TIP OF THE WEEK - A New Recommendation For Purchasing Foreign Currencies to Guard Against the Dollar Decline

A New Recommendation For Purchasing Foreign Currencies to Guard Against the Dollar Decline

Jason Brizic

August 12, 2011

Back on May 20^th, 2011 I wrote a Tip of the Week advocating the use of Everbank to buy foreign currencies.  It was titled: How to Buy Foreign Currencies in the US to Guard Against a Dollar Decline.  I subscribe to Gary North’s wonderful website (www.garynorth.com).  I consider him a mentor in the areas of Austrian economics and entrepreneurship.  He has just brought some new information to light regarding Everbank.  You should find another company from which to purchase foreign currencies.  There is a new recommendation at the end of his article.

* * * * * * * * * *

A Warning to All Everbank Clients

Gary North
Aug. 12, 2011

Because I have publicly recommended using Everbank as a way to hold foreign currencies, I am posting this report. I no longer recommend the firm.

I have forums on my site. Members discuss problems. This was posted a week ago.

Well I just got a eye opening about "our" banking system and privacy rules. I made a purchase of coins from the Moneychanger, and set up a wire to transfer the funds (over $50k) to his bank. I set it up online thru my bank (Everbank) that night, for transfer the next day. The next morning, I get a call from Everbank, asking about the transaction. They want to know what this is for. I told them its for a purchase. They ask what was being purchased. I asked, "what does it matter". She wanted to know if it was for my business, and I said no. She kept asking what the purchase was for, and need to know before the wire goes thru. I said I authorized the wire and know who its going to and trust them, and its not their business to know what I am buying. She said they are federally regulated, and need to know. After going round and round with her, she finally said she will write down and note what I have said. After I got off work and came home and checked to see that it still didn't go thru. I called them back and talked to a supervisor. She said the same thing, and I asked for her to email me the documentation that says they have to know what I'm buying. After asking that several times she said there's no documents, but its under the "Know Your Customer". ( I knew I would eventually deal with this somehow). She said they have the right to not send the wire transfer if they don't know about it. So I told her it was for an investment. Then naturally she asked, what kind of investment, which I replied, its private. After going round and round with her, she said she would not send the wire. I asked to talk to her supervisor, and she said she would have her call me. Then after about an hour, the lady I was talking to called me back and said she did some research into the place I was wiring the money to, and found it was a precious metals dealer, so she said she would send the wire thru. I'm still in disbelief this happened. I was going to just send a check , but I'll bet they would of stopped it or frozen my account, after that conversation I had with them. Not sure if anyone else had something like this happened to them, and I'm not sure how to handled it any differently next time. So beware!!!!

http://www.garynorth.com/members/forum/openthread.cfm?forum=1&ThreadID=23672#116597

I followed up with Everbank to assess this. On August 5, I contacted the bank by email here:

https://www.everbank.com/contact.aspx

I told them who I was. I told them what I was about to do. (This article.) I asked them to have Chuck Butler contact me by phone. He and I have known each other for years. He writes the bank's daily column: http://www.dailypfennig.com.

Chuck never called. I have no doubt that he would have called, had anyone told him. I have drawn this conclusion: my request was not forwarded to him.

I received no response from anyone at customer service.

I am hereby withdrawing my recommendation for Everbank.

I will not deal with any financial agency that demands to know what I want to do with my money. I believe that the institution has no business asking.

I recommend that any Everbank customer write to the bank and ask for a response in writing. Ask the bank if it is bank policy to demand full disclosure from its customers about what they intend to do with their money before the bank will release any money in the customer's account. See what response you get. Then decide what you should do.

You have a substantial profit in your Everbank account if you bought the currency I recommended in the spring of 2009. You must decide whether it is worth paying the tax by canceling the account and moving it elsewhere. It may not be. But I recommend that you have another bank or institution in mind where you can transfer your funds whenever you decide to close the account. Do not tell anyone at Everbank what you intend to do with your money. Just get it out.

If you want a hard money account, I recommend that you use Merkfund. It does not have FDIC insurance. But it does not ask snoopy questions about what you intend to do with your money. I have found their customer service team to be responsive.

For more tips, go here:

http://www.myhighdividendstocks.com/category/tip-of-the-week