Old European Gold Coins
Telemarketers often assert that European bullion gold coins dated before 1933 would be, as telemarketers claim about old U.S. gold coins, legally beyond the reach of the government in another gold call-in.The imported coins most commonly promoted as non-confiscateable include:
- French Twenty Francs
- British Sovereigns
- Swiss Twenty Francs
- Belgium Twenty Francs
- Swedish and Danish 10 Kroners
- Swedish and Danish 20 Kroners
- Dutch 10 Guilders.
The arguments put forth by telemarketers have no merit. If the government again moves against gold, no coins will be safe, except for those that are genuinely numismatic, coins that are truly one of a kind. Tubes of European coins sold at 30% markups over the gold content would be subject to confiscation.
Telemarketers have been very successful at selling old European coins. So successful that our Gold Specials Page nearly always has some for sale. Not at 20% and 30% premiums but at bullion coin prices. After all, the European coins promoted by telemarketers really are bullion coins.
We have them for sale because rarely do telemarketers honor their buy buy back promises. Consequently, we buy a lot of old European coins and put them on our Gold Specials Page.
Can Gold Be Privately Owned
Gold holdings are the quantities of gold held by individuals, private corporations, or public entities as a store of value, an investment vehicle, or perceived as protection against hyperinflation and against financial and/or political upheavals.Gold holdings are the quantities of gold held by individuals, private corporations, or public entities as a store of valuestore of valueA store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.https://en.wikipedia.org wiki Store_of_valueStore of value Wikipedia, an investment vehicle, or perceived as protection against hyperinflation and against financial and/or political upheavals.
Some Unsavory Dealers Spread False Myths
Some less than reputable precious metals dealers, firms, and websites tell customers that during a national crisis, the U.S. government can confiscate gold bullion. However, this isnt actually true. There are no current federal laws or Treasury Department regulations that make clear references to the governments legal authority to do this.
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Case Study #5 British Gold Ban Of 1960’s
Great Britain has long been regarded as the bastion of capitalism and law and order for centuries now, stretching back to even the 1700’s when most other countries were still autocratic monarchies or dictatorships. Yet despite that, it has not been 50 years since the British found themselves desperate enough to attempt to block gold in a last- ditched bid to staunch the bleeding from the value of their pound sterling.
It was due to the fact that they abandoned the gold standard. They knew intuitively that their own citizens would resort to purchasing offshore precious metals and bring them into the country secretly. The government responded decisively by banning all gold ownership to a maximum per person limit of only four coins.
In order to own a greater number of gold coins than this, you were forced to apply to Her Majesty’s Treasury and give a thorough explanation for why you needed to own physically held, tangible gold in the first place. You know how that would go, if and when they ever got back with you. The old well-worn government expression Don’t call us, we’ll call you, comes to mind.
More Likely Than Outright Confiscation
Today, only a tiny fraction of the U.S. population owns gold. Heck, Id bet most Americans have never even seen a gold coin, much less appreciate its value.
This wasnt the case in 1933, when the U.S. was still on a variation of the gold standard. Thats why the government probably wont repeat the 1933 rip-off. Its simply not worth the effort.
If the government wants to confiscate wealth, its far more likely to go for the easy option steadily debasing the currency by printing money. Its a stealthy way to confiscate from savers.
That doesnt mean gold owners are in the clear.
I think the government will try a new scam: taxing windfall profits on gold. This would make it much easier for the government to accomplish something similar to its 1933 heist.
Theres precedence for it, too. In 1980, Congress passed the Crude Oil Windfall Profit Tax Act, which taxed up to 70% of windfall profits of domestic oil producers.
What the heck is a windfall profit anyway?
As far as I can tell, its whatever politicians decide it is. Its completely arbitrary. There are no objective measures to define it.
In short, a windfall profit is simply a profit politicians dont like. The whole concept is a scama word trick to camouflage and sanitize legalized theft.
If the price of gold explodes, I wouldnt be surprised if Congress passes a Fair Share Gold Windfall Profit Tax Act levying a tax of 80%, 90%, or more on gold profits.
The solution is to own gold stocks in a Roth IRA.
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Tier I Asset Brings The Banking System To Gold
Golds elevation from a Tier II asset to a Tier I asset is expected to be implemented on January 1st 2013.
At this point, not only will central banks want to hold gold but so will commercial banks. This brings into the gold market a whole new demand feature, one that could prove a major driving force in the market place. It institutionalizes gold again!
The Rise Of Gold Confiscation In The 1930s
So why did gold become such a valuable commodity to the United States government in the 1930s? Well first of all, it wasnt just a valuable commodity in the United States at the time. Gold was valuable all over the world. It was because of a global recession. That started in 1929, and by 1930, the deflation of commodities and currencies kicked in and led to a full on depression in 1931.
