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Daily Gold Bullion Update

December 11, 2009 - Could gold bullion confiscation become a reality in our present turbulent financial times? This is a question we at hear often. The answer is not definitive in most reputable experts’ opinions. In fact, investors could spend days reading material that argues that the bullion confiscation could never happen again and many gold specialists insisting that that it’s just a matter of time.

There are two sides of the gold bullion confiscation coin.

Those who insist that gold confiscation could never happen again use the argument that the government has a lot more dollars printed (issued through bonds as well) in the twenty-first century and that by taking their citizens gold there would not be enough metal to stabilize the dollar as was the case in 1933. This is a very good point that is countered by the argument that the government would still need to confiscate to pay its bills and keep gas in the fighter jets should the dollar collapse due to the continued dilution of the green back.

Life holds no guarantees and the gold market holds true to life. If you were in President Franklin Roosevelt’s shoes and stood at the base of the Oval Office as Commander-In-Chief today the scenario could unfold like this. Your chief of staff and financial advisers would walk in with the dollar bill in one hand and gold bullion in the other. They would advise you that because of lack of confidence in your sovereign currency either the dollar or gold bullion must go. The US government issues dollars as loans so of course you would have to remove any threatening currency, which gold has been to all currencies for over 5000 years. Would you take the bullion or let the dollar fail? Remember, you took an oath to protect the country and the United States of America doesn’t surrender to anyone let alone its’ citizens. As President, can you think of any other asset you could take from your citizens to solidify the dollar?

So although no one holds a definitive answer to the question of whether or not the government will recall gold bullion again, one thing is certain. The United States powers that be will do whatever necessary to protect the image of its currency while maintaining our country’s spending power.

As a firm we generally refer this question back to the questioning parties’ reason for owning gold in the first place.

You may not consider confiscation an issue if you are investing in gold for protection from rampant inflation.

If, however, you personally feel that the dollar could collapse then it may be wise to take confiscation into consideration before making your purchase. 

Daily Updates Archive

John Halloran

Senior Staff Writer -

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