Friday, December 3, 2010

The Confiscation Con

If you've spent enough time in the gold community, you might be under the impression that the most imminent threat to the average American isn't terrorism or unemployment, but rather gold confiscation. Starting with the fact that FDR confiscated gold during the last Great Depression, and continuing to the quite accurate forecast that we are headed into an even Greater Depression, unscrupulous coin dealers have been pushing investors to buy expensive "numismatic" or "collectible" coins that they claim would be protected from government seizure. The only problems are that the original motive for confiscation no longer applies and the "protection" offered by major coin dealers wouldn't actually help you keep your gold.
In 1933, President Roosevelt issued Executive Order 6102, prohibiting the private holding of gold and requiring US citizens to turn over their gold bullion or face a $10,000 fine ($167,700 in today's dollars) or 10 years imprisonment.
For private citizens, the order listed the following exemption:
Gold coin and gold certificates in an amount not exceeding in the aggregate $100[about 5 troy ounces at that time]belonging to any one person; and gold coins having a recognized special value to collectors of rare and unusual coins.
Seizing on this "rare and unusual" language, many coin dealers try to convince unsuspecting customers that regular bullion coins are not safe, and that it is worthwhile to pay extra for "numismatic" or "collectible" coins that would be exempt from a Roosevelt-style confiscation.
CALL THE MYTHBUSTERS The reality is that almost all coins sold as "numismatic" or "collectible" by our competitors are really quite ordinary coins sold at high mark-ups to make these dealers extra profits. If we were in 1933, these coins would absolutely not fall under the definition of "rare and unusual."
True numismatics are extremely rare or one-of-a-kind coins that collectors purchase for their historical and aesthetic qualities. These coins might retail for $100,000, while only containing $1,400 worth of gold. Most dealers charge a huge premium, so the coin may have to appreciate 30-50% before the buyer can even hope to make a profit. It is a speculative endeavor, and one that is likely to get even riskier as the US descends further into economic depression.
True numismatic coins, like pieces of high art, do well in good times, when people are getting richer and adding to their collections. In bad times, collectors are forced to sell because they need cash. With many collectors in the same boat, prices plunge. Even if the value of the gold in the coin rises, the gold content is only a small fraction of the coin's value. Since premiums are contracting, the value of the coin falls. So, if you are buying gold due to fear of an economic collapse, you should buy bullion, not numismatics.


  1. surprised this was written by peter schiff.
    i like peter
    BUT!!!! BUT BUT!!!!
    buy bullion is great for him a trader.
    for every day citizen fukk off peter
    you arent the only one who knows that we are screwed. i new years ago.
    to the point gold is money ding ding ding
    if they confiscate your gold turn it into another solid asset when they pay value for it.
    for instance buy silver when they pay you for your gold enough said.
    also whats make him think if they confiscate everything his sorry ass wont be forfited to the goverment he would come under great scrutiney.
    all of his assets WOULD BE FOLLOWED AND CONFISCATED TOO!!!!!
    thier is NO sure way to preaserve ones wealth it all depends on the goverment.
    i dont think they will confiscate the gold.
    peter is wrong !!!!! what a dummy.
    they will tax or give you dollars and then go by silver!!!!!!!
    this is the problom today peter made his way to the top now has lost focus of the ball.
    gerald celente seems to be hitting the hoe runs.
    on basic simplistic ideas.
    also one more thing if america made owning gold illegal.
    we will look like the biggest losers.
    and get ready for ww3.
    becausae its a sign of how stupid and ignorant we are and our eneimies will see this.
    as the collapse of the great usa.
    america common sense is a uncommon thing.

  2. also peter knows that if we buy gold coins
    what do they need him for.nothing!
    i have my wealth in my hand,
    peter can hold my balls.

    its said to say but know hes greedy saying you need him a dealer because you cant handle investing yourself.

    i wouldnt give him the market or any bank my cash or gold

    they can lick my azzzzz
    sorry to be so blunt but he must be hurting for cash.or people are loseing confidence in him and buying thier own gold.

    yes if thiers a complete collapse
    gold will be the goverments last problom!!!
    how about the riots going on in the citys!!!
    are they going to say wait.
    mobs of people rioting who has gold?
    peter is driveing looking threw the rear view mirror.
    but thanks peter and many of people dont buy gold coins please please
    because im still buying more.
    for cheap and slver
    you can keep your worthless paper etfs
    when the system faills you wont be able to get your money from overseas or banks.
    good luck with that.

