Results 1 to 16 of 16

Thread: Interesting Article On FDR's Gold Confiscation

  1. #1

    Default Interesting Article On FDR's Gold Confiscation

    In addition to the risks of most other investments -- prices can go down, companies cna go out of business -- gold is subject to one other unique risk that doesn't affect most other investments: Gold can be confiscated, and in fact it has been, particularly by authoritarian governments such as those of the former Soviet Union and Communist China and even the United States.
    Gold has been confiscated in the U.S. four times.

    Most recently, in the wake of massive bank failures and a subsequent run on the banks, on April 5, 1933, President Franklin D. Roosevelt issued the following executive order:


    "I, as President, do declare that the national emergency still exists; that the continued private hoarding of gold and silver by subjects of the United States poses a grave threat to the peace, equal justice and well-being of the United States; and that appropriate measures must be taken immediately to protect the interests of our people."
    "Therefore, pursuant to the above authority, I hereby proclaim that such gold and silver holdings are prohibited, and that all such coin, bullion or other possession of gold and silver be tendered within fourteen (14) days to agents of the Government of the United States for compensation at the official price, in the legal tender of the Government. All safe-deposit boxes in banks or financial institutions have been sealed pending action in the due course of law."

    Although many citizens resisted, thousands lined up in front of Federal Reserve banks to "return" their gold to the government.

    Lessons From Roosevelt's Gold Confiscation

    There are important lessons you can learn from Roosevelt's confiscation of gold.

    Lesson 1: Many forms of gold were exempt from confiscation.

    Roosevelt confiscated only gold bullion - bars of gold and bullion coins. Numismatic coins were exempt, as were gold jewelry and semi-numismatic coins (those with a premium of 15%+ over the price of gold).

    These three forms of gold also were exempt from previous gold confiscations in the U.S. - during the Revolutionary War and Civil War. They are the only forms of gold that are relatively safe to store in your safe deposit box.

    Also exempt from Roosevelt's gold confiscation were gold mines, gold mining stocks, gold nuggets and dust, gold art objects, and gold held by U.S. citizens outside America.

    Lesson 2: Gold soared.

    Despite Roosevelt's gold confiscation, gold bullion and stocks soared during the 1930s. Bullion went up 70%. Homestake Mining shares increased nearly 700%.

    Lesson 3: Don't leave a paper trail of your purchases.

    Under Roosevelt, known owners of large quantities of gold were severely harassed and threatened with imprisonment if they didn't turn their gold in. The names of some were even published in newspapers - with disastrous consequences for their businesses and careers.

    But the government cannot seize what it does not know about.

    There is no required registry for gold purchases and no need for you to reveal what is not required of you. You also can purchase gold overseas and keep it there in a bank vault or foreign safe deposit box.

    The IRS and Offshore Gold Ownership

    There is currently no IRS reporting requirement if you own physical gold, silver and other precious metals so long as it is not held in a financial account such as a foreign savings or checking account.

    The IRS requires U.S. citizens to report all foreign bank accounts.

    However, there is no reporting requirement for gold, silver, cash, etc., held in foreign safe deposit boxes. The easiest way for most Americans to do this is to set up a safe deposit box in Canada, London or Switzerland. It is important to note that if you sell your gold, you must report your profit or loss on your federal income tax form.

    Why bother? Primarily because having assets outside the U.S. gives you an added layer of privacy. In the event that gold is again confiscated, foreign safety deposit boxes may well be exempt, as they were under Roosevelt's confiscation. Further, it will be much more difficult for a third party to confiscate your gold if it is outside the U.S.

    For additional protection, open your foreign safe deposit box in the name of a company or a family trust. Neither has to use your name in the title.

    If your net worth is high and you wish to store gold offshore, the recommended way to do so is to establish a relationship with a Swiss bank. Swiss banks are used to buying gold for the world's billionaires and governments.

    As an added incentive, if you purchase $1 million or more, the Swiss banks will store this gold either in their vaults or with the Swiss Central Bank. Most large banks allow you to borrow up to 80 percent against the value of the gold. Amazingly, because the Swiss view these loans as so secure, your total interest and servicing fees may be as low as 1 percent or less. A wealthy, savvy investor worth $100 million could conceivably invest $5 million in Swiss Gold.

