Offshore Investing: My Gold Rock (26%) Outperformed the S&P 500 (23%) and Your Financial Advisor
- Steven Schaerer
- Nov 16, 2024
- 16 min read
Updated: Feb 6
Gold: A 6,000-Year Legacy of Wealth, Resilience, and Smart Investing in Uncertain Times
"Gold is tried by fire, brave men by adversity." — Seneca (4 BCE–65 CE), Roman philosopher, statesman, and advisor to Emperor Nero, from 62 AD (Rome).
America by the Numbers: According to data from JPMorgan, "the average US retail investor holds around $60,000 in their stock market portfolio."

For over 6,000 years, gold has been at the center of human civilization—a symbol of wealth, power, and resilience that transcends borders, race, cultures, religions, and eras. The first recorded human interaction with gold dates back to around 4,600 BCE, at the Varna Necropolis in modern-day Bulgaria. This ancient burial site contains the oldest known gold artifacts, including jewelry and ceremonial items, symbolizing status and wealth. These artifacts predate even the Egyptian treasures by over a thousand years, highlighting gold’s enduring allure as one of humanity's earliest obsessions.
From the ancient tombs of Varna, dating back to around 4,500 BCE, to the first gold coins of the Roman Empire nearly 4,500 years later, gold has served as both a medium of exchange and a store of value, enduring as a timeless symbol of wealth and stability, outlasting empires and currencies alike. Its unyielding appeal and imperviousness to decay have made it the ultimate measure of stability and wealth throughout millennia.
In Rome, during the height of its empire, the Stoic philosopher Seneca famously reflected, “Gold is tried by fire, brave men by adversity.” His words underscore a timeless truth: like the refining process that reveals gold’s purity, true strength emerges through trials. Seneca’s insight resonates deeply in today’s volatile economic landscape, where traditional investments are being tested by fire.

The modern American investment landscape is no exception, echoing the transformative shifts seen in economies throughout the course of human history. Once-reliable strategies, widely employed by financial advisors across America, are now projected to fall short compared to the market-beating performance of years past.
This mindless era of “set it and forget it” investing, once synonymous with record-breaking returns in overly simplistic index funds, is slowly coming to its inevitable end. This novel American bubble-that-never-bursts miracle could have only lasted for so long. Don’t just take my word for it—global financial headlines are sounding the alarm with these urgent warnings:
India: "US has gone too far and become a 'bubble of epic proportions'"
China: "Experts: The US bubble is unprecedented. Once it bursts, the US will be doomed."
Russia: "US set for another dot-com-style crash, fund manager warns"
The brightest financial minds and media outlets across the globe, appear to be acutely aware of something significant, cautionary, and deeply unsettling on the horizon—something rarely, if ever, discussed by the average American financial advisor or mainstream American financial media. What is it that the rest of the world seems to know, but Americans don’t?
The Gold Standard Returns: Navigating the End of American Market Dominance
For decades, professional American investors were able to miraculously achieve extraordinary investment results while largely only having to master one language, understand one economy, and invest in a single country: the United States. Their secret? Those miraculous returns were predicated on a world where the epicenter of everything from finance to trade was consolidated in one singular country: America.

But that was then, and this is now. What happens when the pieces on the chess board are fundamentally rearranged? The world today has experienced a fundamental and rapid transformation into a multipolar global economy, where the United States is no longer the de facto epicenter of trade, finance, and influence. This new reality is ushering in a dramatic decline in the dominance and significance of the American economy, and with it, the illusion of the once invincible American stock market.
And what does this rearranged chessboard look like through a quantitative lens? The data below illustrates the rise of a new multipolar world, led by BRICS, in contrast to the relative declining relevance of the G7 over the past few decades:

