PROBLEM:
The debtor decides that instead of investing in stocks and bonds, he’s going to put his money into gold, and then takes pains to hide this investment from creditors.
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SOLUTION:
Gold investments come in various forms, including gold certificates issued in the U.S. by gold pool programs, gold futures, gold miner exchange traded funds (ETF), and gold bars and coins.
Some of these investments will appear in the debtor’s tax records. For instance, gold futures are usually managed by commodity trading firms, and are declared for tax purposes. Given the volatility of gold prices, the debtor may choose to sell his investment. If a sale is made, any profits on the sale must be reported to the IRS. ETFs are tradable on the stock exchange, therefore any trading will generate a paper trail and may also result in declarations to the IRS.
Interestingly, some ETFs allow investors to monitor the company’s gold vaults via cameras accessed online. The investment may therefore be revealed after an inspection of the debtor’s online activities.
If the debtor opted to invest in gold bars or gold coins, then circumstantial evidence may help lead to the gold. A review of the debtor’s financial records may indicate whether the debtor has invested in additional security to protect his investment, be it a safe, security cameras or staff, or the rental of a safety deposit box. Furthermore, his financial records should be checked for payments to services hired to help deliver the gold, including armored car rental companies.
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