    The bank may allow the investor to borrow $4 million against this deposit. You could arbitrage those moneys in government bonds or high-yield dividend stocks that pay 5 percent or more, netting you 4 percent or more on your "insurance" gold sitting in the Swiss bank. Even better, the gold may appreciate as well, adding even more value.

    But the bottom line is that by keeping gold offshore in a place like Switzerland you will have wealth preserved offshore. In a worst-case scenario here in the U.S. you would be able to travel to Switzerland and cash in some or all of your gold at some point in the future. Isn't that comforting?

    http://moneynews.newsmax.com/money/a.../21/162954.cfm



  2. Remove this section of ads by registering.
  3. #2

    Default

    Quote Originally Posted by Allen72289 View Post
    Lesson 3: Don't leave a paper trail of your purchases.

    Under Roosevelt, known owners of large quantities of gold were severely harassed and threatened with imprisonment if they didn't turn their gold in. The names of some were even published in newspapers - with disastrous consequences for their businesses and careers.

    But the government cannot seize what it does not know about.

    There is no required registry for gold purchases and no need for you to reveal what is not required of you. You also can purchase gold overseas and keep it there in a bank vault or foreign safe deposit box.
    God bless the 5th Amendment.
    "None are more hopelessly enslaved than those who falsely believe that they are free." -Göthe
    "All that is required for evil to prevail is for good men to do nothing." - Edmund Burke
    "Government is a disease masquerading as its own cure." - Robert LeFevre

  4. #3

    Default

    Quote Originally Posted by foofighter20x View Post
    God bless the 5th Amendment.
    Under martial law the constitution may just be suspended and with it the bill of rights, if so, there goes your 5th amedment protection.

  5. #4

    Default

    Quote Originally Posted by Truth Warrior View Post
    Under martial law the constitution may just be suspended and with it the bill of rights, if so, there goes your 5th amedment protection.
    This is when you disappear so the government cannot watch you like cattle in a arena like they did in Katrina.

    Yeah. It sucks, Foo Fighter.

  6. #5

    Default

    Don't forget to remove your implanted bio-chip.

  7. #6

  8. #7

    Default

    Quote Originally Posted by Allen72289 View Post
    Is that sarcasm?"
    Today, yes. Tomorrow, who knows????? Plans are afoot.<IMHO>

  9. #8

    Default

    Never turn in your gold, or your guns, or anything for that matter. We are free people not slaves...never bow to tyrants. In other words...have some balls.
    The original American patriots were those individuals brave enough to resist with force the oppressive power of King George. I accept the definition of patriotism as that effort to resist oppressive state power. The true patriot is motivated by a sense of responsibility, and out of self interest -- for himself, his family, and the future of his country -- to resist government abuse of power. He rejects the notion that patriotism means obedience to the state.

    Congressman Ron Paul 5/22/07

  10. #9

    Default

    Quote Originally Posted by NMCB3 View Post
    Never turn in your gold, or your guns, or anything for that matter. We are free people not slaves...never bow to tyrants. In other words...have some balls.
    I suppose you be forced to turn in guns you have permits for.

    Don't you need papers for machine guns?

    :-/ as far as investments that leave a paper trail I won't invest in them until big government is starved to death.

  11. #10

    Default

    Quote Originally Posted by Allen72289 View Post
    I suppose you be forced to turn in guns you have permits for.
    I guess it would depend on circumstances. The best thing to do is never register your weapons. Registration leads to confiscation.

    Don't you need papers for machine guns?
    Legally yes.

    :-/ as far as investments that leave a paper trail I won't invest in them until big government is starved to death.
    Good move.
    The original American patriots were those individuals brave enough to resist with force the oppressive power of King George. I accept the definition of patriotism as that effort to resist oppressive state power. The true patriot is motivated by a sense of responsibility, and out of self interest -- for himself, his family, and the future of his country -- to resist government abuse of power. He rejects the notion that patriotism means obedience to the state.

    Congressman Ron Paul 5/22/07

  12. #11

    Default

    Yeah, Imagine if everyone just quit investing into stocks etc. that they have to pay taxes on? All they're doing is feeding big government.