While Americans investors were mindlessly pouring money into this domestic economic 'wonder drug,' their global peers were busy mastering a third or fourth language, working collaboratively with global investment offices, and cultivating a deep understanding of complex market dynamics worldwide. In other words, global investors didn’t have the luxury of leaning on hopelessly overvalued stocks in a seemingly unshakable domestic market that defied logic year after year.
Today, we find ourselves teetering on the edge of a precipice, one final bubble burst away from saying goodbye to that era forever.
For American investors seeking positive yield in this new reality, the path forward will require a significantly higher level of effort, a more cerebral approach and rethinking unconventional asset classes. Succeeding in this new era of investing will require U.S. financial advisors to work harder, look abroad, and embrace contrarian opportunities that they would have once laughed out the door. Moving forward, American financial advisors will finally have to roll up their sleeves and do the same heavy lifting that their global peers have had to do for decades.
Sadly, as I’ve seen with corrections in the real estate market, many real estate agents are simply unable to withstand the harsh realities of a market crash. In one recent instance, the number of full-time real estate agents and brokers fell to 440,000 in 2023, down more than 70,000 from the year before, according to the Bureau of Labor Statistics. Similarly, as this economic transition plays out over the next 20 years, I expect to see a similar exodus of financial advisors fleeing the profession as well. I do not believe that American financial experts are adequately prepared today, and as pressures continue mount, I anticipate a similar exodus of investment professionals from the financial industry.
And what unsuspecting monetary icon will be at the forefront of this seismic shift?
The chart, based on my research, illustrates the annualized returns of the S&P 500 and gold from 1995 to 2024, revealing a significant trend of gold's returns consistently beginning to outpace those of the S&P 500. This upward trajectory in gold's performance underscores its growing appeal as a reliable investment, particularly as a hedge against market volatility, economic uncertainty, and inflation.
I expect this trend to continue well into the future, as global investors increasingly turn to gold for stability and value preservation in uncertain economic environments. This data solidifies my belief in the shifting dynamics of investment preferences and positions gold as a robust alternative to traditional equity markets.
In my view, it is only a matter of time before this global trend firmly establishes itself as the prevailing norm in the United States.

And 2024 has been no exception.
With year-to-date returns having exceeded 30% and outperforming the S&P 500 during one of its historically strongest years, gold continues to defy conventional American investment wisdom and reaffirm its role as the ultimate store of value. While the rest of the world—from India to China and Russia to Saudi Arabia—are actively restructuring their economies around this shiny rock, you'd be hard-pressed to hear a word about this golden revolution from the American investment class or US financial media. However, as the relevance of the American economy continues to fade year after year, gold has reemerged as a critical benchmark that American investors will soon be forced to reevaluate if they want to survive this new financial ecosystem.
The End of the Traditional American Investment Model
Once the epitome of financial ingenuity and wealth creation, American financial institutions now find themselves faltering in an era of shifting economic realities. The investment strategies that once delivered consistent and predictable growth are now buckling under the weight of global competition, economic uncertainty, and outdated paradigms.

To grasp the gravity of this decline, consider these sobering forecasts from leading financial institutions in the United States:
J.P. Morgan Securities: Predicts annual returns on the S&P 500 will hover at just 5.7%, half of its post-WWII average.
Goldman Sachs: Forecasts an even bleaker outlook, with annual nominal returns of just 3% over the next decade—barely enough to keep pace with inflation.
And it’s not just grim forecasts—the real-world data unveils a deeply unsettling reality that underscores the systemic issues plaguing American financial institutions. These aren’t isolated incidents or short-term setbacks; they are part of a larger trend reflecting poor management, misaligned priorities, and an inability to adapt to the shifting economic landscape.
From pension funds to elite university endowments, the cracks in the foundation are becoming impossible to ignore, with billions of dollars evaporating and confidence in these institutions eroding. Let’s examine the evidence:
CalPERS: The largest U.S. pension fund reported a 6.1% loss in 2022, wiping out nearly $60 billion. Despite its size and influence, it remains only 72% funded.
Ivy League Endowments: Prestigious institutions like Harvard, Princeton, and MIT have posted consecutive losses for the first time in decades, signaling broader challenges in institutional investing.
The era of “set it and forget it” investing is dying a slow and painful death. And the best and brightest investment minds the United States can produce will likely rather go down with the ship than admit defeat and buy gold.
The Math Speaks: Inflation vs. Returns
But don't take my word for it. The numbers don’t lie, and they reveal a sobering reality for the average American. According to the Bureau of Labor Statistics, the official U.S. inflation rate in 2023 was 4.1%, a figure that may appear modest at first glance but carries profound implications for long-term financial health:
Purchasing Power Decline: $100 at the start of 2023 was reduced to $95.90 in purchasing power by 2024—a 4.1% erosion in just 12 short months (compounding effects are ignored here and in the following calculations).
Compounding Impact: If we instead started with $100 in 2022, compounding inflation would have reduced your purchasing power to approximately $91.97 by 2024—a nearly 8% decline in just two short years. This demonstrates how the cumulative effects of inflation can significantly erode value over time, even when annual rates appear modest.
Erosion: Over time, the effects of compounding inflation accelerate this decline, steadily chipping away at the value of your savings.
In practice? Here's what that looks like for the average American:
For most Americans, this means that traditional investment vehicles are failing to keep up. With predicted returns of 3% to 5%, even so-called “safe” options like U.S. Treasury securities or high-yield savings accounts offer little more than a break-even proposition. At best, they barely outpace inflation; at worst, they result in net losses in real terms.
Even with what investors generally consider to be a historically good 7% annualized rate of return on your investments, you're barely scraping 3% after accounting for inflation. And at 5% in a "high yield" savings account or U.S. Treasury security, that's much closer to 1% year-over-year. These numbers, in my opinion, are subpar and largely self-defeating.

