First of all, gold in the hands of the American public has never been confiscated, never can be, and never will be.
confiscate
1. To seize (private property) for the public treasury.
2. To seize by or as if by authority. See Synonyms at appropriate.
adj. (knf-skt, kn-fskt)
1. Seized by a government; appropriated.
2. Having lost property through confiscation.
The only gold that has ever been confiscated was gold held by banks for their customers ! Let the buyer beware who owns ETF’s, certificates, bullion accounts, or those holding gold in some storage program; again, beware!
The government has never, and will never, send agents house to house, asking you for your gold, at the threat of gun point. And even if they did, it would be so easy to evade that kind of inquiry, by merely saying, “My gold, I sold that years ago!” Think about it, they don’t even do that to fight the drug war!!
Furthermore, in a nation of gun owners, government agents would likely terminate the program after about the 100th house they searched, due to the people fighting back.
If the government can’t win the war on drugs, against laid-back lazy pot heads, do you think they could win a confiscation war against vigilant, anxious, sober, gun wielding 50-60 year olds, many of whom are decorated veterans of the special forces?
Not even drug sniffing dogs can be trained to sniff out gold, because SILVER AND GOLD DO NOT HAVE ANY ODOR!
But let’s think about this a bit.
Why is confiscation even an issue? Why are gold buyers being trained to ask me about it? I believe it’s because there are numismatic dealers who make more money, and spend more money advertising, make this an issue to be able to sell overpriced gold. Let me explain more clearly, by way of statistics.
The honest gold bullion market is about a $2 billion market in the USA, with margins of about 1%, on average. I estimate that, because gold eagle sales are about 1 million oz/year (record production), and assuming that those represent half of gold purchased in the USA (given my experience as a dealer.)
The real confiscation is inflation. At a 20% inflation rate, that’s worse than the government stealing everything in every 5th home in America, including the home and all the investments. I’ll say it’s worse because that kind of inflation creates economic distortions that create bad investment decisions by the remainder of the population.
But think about this! Government is not likely to confiscate silver and gold, when the government is making and selling silver and gold Eagles coins!
The US government makes 30-40 million silver Eagles per year now, and 1 million gold Eagles. At $20/oz., that’s about $800 million in silver, and $1200 million in gold.
Government is not likely to confiscate silver and gold for the budget when the budget deficit is in the trillions, which is over $1,000,000 million, or a million million. The value of silver and the gold is simply not even remotely close to being enough to help. Silver and gold prices would have to be about 100 to 1000 times higher for confiscation to even begin to help plug the current government deficit, let alone pay the entire budget.
The US annual budget is $3 trillion, and all the gold in all the world is barely $6 trillion. The government would have to confiscate every single gram, ounce, and kilo of gold in the entire world, and it would barely fund the US government for two years, and then the government would be bankrupt all over again! This is why gold cannot help our government, not at today’s low gold prices and not at today’s huge government size.
In the legal sense of today’s insane world, the US government has executive orders ready to be put into effect, that in the case of a national emergency, say they can confiscate your home, your car, your investments, and even your body to be put into government work camps. Do you think that if you had collector coins, that you would be exempt from the work camps when the time comes? The only thing standing in the way of that is the second amendment, and the fact that too many of us own guns, and would never go for it. So, in that sense, even your lawn chair and your bed sheets are confiscable, but not really, since they can try to take them, but won’t get very far!
So, to sum up. If you don’t want the government to steal your wealth, get bullion gold and sleep well at night. www.hardassetsofhouston.com can help.
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21. July 2010 at 5:39 pm
If the government started confiscating gold, wouldn’t the price of Gold start to rise?
21. July 2010 at 5:48 pm
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21. July 2010 at 7:40 pm
If the price rose as the government confiscates it, then there is no reason the value couldn’t rise to match or exceed the current amount of debt the government owes…
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22. September 2010 at 8:15 pm
The big problem with gold & silver, though, is that it’s value now is rated in terms of currency. If the US economy tanks big-time, you can’t eat silver & gold, nor could you necessarily exchange it for food if nobody accepts it.
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23. September 2010 at 12:21 am
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3. September 2011 at 11:07 pm
I appreciate your views. If the government ordered us to poke out our left eyeball, is that when we should start resisting? No, well before that. http://www.silverstealers.net features the history of silver repression by the British and United States governments and the solitary organization back of them both.
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