It wasnt until two years later that Franklin Roosevelt became the President of the United States. In 1934 he and his political confidants instituted the Gold Reserve Act. Roosevelt had signed Executive Order 6102 the year before, which officially made it illegal for citizens to own anything other than jewelry and some coins with gold in them. This was a very common strategy instituted by countries all around the world who are struggling to pay off federal thats and needed to support their respective reserve banks.
The Gold Reserve Act essentially forced people to go to the government and sell their gold back to the country for $20.63 an ounce. Just nine months later, the government decided that gold was now worth $35 an ounce, meaning that anyone buying back into gold as an investment was paying a 40% premium to get a commodity they couldve had nine months earlier for much less. It wasnt until 1975 that Americans were allowed to own more than $100 worth of gold again. Thats how governments around the world supplemented federal thats during their respective economic crises.
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Some Very Common Myths About Gold Confiscation
Many people tend to make up myths regarding the confiscation of gold to scare people and make them victims of brutal investment scams.
Telemarketers tend to instill fear in the minds of gold investors by providing them with wrong information. This is done to influence their purchase so that they buy gold items such as gold coins, holdings of gold certificates and gold bullion at unnecessarily high prices and provide the telemarketers with big chunks of profits. However, we want to inform you of some common myths so that you do not become a victim.
Examples Of Gold Confiscation By Governments And What You Can Do To Protect Your Investment
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Last Updated on: 26th September 2017, 03:57 pm
It is ironic that modern governments have a history of making war on gold when times get tough. The facts bear out the cases of five different nations making it their business to confiscate or outright ban private party gold ownership when push comes to shove.
Read on to see the scenarios in which countries ranging from the United States to Great Britain, to Germany to Australia found it necessary to seize these most valuable of assets from their own law-abiding citizens over the past century.
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Storing Gold In Other Countries
Storing gold in other countries is actually a protective measure used by many wealthy people investing in IRAs in America. Its a sound strategy to reduce risk, but a hard-core libertarian worried about a government taking control of gold probably doesnt want to register their investments with the government. As such, different types of accounts might be more suitable. Something not related to retirement or registered with the government. This brings us to our next solution.
A Modern Day Case Study Cyprus Currency Seizure
Only a few short years ago in 2015, the Republic of Cyprus decided to try a modern-day variation on the gold seizure theme by going an easier route through just seizing cold hard cash in bank accounts instead of gold. Oh, they only grabbed amounts exceeding 100,000 euros in a single account , yet that was where the really big score lay.
The country was able to utilize the billions it seized to bail-in their collapsing major banks and whole banking system. Just like that problem was effectively solved, oh and uh sorry Russians if we took your money.
It only takes a single stroke of the pen for a Big Government to strike away any and all rights and laws that safeguard your right to own gold privately. In today’s dangerous geopolitical and economic climate, things are now so hostile that politicians will be easily able to convince the overwhelming majority of the population which actually does not own any physically held gold that their precious metals hoard has to be seized.
It only needs a single state of emergency, which is code-speak for the government is desperate enough that it requires a reason people will accept to make off with your money.
How To Avoid The Confiscation
1) The first step is to have your gold held on your behalf by such a structure. But holding it in an unallocated state is insufficient. SMA holds clients gold in an allocated form having bought it through one of the very reputable members of the London Bullion Market Association, or LBMA.
- SMA clients gold is allocated and held on your behalf.
2) For security and anonymity, SMA gives each client a private codename through which they can check their holdings within the structure on a daily basis.
- SMA website has a page where clients check their holdings on a daily basis, anonymously, via their codename.
3) The physical gold is held in a jurisdiction that will not cooperate with the U.S. or any other countrys imposition of such an order against gold. Switzerland has such a reputation. When UBS was being forced to hand over the names of its 45,000 clients, the Swiss government intervened to prevent that and agreed that only around 4,500 tax evaders names were handed over, leaving 40,500 names undisclosed. The Swiss National Bank has acted in a similar manner with other countries that tried the same breach of Swiss Bank Secrecy Laws. Any attempt by any government to claim citizens legally-bought gold would receive a far more blunt answer from them, Im sure.
- SMA holds clients gold in Zurich, Switzerland.
- VIA MAT, in Zurich is outside the banking system.
- To this end the Gold Bullion Certificates certifying your beneficial ownership of the gold by SMA are non-transferable.
