
John makes some good points , with which I agree. Thanks, Linda
Adam
Posted at 2011-09-03 02:57:27
I have invested in precious metals for some years now and I am currently using Ordene Metals, they ship 999.9 gold bullions world wide and they sell their gold at 0.5% above spot price. I honestly haven't found any other dealer to sell their gold at prices that are so close to the Gold Spot. I would definitely suggest you check out their website ordenemetals.com. I bought a few months ago about 20 troy ounces and they gave me a great price.
David
Posted at 2011-10-23 17:34:46
I am a gold and silver broker here in Panama. If you are interested in buying or selling, please give me a call at 6407-0019.
Posted at 2012-04-02 15:09:41
If you are interested in buying or selling, please come to IGB now in Ave. Obaldía, David, Chiriquí, tel. 7301291.
wayne rickert
Posted at 2011-07-05 00:43:26
Can Mrs Judy Card who lives in Panama, give the name of the company in Costa Rica who sells gold and silver? I live in Costa Rica half of the year, and have looked for a broker there without any success. Thank you, Wayne Rickert, Bradenton Florida/ San Jose, Costa Rica
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