This morning began with an unwelcome visit from apartment management, looking to evict my allegedly “squatting” dog, Stevie Ray. When thinking about what to write about this week, I couldn’t help but draw a parallel to another illegal bureaucratic seizure in America’s history. While the attempted abduction of Stevie Ray might not have the same impact on the American economy as the government seizure of gold in the 1930s, it has inspired my desire to discuss it.
When I wrote about Fort Knox, I mentioned Executive Order 6102– the mandate requiring citizens to surrender all gold bullion to the federal government. Individuals were given $20.67 per ounce of gold surrendered. Immediately after confiscating the gold, Roosevelt raised the price of gold to $35 per ounce.
This order was in response to the depression of the American economy following World War 1. According to Roosevelt, “gold hoarding” was delaying economic growth and had to be halted.
Concern over a new government gold seizure lingers
Questions linger on the actual legality of the seizure, with some arguing the government has the legal right to enforce drastic measures in times of national crisis. Others are skeptical of the measures government officials will go to in order to accomplish personal agendas.
The biggest concern about the gold seizure of 1933 is the possibility of its reoccurrence. Extraordinarily high national debt lends itself to the possibility of government intervention. While a nationwide gold confiscation might not take place, some theorize government interference will take place in a more subtle manner. Because the majority of Americans don’t actually own physical gold in 2016, seizure of the precious metal might not be quite the lucrative haul officials would like. More likely is a continued debasement of the value of the dollar by printing, printing, printing.
Another option to profit from the prudence of gold stackers is to tax windfall profits. This would allow the Feds to profit from gold owners’ investments without directly confiscating them and raising the price of gold to resell (1933).
If you’re wondering how you can protect yourself, consider a precious metals IRA. This will offer you some shelter from the money-hungry tax collectors looking to capitalize on your savings.
Don’t fret; investing in gold bullion is still wise. A literal confiscation of gold is unlikely, but preparation for worst case scenarios is always a good idea.
What do you think? Do you think Hillary, Donald, or Gary will attempt a 1933 seizure? Or perhaps a more covert debasement and taxing? What are your thoughts on storing your gold in an IRA versus your super secret treasure chest buried in the yard?
To highlight the beauty and quality of gold and its importance in your investment portfolio, I offer you the 2017 1 oz Gold Year of the Rooster Coin from the Perth Mint. May this coin bring you a little luck in 2017.
-J
