Are We Being Conned About Gold Confiscation?

[ninakat]

Are We Being Conned About Gold Confiscation?
By Doug Hornig, Editor, Casey’s Gold & Resource Report

[cz]

"One final point. In the 1930s, when people were asked to turn in their gold, compliance was quite high. Americans believed their government when told that it was for the greater good. Imagine.

Today, that attitude seems laughably naïve. Those who have gold know that it is an unequaled storehouse of value. That they would meekly part with it at the government’s behest requires a belief that naïveté still rules the land.

Far more likely is that gold owners would resist. And since they also tend to be gun owners, there could be serious confrontations. The government doesn’t want mass resistance to one of its orders, nor an escalation of the domestic violence it will probably get anyway, when unemployment rises to Depression-era levels. It’s simply not worth it."

I agree with that, since back then the $ was "backed by gold", it made 'sense' (cents, haha) in a perverse way to confiscate it and then revalue the dollar vs. gold to $35/oz (yup, instant one-time inflation).  But US gold coins, say the $20 double-eagle, and a $20bill were "in effect" the same thing at the time, a stable conversion rate at "face value" (ie, a "$20" gold coin, vs. a "$20" piece of paper).

Would be hard to do today...  what would they give in return?  A $20 gold eagle is still "face value" $20.  If they made you "turn it in" what do you get, $20 face value?  Or $950 (or whatever the spot price is today)?  *NOBODY* would part with them for $20, they'd be crazy to.  And even then, if you gave them the gold spot value - what then?  They can't "revalue" the dollar vs. gold, because the dollar is no longer tied to the gold value - and if they said they'd give you spot to turn them in by say "Aug 30th", who would do it early?  As soon as they announced it, the spot price would probably skyrocket... why turn it in today for $950 when you could turn it in on 8/30 for $1200?  Or, better yet, drive up to Canada with some hidden in your car (they're small enough to be very easily hidden) next year and trade them in up there for Canadian cash, which would then convert into a devalued dollar at an even higher rate.

Nope, I think "globalization" screwed that idea

And then, how would they confiscate say gold Krugerrands? Chinese gold Pandas? Canadian Maple Leafs?  They aren't official US currency.

[mtlouie]

'Member that crazy song from the 70s?

"A piece of bread would buy a bag of gold...."

I sometimes think that they know gold is going to be completely pointless.

And sometimes I don't think that at all.

[Six Gun Jim]

Look at the "miners" in Zimbabwe, gold dust for bread by the sluice ton and day
by day.

[Chesyre]

i suspect i will find plenty of people on deaths door , croaking out mine mine mine like demented ravens , with shiny gold coins in their emaciated hands.  golden coins will be just a coup de grace away post collapse.

[Hope@ZeroKelvin]

When you get to the bottom of the article, it says"click here for more info".

Ben Casey is a gold bug and you have to take everything he says with a grain of salt.  **insert folksy humor**

Seriously, I think that the idea of a gold confiscation is very unlikely, just as it is for guns.

Government can't even control the debate on health care at this point and you think they are going to poke around in your underwear drawer for some gold coins that Aunt Betsy gave you?

Here's the problem with gold:  You can't eat it, it is too soft to make anything out of and there is only a limited amount of it.  Most of which is in the hands of governments.

It's value is only what people say it is.  It has no intrinsic value, like say, a packet of heirloom tomatoe seeds.  Which if you plant in the ground will give you tomatoes for years.

Saying that, I have some gold as part of balanced portfolio, better than those frog hair factory shares!

What I can't understand about the gold argument is this:  The buyer of gold is going to hand over dollars for a gold bar.  Said dollars are supposed to then crash or become worthless.  The gold seller will then be holding said dollars and not the gold.  How is that a good thing for the seller?

Ooops, forgot about the toilet paper thread on this forum.  The seller will then have an unlimited supply of toilet paper and the buyer will have to use his gold to wipe his butt.

[cz]

http://www.powerswitch.org.uk/portal/index.php?option=com_content&task=view&id=2079&Itemid=2

Excellent read on Argentina, deserves to be posted here again - given that other thread on the Charles Hughes Smith article "The Royal Scam, Of Two Minds blog"

( http://www.doomers.us/forum2/index.php/topic,50248.0.html )

GOLD:

Someone hit me in the head please because I messed up about the gold issue.

Everyone wants to buy gold! “I buy gold. Pay cash” signs are everywhere, even on TV! I can’t believe I’m that silly!

I just didn’t relate it to what I read here because they deal with junk gold, like jewelry, either stolen or sold because they needed the money, not the gold coins that you guys talk about. No one pays for the true value of the stuff, so big WARNING! Sign on people that are buying gold coins.

