Gold Bullion Investments and Section 9006 of the Patient Protection and Affordable Care Act.
November 19, 2010 – Everybody who has a gold bullion investment needs to take notice of Section 9006 of the Patient Protection and Affordable Care Act. Hidden away in that tangle of financial provisions is a law that will make every one of our gold transactions known to the IRS.
Ever since Nixon gave American citizens the privilege of privately holding gold by repealing the prohibition against it, we have zealously fought to keep the government out of our investment transactions. We had seen what can happen to private wealth when a government is starved for hard assets. Now, as our government is in just such a state, it has given itself the means to monitor movement of even the smallest quantities of privately held gold.
The chain of stimulus measures is bound to involve continued dilution of the dollar. Already major foreign holders of US debt are expressing grave concerns about our flooding the economy with freshly printed currency. Eventually they will be forced to stop all future loans, putting our government in danger of default. With federal gold reserves at a fraction of previous levels it will be hard to resist the vast stores in private hands.
We are not granted the right to possess gold by any law, but the government has legal basis for an executive order of confiscation still on the books. Considering that the official Treasury price of gold is a mere $42, the threat of confiscation – no matter how remote – must be taken seriously.
There will be great temptation to cash in on the rush to buy gold bullion before the law takes effect, but the risk to long term wealth would be too great. Congress must be pressured to repeal Section 9006 so investing in gold bullion can continue providing safe haven for every American citizen.