  3. Are you wondering why the market leaked higher in the last hour on Friday? Well it was because someone got an advance copy of the transcript (or advance notice) that in this Sunday's latest attempt at faux transparency on 60 Minutes, the bearded mutant-cum-supreme genocidal(Bernanke) overlord says that more QE is coming. From Reuters: "The euro rose to a session peak against the dollar in late afternoon New York trade on Friday after a report on the CBS website that Federal Reserve Chairman Ben Bernanke did not rule out buying more than $600 billion of bonds in further quantitative easing." It also explains why the euro is back to 1.34, and is right in line with our expectations that the EURUSD is only weak so long as the market realizes that much, much more QE is coming. How much? Oh yes, the $7 dollar jump in gold late in the day may be multiplied 10-20 on Monday. This country is toasted.

  4. thys 337
    great work you also can see the emperor has no clothes.
    and is freezing his azzzz off.
    and will be a ice cub soon....
    got gold coin beechessssss
    or silver hahahahahahhah

  5. 3:11 and 3:21 (Assuming you are the same person here)

    You do realize that he was saying not to pay an extra 30% premium to purchase "numismatic or collectible coins", right? He didn't say to not buy gold. In fact, he said the opposite.

    He didn't say to not buy gold coins, either. Go ahead and buy Golden Eagles or Golden Maple Leafs. He was talking about people like who encourage people to NOT buy Golden Eagles because they may be confiscated. Instead, they try to push old Italian gold coins (or other currency) and charge you 30% more than Golden Eagles for the SAME amount of gold.

    You say you like Peter, then you act like you know more than he does? Come on. Read next time. He is trying to help you.

  6. Anybody who is retarded enough to hand over their gold is also probably stupid enough to give up their guns.

    Some people just aren't going to make it.

    You can lead a horse to water; but damned if you can make him drink.

  7. I wrote an article about 8 years ago speculating about what would happen when, not if America goes bankrupt. I specifically commented on E.O. 6012 and the gold confiscation. Get the sheeple to buy gold, then force a buyback at 30 cents on the dollar and then sell the confiscated gold to creditor nations at spot index value while leaving the good honest peasants with worthless paper in their hands. I often wondered why the Attorney General was given the power to track all gold and silver transactions above a certain dollar amount.

    It's good to know I am still ahead of the curve.

  8. 4:47 the sheeple are buying nothing, so that theory is out the window. Its only a VERY small amount (1% of the public) of the elitist buying Gold and Silver. The rest watch it on TV or sell their stuff to Gen Beck and company.

  9. 4:57 What is that dollar amount ?

    I have made some rather large PM purchases over the last 2 years.

    I have never filled out any forms, was asked for any form of ID or asked for a background check.

    Although one time; I did have a reputable dealer call my bank to verify funds - which I have no problem with.

    The other thing everybody needs to know and understand is - "they" need to absolutly PROVE that you own the gold AND that it's in your posession.

    Like one of the above posters said - you'd have to be a real lame brain to admit it.

    My favorite line? " Oh heck, I gave that to charity a long, long time ago; I think they auctioned it off at a benefit or something"

    Case closed now go get some sleep.

  10. I like an idea I saw a few weeks ago...
    a "voluntary gold confiscation".
    It's not a true confiscation, but the government revalues gold to $100K to repair the financial system, and people voluntarily turn it in, multiplying their wealth.
    I would be very pleased with this, assuming semi-normal prices for everything. I am expecting a revaluation; the amount is anyone's guess. But it IS coming.

  11. It depends upon your individual situation I guess. At this point, I think most here know that gold is wealth and paper is what U use to wipe with.

    Having said that - gold is very hard for the average Joe to use in everyday transactions and remain anonymous as it were.

    So , prepared Americans will own Pm's - lots of them because that's the only internationaly recogniseable store of wealth.

    Then thru trial and error they will learn how to use them wisely

  12. Guys, you should understand one thing. We are up against a criminal cartel and they confiscate anything they like, even your toilet paper if they decide so. At the same time, if we "little ants figure out that we outnuber them by 100 to 1, there goes their way of life" along with the fiat currency they used to enslave us. In this case I'd rather have a few bullions of gold under an oak tree somewhere than their worthless papers.