  13. #12

    Default

    Quote Originally Posted by NMCB3 View Post
    I guess it would depend on circumstances. The best thing to do is never register your weapons. Registration leads to confiscation.

    Legally yes.
    You're telling me there is a way around this?

    Big jail time if you're caught, right?

  14. #13

    Default

    Many states don't require firearm registration... even if you have a carry permit.

    The trick is purchasing and receiving the firearm without the BATF knowing about it. Private sales are legal and unless the seller documents it with the agency, they don't know about it. Again: this is LEGAL.

    An FFL seller keeps records.
    "pledged is as pledged does" -- delegates, that is.


    Ron Paul is MY President, no matter what the November election tells me.

    I've chosen him as my de jure leader, and as long as he represents the message of freedom, he represents ME

  15. #14

    Default

    Quote Originally Posted by Allen72289 View Post
    Lesson 3: Don't leave a paper trail of your purchases.

    Under Roosevelt, known owners of large quantities of gold were severely harassed and threatened with imprisonment if they didn't turn their gold in. The names of some were even published in newspapers - with disastrous consequences for their businesses and careers.

    But the government cannot seize what it does not know about.

    There is no required registry for gold purchases and no need for you to reveal what is not required of you. You also can purchase gold overseas and keep it there in a bank vault or foreign safe deposit box.

    The IRS and Offshore Gold Ownership

    There is currently no IRS reporting requirement if you own physical gold, silver and other precious metals so long as it is not held in a financial account such as a foreign savings or checking account.

    The IRS requires U.S. citizens to report all foreign bank accounts.

    However, there is no reporting requirement for gold, silver, cash, etc., held in foreign safe deposit boxes. The easiest way for most Americans to do this is to set up a safe deposit box in Canada, London or Switzerland. It is important to note that if you sell your gold, you must report your profit or loss on your federal income tax form.
    Gold brokers/dealers and others are now required to follow "Bank Secrecy Act" anti-money laundering reporting requirements under Title III of the USA PATRIOT Act (thank Sens. Sarbanes and Kerry for that).
    My review of the For Liberty documentary:
    digg.com/d315eji
    (please Digg and post comments on the HuffPost site)

    "This political train-wreck Republicans face can largely be traced to Bush’s philosophical metamorphosis from a traditional, non-interventionist conservative to the neoconservatives’ exemplar of a 'War President', and his positioning of the Republicans as the 'War Party'."

    Nicholas Sanchez on Bush's legacy, September 30, 2007.

  16. #15

    Default

    Quote Originally Posted by Allen72289 View Post
    Lessons From Roosevelt's Gold Confiscation

    Also exempt from Roosevelt's gold confiscation were gold mines, gold mining stocks, gold nuggets and dust, gold art objects, and gold held by U.S. citizens outside America.

    There is no required registry for gold purchases and no need for you to reveal what is not required of you. You also can purchase gold overseas and keep it there in a bank vault or foreign safe deposit box.
    You know what would be wicked FUNNY? You open a safe deposit box in Niagara Falls, Ontario while you're on a trip. You buy gold in Canada and store it in your safe deposit box and return to the USA with only the key. Then CANADA does a gold confiscation, instead of the USA doing one. Wouldn't that be HILARIOUS?

  17. #16

    Default

    Quote Originally Posted by TomAlciere View Post
    You know what would be wicked FUNNY? You open a safe deposit box in Niagara Falls, Ontario while you're on a trip. You buy gold in Canada and store it in your safe deposit box and return to the USA with only the key. Then CANADA does a gold confiscation, instead of the USA doing one. Wouldn't that be HILARIOUS?
    You know what would be even HILARIOUSER than that? You open a safe deposit box in a bank vault a block from the USA border, just inside Canada, and then instead of seizing gold and violating your property rights, they seize your passport and violate your personal rights, and now you cannot visit Canada to open your safe deposit box.

    After 9/11, international and domestic flights were grounded (gold in Europe? Oh well.) and the Canadian border was sealed for all intents and purposes with outrageously long queues.





« Previous Thread | Next Thread »


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •