Is your gold at risk?
Some people think it is. They believe the US government might one day come and confiscate their gold. After all, hasn’t it happened before?
Well, not exactly.
It is true that President Franklin D. Roosevelt signed an executive order in 1933 that made owning gold illegal and threatened punishment of $10,000 or ten years in prison for hoarding the yellow metal. In effect, EO 6102 nationalized gold. But in practice, this did not lead to gold confiscation. The small amount of gold that was actually turned in to the government was voluntarily surrendered by people as an act of patriotism and the government gave fair market value in exchange. The feds never made any concerted effort to confiscate gold by force and nobody was ever prosecuted for holding onto their gold.
Of course, it is theoretically possible for the government to confiscate gold. It’s also theoretically possible for the government to confiscate cell phones. That doesn’t mean it will.
Even if you view the Roosevelt executive order as a warning sign, it’s important to understand the political and economic dynamics are much different today than they were in 1933. The world was on a gold standard and the economy was in a deep recession. The nationalization of gold was all about controlling the monetary system.
And it worked.
Today, the Federal Reserve has complete authority to expand the money supply and control interest rates. This is done with or without gold reserves. In other words, the government doesn’t need your gold.
Nevertheless, many numismatic coin dealers and precious metals pundits use Roosevelt’s moves in 1933 to instill fear and bolster the sale of what they claim are “confiscation-free” products.
In fact, there are numerous reasons to believe gold confiscation is highly unlikely. We outline them all in our new report, “Confiscation Con: Will the Government Take Away Your Gold?” The report outlines six facts you need to know before you get caught up in government gold confiscation hysteria.