  13. street beat action needed now. get out a market get to store get food water and weapons. When crime inc comes to door stand dont hestate to shoot crime doers. now when banks start flooding wallstreet politicans call for reform. No way hosay. its about power they want to be heros by promises. Truth is that they cant get money printed enough. We need more money to go to people across nation. We need street action. Charge police lines. Dont let cops get swat ready we need to take em before they get armor on and squares forming. Lets throw stuff at cars belong to rich folk. we need to carry flags to capitol of county. no. how. cant stop us now. as rage against machine puts it. anyone can tel me where to find gold will be preciated.

    - Sam

  14. What's mine is mine, end of story. I give a rats ass what some elected or unelected government nanny has to say about my personal property. They didn't make gold, God did. When he comes for it I will give it to him with love. When dipshits come dressed in black, I'll tell them "NUTS."

  15. If it gets as bad as it was in the 30's the government WILL confiscate your gold. While they may not be able to know everyone who has some gold they can make it illegal to buy or sell so you will have to eat your gold because no one will buy it from you.

  16. 8:13 Amen brother - Amen

    8:22 When guns are also outlawed only outlaws will have guns.
    When gold is outlawed this time; so that no man can buy or sell without the mark ( 666)
    they too will be outlaws.
    This time around; I suspect this country will be rather filled with " outlaws"

  17. 8:22 - ever heard of a "black market"? That is how trading in PM's would transpire. Think back on prohibition - did trade in "unlawful" alcohol cease? No, it prospered. No different.

  18. The dollar amount to trigger a track by the AG at this time is irrelevant

    The fact they can do it means that they will do it.

    When they want to take it, they will demand records and then go through the list and take monies or bullion.

  19. 2"11 Now;
    Think about it for just a minute.

    Your in the next state over on a little business trip; you decide to buy your wife a
    gold necklace.

    Where do you go? Someplace that sells Gold of course! So; you walk into a gold dealers shop; buy a necklace and while your there - a $5 Gold piece strikes your fancy. You Buy it for $275.00 Cash.

    Did you fill out ANY paperwork for this transaction? Did he ask to see ID ? Did he ask for a retina scan?


    NO ONE knows you have it !!!!!!!!!!!!!!

    Until YOU open up yopur GaDamn mouth and TELL someone

    Now; think about it. There's no difference between that transaction and buying a jar of peanut butter

    You gonna balb you have that too ?

  20. QE to infinity! And beyond! yeah talk of QEIII to ramp those markets starting early, and since much collatoral pledged is equities have to ramp it. PM up for now, one day some form of digital exchange system and no more paper nor gold as exchange, a mark, something able to be easily scanned, PM won't save you then

  21. The real world problems that would be encountered in seizing gold are astonomical. Plus, I think people would just simply ignore the government. They have more than wore out their welcome. Plus, as Shift mentioned in the article, there would be pandamoniam if they tried to take gold form individuals. Plus, they have plenty other assets to seize before they ever get to that point. Why do you think they are discussing the private 401k money out there? They are going to get that money, one way or the other. Seizures are being worked on in Europe, as those countries are broke, and are going after private savings to bail out the broke governments. The same people that own those foreign banks own our banks. Folks, if they are doing it there, they will do it here.
    Take physical possession of your Pm's, and make them disappear. What they can't find, they can't take.

  22. 2:50 & 9:14

    Exactly ! Hope everybody reads what you said ( and pays attention )

  23. For those of you who think there will be a black market in gold if the government outlaws it miss an important point. No one "needs" gold so there is no good reason to risk confiscation and jail to buy it. The seller needs to sell it and will be forced to sell it so cheap that it will have ittle value to him. The risk of punishment will seriously limit a black market.

  24. It all depends on how bad things get. It it gets REALLY bad, like complete society breakdown bad, then having gold won't be a lot of help.

    If it just gets turns into a depression, with maybe a few weeks of disruptions, then you would benefit from having gold.

    So, you really have two competing schools of thought. The survivalist guys who say "Only get guns, food and gear" who are banking on a complete collapse, and the GoldBugs who think we won't revert back to the middle ages and that gold will preserve their wealth.

    Only time will tell who is right.

  25. Ah ! But your wrong !

    History Proves beyond a shadow of a doubt that the world over

    Does indeed need Gold

    Look at any value exchange medium within; the last 2 thousand years

    Yell me Sir/Madam

    What is still with us today that was then?

    G O L D

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