Since it is impossible to determine the true mineral percentage of gold, small shops and dealers will pay for it as regular jewelry gold.

What I would do if I were you: Besides gold coins, buy a lot of small gold rings and other jewelry. They should be less expensive than gold coins, and if the SHTF bad, you’ll not be losing money, selling premium quality gold coins for the price of junk gold. If I could travel back in time, I’d buy a small bag worth of gold rings.

Small time thieves will snatch gold chains right out of your neck and sell them at these small dealers found everywhere. This is VERY common at train stations, subways and other crowded areas.

So, my advice, if you are preparing for a small economical crisis, gold coins make sense. You will keep the value of the stuff and be able to sell it for its actual cost to gold dealers or maybe other survivalists that know the true value of the item.

In my case, gold coins would have been an excellent investment, saving me from loosing money when the local economy crashed. Even though things are bad, I can go to a bank down town and get paid for what a gold coin is truly worth, same goes for pure silver. But where I live, in my local are small time dealers will only pay you the value of junk gold, no matter what kind of gold you have. So, I’d have to say that if TSHTF bad, gold jewelry is a better trade item than gold coins.

[Tinfoilhatmann]

When you get to the bottom of the article, it says"click here for more info".

Ben Casey is a gold bug and you have to take everything he says with a grain of salt.  **insert folksy humor**

Seriously, I think that the idea of a gold confiscation is very unlikely, just as it is for guns.

Government can't even control the debate on health care at this point and you think they are going to poke around in your underwear drawer for some gold coins that Aunt Betsy gave you?

Here's the problem with gold:  You can't eat it, it is too soft to make anything out of and there is only a limited amount of it.  Most of which is in the hands of governments.

It's value is only what people say it is.  It has no intrinsic value, like say, a packet of heirloom tomatoe seeds.  Which if you plant in the ground will give you tomatoes for years.

Saying that, I have some gold as part of balanced portfolio, better than those frog hair factory shares!

What I can't understand about the gold argument is this:  The buyer of gold is going to hand over dollars for a gold bar.  Said dollars are supposed to then crash or become worthless.  The gold seller will then be holding said dollars and not the gold.  How is that a good thing for the seller?

Ooops, forgot about the toilet paper thread on this forum.  The seller will then have an unlimited supply of toilet paper and the buyer will have to use his gold to wipe his butt.

Gold has been used as currency for thousands and thousands of years. Silver too. That won't change anytime soon, regardless of how bad things get.

[BlindMansBluff]

In a land where they can confiscate your car, or whatever money you have on you because you fit some secret "profile", what makes anyone think they need any "law" to steal your gold? If a cop stops you and you have gold or silver coins in your pocket, it's gone, guaranteed. Any protest on your part will be all the "justification" needed.

[Connovar]

Hope@ZeroKelvin said:

"Saying that, I have some gold as part of balanced portfolio, better than those frog hair factory shares!"

And thats the point. Gold is a useful addition to our preps. It cannot be eaten but it can be traded and history indicates that this has been the way for thousands of years. Where it becomes pointless is when individuals invest heavily in Gold to the detriment of everything else.

Heirloom seeds are by far more precious

[ninakat]

Here's another new article, but I think the first article in this thread makes more sense -- that there isn't enough gold for the gov't to confiscate to its advantage.

Is the Confiscation of Gold by Certain Central Banks Likely?

[notbobdavis]

Gold is already being confiscated.  I'm sure everyone has seen those commercials on TV, "cash for gold."  Different approach from the 30's but same result.  One of the commercials came out and said that .gov is buying the gold that is melted down.  The Feds have simply outsourced the dirty work to the private sector.   

[cz]

^ Yeah, notbob... well, easy solution is to make everyone unemployed - and then they'll be doing "cash for gold" just to survive anyways...  heck, why try to confiscate it when you can just terrorize the economy enough that people will be forced to turn it in just to live anyways?

[notbobdavis]

I feel so bad for the folks they portray in the commercial saying things like: "I got $300 for my junk gold!  That buys a lot of gas money." or "I sent in my junk gold jewelry and got $450!"  I'm thinking, oh you poor bastards.  You just sold probably the only asset you own free and clear for pennies on the dollar.   

[Maya]

I feel so bad for the folks they portray in the commercial saying things like: "I got $300 for my junk gold!  That buys a lot of gas money." or "I sent in my junk gold jewelry and got $450!"  I'm thinking, oh you poor bastards.  You just sold probably the only asset you own free and clear for pennies on the dollar.   

I have seen a steady rise of commercials like this and I echo same sentiments as yours.