Commodity Trade Mantra

Posts Tagged ‘Gold Confiscation’

The Next Gold Confiscation and How to Protect Yourself

Many worry the U.S. government might confiscate gold again if it becomes desperate enough. I don’t think those fears are unfounded. If the price of gold explodes, I wouldn’t be surprised if Congress passes a Fair Share Gold Windfall Profit Tax Act levying a tax of 90%, or more on gold profits. Fortunately, there are some practical steps you can take to protect yourself from this.

When Gold Confiscation Is a Personal Choice

The day government really wants your gold, it will simply offer a high price to coax it from you, paying with paper money freshly printed that morning. The offer would be high enough to outbid competing market expectations. Many gold owners would happily sell for overnight paper profits. Others, with no trust in government, would keep their gold, choosing to wait and see.

Indians Urged To Give Up Their "Idle Gold" For The Good Of The Nation

Indians would be allowed to deposit their gold with banks & earn interest, while banks will be free to sell the gold to jewelers, thereby boosting supply. When stripped of its pompous rhetoric, what India is offering is simple: a gold-for-paper exchange, which in a culture where gold has been the definition of money for centuries, would likely be a non-starter from the beginning.

Taking Your Gold for “The Greater Good”

There can be no doubt that the banks cannot deliver on the amount of gold that they have sold their clients on paper. This situation will hit a wall. Would the US government really turn to a 1933-style gold confiscation again? Probably not. But that doesn’t mean the threat to your gold has diminished. Instead there will be a new scam.

What the Next Gold Confiscation Will Look Like

Many have speculated that the US government could once again turn to gold confiscation/nationalization if it became desperate enough. These fears are not unfounded given the abysmal financial situation of the US government that only continues to get worse, coupled with a total lack of political will to cut spending.

Jurisdiction – So You think Your Gold is Safe outside the Country?

When the U.S. decides it is in the national interests to harness gold to enable it to face the day, not because of internal financial matters, but to allow it to exercise a dominant role in international finance, when the dollar’s global reserve currency role is waning, it will exercise the overreach on U.S. citizen’s gold held outside the U.S.

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