Feeds:
Posts
Comments

Posts Tagged ‘Executive Order 6102’

In response to my article, “Gold confiscation: It depends on what gold, and how much,” someone posted a link to this video, by Mike Maloney of GoldSilver.com.

In it, Maloney makes one false statement, and one misleading one.

1) “They took it and they put it all in one place owned by the government, so it was nationalized.”
False. It was given to the illegal privately owned Federal Reserve banking cartel.

2) He says that people were compensated for the gold that was taken from them, which is true, and I mentioned that in my article. However, it was taken at the figurative point of a gun at $20.67, only for the price to be unilaterally raised half a year later to $35 an ounce. I argue that’s a violation of the 5th amendment protection of “just compensation” for the taking of private property, on two fronts. 1) A 60% unilateral increase in half a year isn’t just and 2) It wasn’t taken for public use, but for use by the illegal privately owned Federal Reserve banking cartel.

Additionally, he claims that the there was no confiscation of gold, saying that confiscate means to take without compensation.

From Merriam-Webster’s Online dictionary, confiscation is defined with the entry confiscate, as:

1. to seize as forfeited to the public treasury
2. to seize or as if by authority

Definition 1 doesn’t apply in this case, since the gold had to be turned over the illegal privately owned Federal Reserve banking cartel, and not the public treasury.

Definition 2 applies, and mentions nothing about it being seized without compensation. Indeed, the gold was seized, by the figurative barrel of a gun, backed by criminal penalties, as outlined in FDR’s Executive Order 6102.

Read Full Post »

There is growing talk about another confiscation of gold by the U.S. government as gold prices continue to set new all-time highs since 2008. I’ve heard at least three shows this week raise that possibility.

On May 22, 2010, Al Korelin, host of the Korelin Economics Report, had Louis James of the Casey Research Organization on in the last segment of the first hour.

Al Korelin: “One of them is the question of government confiscation, which is something I haven’t thought about, but more and more of my guests are bringing it up. I think that’s an interesting consideration. It has happened before.

Louis James: “It is something that has been done before, and not just by banana republics. The United States government confiscated privately held gold, during the Great Depression era, and yes, that could happen again. Our feeling has long been that that could happen, but the point at which that would happen, the point at which the government would even be willing to talk about gold being an issue, we would already see huge increases in the price of gold. It would become a public problem before the government were to take action. So there would: a) be warning and b) already huge increases for holders of gold and gold in dollar terms.

I agree with James that there would be warning, and a substantial increase over the current price of gold of around $1200 USD an ounce before the U.S. government is likely to confiscate gold again.

It is important to remember that if gold is confiscated again in a similar way to the 1933 precedent, there would be certain exceptions. At the time, they included:

“Gold coins having a recognized special value to collectors of rare and unusual coins,” and “gold coin and gold certificates in an amount not exceeding in the aggregate of $100 belonging to any one person.”

Gold then was worth $20.67 an ounce before the confiscation, and $35 an ounce from then until August 1971, which was equal to 2.8 to 4.8 ounces of gold during that time.

If a future gold confiscation is similar to the 1933 confiscation, it is likely that individuals will be able to keep a similar amount of non-collector gold. The way to keep all your gold in such a scenario would be to buy numismatic gold. That is, gold with a significant premium value over its metal content.

To really be on the safe side, you should consider diversifying into silver, and especially platinum and palladium. Find out why platinum is the overlooked investment metal and currency, and how palladium was the best performing precious metal currency of 2009.

Read Full Post »