Final Thoughts On Gold Confiscation
The idea of governments confiscating gold is always a possibility. Now that you know the history of it and what you can do about it going forward, take the opportunity to insulate yourself from risk. The most successful investors in the world do just that. They dont invest in anything trying to hit a home run. Rather they invest to avoid losing money and the prophet in the long term based on sound decision-making and outside the box thinking.
The gold you own should be yours and yours alone and with the gold investment options available today and that many exotic locations around the world that are willing to store it for you, theres no reason to expose your hard-earned assets to the long arm of the law or the surveilling eyes of governments.
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Gold Moves To Pivotal Role In Global Monetary System
In the past weve already discussed the overall moves being made by a host of central banks to increase their holdings of gold and how, in the developed world, the percentage of gold in foreign exchange reserves stood at over 70% in the major four developed nations. Heres a closer look
The on-going acquisition of gold by the emerging world and the firm grip on current gold holdings by the worlds banks show just how important a reserve asset gold still is and how it is becoming increasingly important. Bear in mind too that the bulk of this gold was bought by these banks at around an ounce. At the current level of ,670, the increase in value of gold from the 1960s when this gold was bought has been nearly 48- fold, nearly 100% a year. Not bad for an investment?
Laws For Gold Confiscation In The Us
While no laws are currently being implemented to confiscate gold, in the future, if desperate times loom over the head, the government might become compelled to reintroduce gold confiscation laws, and quantities of gold might be required to give to the government to save the economy. Hence, laws will be made and can be changed according to the current condition.
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Can You Keep Gold Bars You Find
If youre not a collector, selling the bar might be your best option for cashing in on your treasure find. Make sure to only work with a reputable dealer who will provide you with the best estimate of its value. If you decide to keep it, get an appraisal of its value that you can use for insurance purposes.
Could My Gold Be Confiscated
Could My Gold Be Confiscated?
A common question that gold investors have is: Could my gold ever be confiscated? While the notion of confiscation-whether it is gold or any other property-may cause a degree of anxiety, one must also consider the facts surrounding such an idea.
When it comes to gold ownership and the idea of confiscation, one must also be aware of what has occurred in the past, and what could potentially occur in the future.
This brief guide will provide a short history of gold confiscation as well as discuss some key points pertaining to the possibility of a similar scenario in the future.
The U.S. Gold Confiscation
Modern day fears of gold confiscation are derived from history. On April 5th, 1933, U.S. President Franklin D. Roosevelt signed executive order 6102. This executive order banned the hoarding of gold bullion, coin or certificates within the continental U.S. The order went a step even further, however, and made gold possession by individuals, corporations, associations and other entities a criminal offense.
It is important to note that there were, however, some exceptions to this order. For example, the order exempted gold that was used in specific areas of industry and for art purposes. Gold coins that were considered rare and had special value to coin collectors could also be exempt.
Why Was Gold Ownership Banned?
Could Such a Scenario Unfold Today?
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The History Of Gold Confiscation
In the 1930s, the U.S. was in the middle of The Great Depression. Widely known as the worst economic downturn in history, it began after the stock market crashed in October 1929, sending Wall Street into a panic and wiping out millions of investors.
As savvy investors know, gold is a great hedge against economic collapse and could help shield you from severe economic downturns. The only thing is the government knows this as well. In 1933, President Roosevelts administration issued an Executive Order calling in gold. This meant Americans were required to turn in their gold and bullion in exchange for $20.67 per troy ounce or face a penalty of $10,000 should they decide to disobey the order. The reasoning behind this? It was believed that the hoarding of gold during the depression was stalling economic growth and worsening the crisis.
The order lasted for over 30 years, ending on December 31, 1974, with Executive Order 11825.
Did Anyone Listen To Eo 6102
In A Monetary History of the United States, economist Milton Friedman made an effort to measure how much gold coins were actually returned in response to Roosevelts executive order.
Prior to the announcement, some $571 million in U.S. gold coins were outstanding. By January 1934, official statistics recorded just $287 million gold coins still in circulation. So presumably $284 million in coins had been brought to the government in compliance with Executive Order 6102. According to Friedman, the monetary authorities attributed the unreturned $287 million portion to loss, destruction, exportation, and numismatic collections.
But using various interpolations, Friedman found that this probably wasnt the case. Most of the $287 million had been retained illegally in private hands. This meant that the Executive Order had a compliance rate of just 50%.
It should be no surprise that compliance was so low. Gold coins are very easy to hide. Sending police out to search each nook and cranny of every house or yard would have been prohibitively expensive. However, there were a few prosecutions for illegal gold hoarding including the arrest of 13 individuals in 1939 for engaging in bootleg gold sales.
Interestingly, Roosevelts prohibitions on gold would continue on the books until they were finally repealed by President Gerald Ford in 1974.