And this assumes the 4.1% inflation rate is accurate. Many economists argue that these figures significantly under-reporting the true rate of inflation, with some economists placing the real number in the double digits—exceeding 10%.
Now, let’s imagine for a moment that the real rate of inflation is indeed 10%. That $1,000 sitting in your bank account would lose 10% of its purchasing power in just one year, leaving it effectively worth only $900. Even if you placed that money in a so-called “high-yield” savings account offering a 5% return, you’d still face a net loss of 5%—a $50 decline for every $1,000 saved. Gold, on the other hand, as a proven hedge against inflation, would have delivered a positive 20% return, turning that same $1,000 into $1,200—a $200 gain that preserves and grows your wealth in an inflationary environment (compounding effects are ignored in calculations).
Again, if you’re not investing or aware of the tragic impacts of inflation, the real-world compounding effects are catastrophically devastating for the average American:
The takeaway is clear: relying on conventional strategies is no longer enough to preserve or grow wealth in today’s economic environment. So, how do Americans stay ahead of inflation, which steadily erodes their purchasing power year after year? One of the less complex answers lies in turning to one of America's most hated assets with a proven track record of 6,000 years of recorded human history.
The Gold Test: A Simple, Unassuming Winner
Among all asset classes, gold stands out as a timeless solution that continues to outperform even the most sophisticated financial strategies. In 2023, gold achieved an impressive 28% year-to-date (YTD) return, outpacing:
Strong Market Performance: The S&P 500, which delivered a historically great 24% YTD return.
Inflation: by an extraordinary margin of 23.9%.
And yes, the world noticed. Gold’s appeal isn’t limited to individual investors seeking a hedge against inflation—instead it’s at the center of a growing global shift. Across the world, countries are increasingly turning to gold as a cornerstone of financial stability and trust:
Russia and China have aggressively increased their gold reserves, with both nations using the precious metal as a strategic counterweight to the U.S. dollar in global trade and finance.
India, one of the largest consumers of gold globally, sees unwavering demand among its people, who view gold as a secure store of value and an essential cultural asset.
Poland has significantly bolstered its central bank reserves in recent years, publicly emphasizing gold’s role in safeguarding the country’s financial future.
Saudi Arabia and other nations in the Middle East are diversifying their investments, leveraging gold to anchor their wealth amidst regional and global uncertainties.
The Bank of International Settlements (BIS) in Switzerland, often referred to as the central bank of central banks, has officially labeled gold a Tier 1 reserve asset, reinforcing its enduring importance in global finance.
But wait, there's more! It's not just the rest of the world buying up as much gold as humanly possible! Slow and steady, golden floodgates are beginning to open in the US as well.
Sound Money Defense League: 45 U.S. states are actively enacting precious metals friendly legislation and have removed some or all taxes from the purchase of gold and silver.
Costco: is now selling between $100 million and $200 million worth of gold and silver each month, according to a recent estimate from Wells Fargo.
J.P. Morgan Private Bank: Leading U.S. financial institutions have recently stated that they are, "constructive on gold" and that, "for long term investors, gold merits a position in a diversified portfolio".
The World Bank: American led institutions like the World Bank are now creating handbooks instructing asset managers on how to invest in gold.
This very recent global and domestic pivot toward gold reflects a profound and growing distrust in fiat currencies and a recognition of gold’s enduring reliability. Whether held by central banks, sovereign wealth funds, or individuals, gold remains a universal constant—a tangible asset untethered from the volatility and uncertainty plaguing other markets.
As the rest of the world solidifies its faith in gold, American investors may be missing out on one of the most significant wealth-preservation opportunities of our time. The question isn’t whether gold will remain a key player on the global stage, but whether Americans will join the movement before it’s too late.
Why the System Hates Gold
As gold continues to demonstrate its resilience and ability to outpace traditional investments, one might wonder why it remains a pariah within much of the American financial system. Try mentioning gold in your next meeting with a licensed American financial advisor, and watch as the color instantly drains from their face, leaving a mixture of sheer disbelief and anger. Trust me, I've tried. The issue isn't with gold's record-breaking performance but with what it represents: a direct challenge to the complex, fee-driven structures that underpin the traditional financial system.
Gold’s simplicity is its greatest strength—and thus arguably the greatest threat to this dying system of 'just invest everything in American stocks'. Consider this:
No Management Fees: Gold doesn’t require management fees, algorithmic trading strategies, or a team of quants to generate returns. It simply exists as a store of value, immune to the inefficiencies and overcomplications that dominate modern financial markets.
Consistent Outperformance: It quietly outperforms hedge funds, pensions, and Ivy League endowments, often with none of the fanfare or risk that accompanies their operations.
Disruption to Complexity: A multi-trillion-dollar industry built on complexity and control simply can’t compete with a tangible asset that doesn’t rely on intermediaries to deliver results.
This simplicity exposes a glaring vulnerability in the American financial ecosystem: its reliance on layers of management, opaque practices, and an illusion of necessity. Gold’s success highlights how much of the system’s complexity is designed not to create value but to sustain itself—through fees, commissions, and strategies that often benefit the institutions far more than the investors.
This is precisely why gold is despised by many in the financial establishment. It undermines the very foundation of their business model, offering a straightforward alternative that requires neither trust in institutions nor reliance on intricate, profit-driven mechanisms. In a deceptive world saturated with horror stories like Enron and FTX, gold stands apart—untouched by human manipulation and immune to the greed that fuels such scandals. In a world increasingly drawn to transparency and efficiency, gold’s timeless appeal is slowly disrupting everything.

