Invest in Golden Passport for the Sake of Portfolio Diversification

Gold is a precious metal that is a highly liquid non-correlated asset. This makes gold an optimal asset diversification instrument in the long-term perspective. However, gold cannot be used as an instrument for acquiring other non-correlated assets while a golden passport can.

Any investor knows that the portfolio that he or she holds has to be diversified. Acquiring a golden passport can be thought of as an addition to your stocks portfolio. History shows that economic disasters can happen quite unexpectedly and having a diversified portfolio is especially important in today’s unstable world.

History shows that you have to invest in non-correlated assets such as a golden passport

Alexander Fordyce came home as drunk as a skunk on June 9, 1772. It was not typical of him at all, as the man was a respectable London banker, a senior partner in the Neal, James, Fordyce & Down bank. No wonder, Fordyce’s wife and other family members were very much worried.

Next morning, Fordyce left London, crossed the English Channel and fled to France. Soon the newspapers announced bankruptcy and closure of the aforementioned bank. Of course, banks had gone bankrupt before and it was not the first time when the banker fled. But Fordyce used the clients’ money to make some awful investments.  

Fordyce had borrowed so much money that the news of his bank’s bankruptcy nearly crashed the European financial system. The stock value fell dramatically. The banks closed the doors fearing that the clients would start withdrawing money one by one. The financial market of the Netherlands in particular suffered greatly.

In an attempt to increase tax revenues, stabilize the economy, and help out the East India Company, the British Government passed the notorious ‘tea law’. The law gave the East India Company exclusive rights to sell tea in the North American colonies.

The ‘tea law’ was highly unpopular in the colonies. The passage of the law resulted in the well-known ‘Boston tea party’ that signaled the beginning of the American war for independence from Great Britain.

Did Fordyce trigger the war for independence in America? Probably. Of course, there were numerous other factors involved too but this story shows that a single event may lead to a chain reaction whose consequences can be far-reaching.

History repeated itself in September 2021. Many investors and brokers became very nervous when they heard the news about one of the largest Chinese development companies called Evergrande. The company declared a default on its obligations while the debt was colossal.  

Investors were afraid that a chain reaction of bankruptcies might follow similarly to the situations in 1772 and in 2008 when Lehman Brothers bank collapsed.  

Probably, the Evergrande problem is not going to affect the world market too much. After all, the company’s debts amount to 300 billion US dollars while the aggregate capital of the Chinese banking system is more than 5 trillion dollars.

The situation with Evergrande teaches an important lesson, however. It reminds us once again that the collapse of one giant company might affect the financial markets in the whole world. Especially at the present moment.

The prices of shares, bonds, real property, and many raw materials are breaking the historic maximums. Some prices are simply absurd, experts agree. Today, the price/ profit ratio of an S&P 500 company is 50% higher than it was before the pandemic. At the same time, the gross incomes and the net profits of these companies have become only a fraction higher than they were in January 2020, before the crisis started. And the prices of the company shares are considerably higher. The situation is truly absurd and S&P analysts say in unison, ‘The market has gone crazy’.

When the stock value is as high as it is at the moment, there is always a risk that the bubble can burst. The bankruptcy of a large market player such as Evergrande, for example, might lead to a ‘global sale’.

Non-correlated assets, however, are the types of assets that are not directly correlated with the stock market. Thus, the value of non-correlated assets is not going to drop even if national governments start printing more money, as many of them are doing now.

There are not too many types of assets whose value does not depend on the situation in the stock market and the policies of central banks. Intellectual property that is capable of contributing to cost reduction/ performance improvement can serve as an example of such assets. A golden passport, however, is the best non-correlated asset that can be found.

Invest in your future by obtaining a golden passport

Second citizenship will make you less dependent on inadequate decisions taken by your home country’s authorities. It will also open a vast number of new opportunities for you.

The fastest way to acquire foreign citizenship is to invest in a golden passport by applying to a special economic citizenship program. The process will take between six weeks and three years depending on the country. The required investment amount starts at US$ 100,000. The process of golden passport acquisition is confidential and foreign citizenship can be obtained remotely in many cases.

What bonuses can an investment immigrant obtain when diversifying his/ her portfolio by acquiring a golden passport?

A European golden passport will give access to new markets

If you apply for a golden passport of Montenegro or Malta, you will thus obtain wonderful business opportunities in the European market. An entrepreneur who is a European citizen can enjoy a greater number of advantages in Europe in comparison to a foreign investor.

Favorable business environment, qualified workforce, high purchasing power, advanced technologies – a businessperson will find multiple advantages in Europe.

A Caribbean golden passport will help save on taxes

Acquiring second citizenship by investment can bring serious tax benefits too. If you apply for a Caribbean golden passport and become a tax resident in the country, you may be able to reduce your global income tax to zero.

For instance, citizenship of Antigua and Barbuda by investment allows avoiding the personal income tax on incomes derived from outside the country. Saint Kitts and Nevis offers a similar opportunity. Some additional tax benefits include the absence of inheritance tax, gift tax, and capital gains tax in these countries.

Any golden passport will simplify investments and give access to international banking services

A golden passport will make your interaction with international bankers smoother. They try to avoid dealing with the holders of ‘toxic’ passports such as the passports of the sanctioned countries. When you hold a European or a Caribbean golden passport, you do not have to reveal the name of your home country to the banker.  

Expert support to those wishing to acquire a golden passport

International Wealth portal assists well-to-do individuals in obtaining legal residence permits and passports of foreign countries. We guarantee that the golden passport acquisition process is going to be transparent, legal, fast, and efficient.

We are in close cooperation with immigration agencies located in the countries that grant their citizenship to foreign investors. Our experts will be happy to guide you through the application process and help you diversify your portfolio by investing in a golden passport.

If you are not sure what country you should choose to make it your second home country, we will help you make the choice based on your goals and preferences. If you are interested in a particular country, we will openly tell you about all the advantages and disadvantages of acquiring citizenship of this country. Please contact us by email, a messenger or our online chat and we will get back to you in no time!