Good News for Panamanian Gold Bugs

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Category: Global Perspectives

Published on Thursday, 26 January 2012 09:19

Written by International Man

In some parts of the world, buying precious metals can be difficult at best. Traditionally, one such place is Panama - where metal purchases are indeed possible but not at all as easy as in North America, Western Europe or parts of Asia.

Luckily, American expat Linda Card, who lives in Panama, recently stumbled across a local dealer that appears to offer a level and variety of service that Westerners might appreciate.

Good News for Panamanian Gold Bugs

In some parts of the world, especially parts of Asia, buying gold or silver coins or bars is as easy as buying a pair of shoes or a cell phone. You walk into the neighborhood store, pick out what you want, lay down the cash and off you go. In many places, however, it's not quite so simple. With governments imposing more and more reporting requirements and currency controls, it most likely will get more difficult.

BUYING GOLD IN PANAMA

In the Republic of Panama where I live, there are few reputable places to buy precious metals, especially outside of Panama City. Casas de empeño (pawn shops) and casas de cambio (money exchanges) abound, but neither deal in coins or bullion. As I mentioned in my previous article on buying gold in Panama, one of the banks here - Credicorp - sells gold and silver, but like so many dealings in Panama, you can't rely on consistent policies and procedures. I was told I'd have to open an account and deposit sufficient funds for the purchase. Sounds simple enough, but in Panama it is not. Plus, this eliminates any hope of anonymity.

So I was very pleased to find a precious metals dealer in Panama that makes it easy to buy or sell. International Gold Bullion (IGB) has been in business for 19 years and is managed by Nicola Pirro. Nicola answered all our questions, and he is very responsive to his clients' needs. While their webpage is in Spanish, Nicola speaks Spanish and English, and is easy to reach via e-mail or phone.

IGB's business consists of buying precious metals of any type and quantity; selling precious metals in various forms and any amount; spectrometry and chemical-physical analysis of metals for purity; smelting of precious metals; and valuation of precious metals, gemstones and jewelry.

A VARIETY OF PRODUCTS

According to Nicola, they can offer Swiss gold and silver products in any quantities and sizes produced by refineries such as Argor-Heraeus, S.A. in Switzerland. The one-ounce gold bar is a favorite item, and each one is numbered, sealed, and carries the LMBA stamp (London Bullion Market Association). They also deal in the usual popular coins, including Kruggerands, Maple Leafs, Philharmonics, and Eagles, but on-hand stock will vary. Clients may request specific items, and when available, Nicola will advise. While gold and silver are their main products, they can also obtain platinum or palladium by special request.

IGB is very competitive regarding premiums. Nicola says, "We can go for a maximum 4.5% over spot (for gold) to a very low commission for 50 ounces or more... Prices of silver depend on quantities, but we are very competitive." For junk silver, his commission was 3% over spot a few months ago. These amounts are for in-person transactions at either of their two Panama City locations.

FAVORABLE TAX LAWS

In Panama, most local purchases are subject to 7% ITBM tax (Impuesto de Transferencia de Bienes Muebles, or Tax on Transfer of Movable Goods - i.e., Sales Tax). However, purchases imported directly from another country are not subject to the ITBM tax. When dealing with IGB, Nicola says, "the sale is really made from Switzerland to the client," and so no tax is due. IGB is very knowledgeable and conscientious about tax issues, and conforms strictly to all Panamanian tax laws, Nicola stresses. He adds, "The client will receive all customs papers to demonstrate a legal importation." IGB may request personal data from a client to assure a legitimate transaction, but all data collected is strictly confidential.

As a full service market maker, IGB will buy product, "no matter the [spot] price," Nicola tells us, for 2% below spot or less, depending on quantity. In addition, they are in the process of expanding to provide storage services. "We are actually finishing a vault with all high security standards for allocated products. It will be private and only for our clients," Nicola informs us. He expects this to be ready within two months, which is good news, considering the shortage of storage options available in Panama.

If you are already living or spending part of your time in Panama, IGB may be a valuable resource to help you in your asset diversification efforts. With storefront locations in both the El Dorado and Obarrio sections of Panama City, now buying precious metals is about as easy as buying a pair of shoes.

[PLEASE NOTE: The publishing of this article does not imply an endorsement of the services being offered. Rather, it is simply an option for Panamanian based readers who might be looking for places to purchase metals. As always, please conduct your own due diligence before engaging in any business.]

Tags: buying gold in Panama , gold , gold storage , gold tax , Panama , precious metals , silver