Having now purchased precious metals for 15 years, who do I trust for offshore gold buying, vaulting, and shipping?
For me, the answer is clear—BullionStar. With a seamless online platform, ultra-secure vaulting facilities in Singapore, and direct ownership of allocated gold, BullionStar makes offshore gold ownership simple and transparent. Unlike the convoluted mechanisms of the financial industry—riddled with hidden fees, counterparty risks, and unnecessary complexity—BullionStar operates with integrity, ensuring that what I buy is what I own. Whether I need to purchase, store, or ship my holdings internationally, BullionStar offers the ideal solution for those who see gold as a safeguard against financial uncertainty.
A Global Perspective: The BRICS Shift Toward Gold
While many U.S. investment professionals shy away from gold, viewing it as a relic of the past or an unproductive asset, their global counterparts are taking a very different approach. Around the world, gold is embraced as a cornerstone of financial stability and a hedge against economic and geopolitical risks.
Central banks in countries like China, Russia, and Poland are leading the charge in stockpiling gold. For these nations, gold represents not just wealth but sovereignty—a shield against the volatility of global currencies, particularly the U.S. dollar. China, for instance, has significantly increased its gold reserves as part of a broader strategy to reduce dependency on dollar-based assets, signaling its ambitions for economic independence on the world stage. Similarly, Russia has used gold to insulate its economy from sanctions and economic pressures.
As BRICS nations collectively explore alternatives to the dollar in trade and finance, gold is emerging as a cornerstone of their efforts to reshape the global economic order.
Beyond governments, private investors in these countries are also prioritizing gold. Billions of dollars are being invested in physical assets like gold bars and coins, moving away from the paper investments such as stocks and bonds that dominated the past few decades. This shift highlights a growing skepticism of intangible financial instruments, such as derivatives and fiat currencies, which are increasingly seen as vulnerable to systemic risks.
In the global market, gold is more than an investment—it is a cornerstone of financial security, a hedge against inflation, and a store of value that transcends borders. While many in the U.S. are slow to recognize this shift, international investors are actively seizing the opportunity, building their portfolios on a foundation of enduring value. The global embrace of gold offers a powerful reminder: in uncertain times, the world turns to assets with over 6,000 years of proven resilience.
If gold was good enough for the Egyptian Empire, the Persian Empire, the Roman Empire, the Islamic Caliphates, the Chinese Empires, the Kingdoms of Africa, the Spanish Empire, and the British Empire, I'm confident it’s good enough for you.

