If you’re new to precious metal investing, you would be remiss if you didn’t read this
As with anything, there are myths and misunderstandings that get spread around by unscrupulous telemarketers and dealers about investing in gold.
Many unsuspecting and novice gold investors are too often led astray by a certain myth about gold confiscation, causing them to pay way more for certain rare coins the dealer tells them would be out of reach if the government ever confiscated gold again.
Some gold dealers and marketers claim many old U.S. coins, proof sets and commemorative gold coins are “collectibles” and would not be subject to a future recall. Some even claim that under current Federal law, gold bullion can be confiscated in times of a national emergency…no Federal law or regulation of the U.S. Treasury supports this assertion.
Executive Order 6102 - Issued by Pres. Roosevelt in 1933
It’s true – Pres. Franklin Roosevelt issued an Executive Order in 1933 confiscating many Americans’ gold holdings. However, the order exempted “gold coins having a recognized special value to collectors of rare and unusual coins.” This is what these telemarketers and dealers prey upon by saying certain coins from prior to 1933 would be out of reach in any future confiscation.
Of course, there’s nothing that says the government could not include these kinds of coins in a future confiscation.
Even if it wanted to, it would be much harder since Pres. Gerald Ford rescinded Roosevelt’s order once Congress restored Americans’ right to own gold in 1974. And in 1977, Congress removed the President’s authority to regulate gold transactions except in a time of war.
So if you’re a gold investor and looking to own precious metals from strictly an investment perspective, don’t buy into schemes about gold confiscation. If a dealer is trying to sell you on that, you will likely pay way more for a coin than it’s actually worth.
Remember, rare gold coins sell based on their rarity. Bullion coins and bars that are consistently minted sell based on their metal content.