The Final Nail in the Coffin: The Collapse of Trust in American Financial Institutions
Finally, one of the strongest reasons to invest in gold—beyond its impressive double-digit returns—is its unmatched ability to eliminate counterparty risk.
And why does counterparty risk matter in the modern era? Well, it could literally cost you everything.
American financial institutions have proven that they are simply no longer reliable, increasingly systemically corrupt, and no longer the global standard of finance. But don’t just take my word for it—here’s the sobering data:
Government Fines: The SEC announced enforcement results for fiscal year 2023, filing 784 enforcement actions, obtaining orders for nearly $5 billion in financial remedies, and distributing $1 billion to harmed investors.
Technical Incompetence: A nationwide issue at Bank of America (America's 2nd Largest Bank) left over 20,000 customers with zero balances, according to company officials and outage monitoring websites.
Debanking: 30 tech company founders reported being debanked (having their bank accounts haphazardly shut down) over the past four years, highlighting growing instability and selective exclusion within the financial system.
Fraud: Consumers reported losing $210 million to fraud on payment apps and services in 2023—an increase of 62% from two years prior. Meanwhile, bank transfer and payment fraud losses surged by nearly 150%, reaching $1.9 billion. Yet it’s often very difficult for consumers to retrieve money sent to bad actors. The big banks that run Zelle in particular “rarely” reimburse customers duped by scammers, according to a recent Senate investigation.
If this is still considered the global standard in banking, I shudder to imagine what corrupt banking might look like. Americans are not just entering a new financial paradigm—they are grappling with a banking foundation so eroded by incompetence, selective exclusion, and unchecked fraud that its functionality is increasingly unreliable. The very banking foundation underpinning the investment ecosystem appears to be crumbling before our eyes.
But fear not! There is a way forward.
While American investment professionals remain shackled to a collapsing financial system—burdened by diminishing returns, outdated strategies, and a narrow obsession with domestic paper wealth—those with the vision to look beyond U.S. borders can seize a world of opportunity. The global investment landscape offers untapped potential for those bold enough to challenge conventional wisdom, think globally, and embrace a more strategic and diversified approach.
And yes, American's from the West Coast to the East Coast are making a conscious decision to vote with their feet, and leave for good:
Gold’s 28% return isn’t just a statistic—it’s a wake-up call, a glaring signal that the rules of investing have changed. While traditional portfolios falter under the weight of uncertainty, gold and other tangible assets are proving their worth, delivering robust returns and offering a haven for wealth preservation.
The world is evolving, and so should your investment strategy. Offshore investing provides a pathway to diversification and resilience, allowing you to tap into global markets, currencies, and tangible assets that offer greater stability and growth potential. It’s time to think differently, invest globally, and embrace timeless assets like gold.
Disclaimer: This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always do your own research and consult a professional before making decisions.