What Kind of Gold Cannot Be Confiscated?

What kind of gold cannot be confiscated

Few governments in the developed world have confiscated gold outright; those that have have usually done so through other means. One effective way to counter this threat is through owning bullion-grade coins or bars that track the market price precisely and can easily be tracked.

Modern gold confiscation myths focus on an exception to the 1933 law – an Executive Order exempting “gold coins having recognized special value to collectors of rare and unusual coins”. Unfortunately, this is nothing but false advertising from unscrupulous coin dealers.

Pre-1933 U.S. Coins

Franklin Delano Roosevelt nationalized the gold holdings of American citizens during the Great Depression by ordering that they turn in their gold coins and bullion to exchange for paper money from his administration. Many did comply, with their old gold being turned into bullion coins to support war efforts as well as strengthen new Federal Reserve Bank.

This incident has left investors questioning whether rare coins would be exempt from confiscation in future confiscations efforts. Unfortunately, most speculations on this subject rely on misinterpreting FDR’s 1933 Executive Order which specifically exempted those coins with special value to collectors of rare and unusual coins from confiscation.

In 1954, this clause was amended to cover U.S. coins minted prior to 1933 – making common date pre-1933 gold coins like those offered at SD Bullion an excellent option for precious metal investors. These gold coins are valued for both their historical significance and precious metal content; their price points fall somewhere between modern bullion and their premium numismatic counterparts.

Pre-1933 U.S. Bullion

Prior to 1933, the United States mint produced gold coins as currency – rare and valuable investments that still circulate today.

Investors concerned with confiscation are looking for ways to safeguard their investments from being confiscated, and some dealers advise their clients to purchase rare coin collector pieces as a hedge against confiscation in the future. But true confiscation hedging means more than collecting rare coins;

Roosevelt’s 1933 executive order exempted gold coins with “recognized special value to collectors of rare and unusual coins” – meaning coins with an overt numismatic premium above their bullion content – from confiscation. Today, such rare numismatic items trade on separate markets than mainstream bullion markets, so investing in rare coin collector pieces without guidance can be risky without an expert who has an in-depth knowledge of both markets and coins. A knowledgeable coin dealer can ensure you avoid confiscations by purchasing only Pre-1933 gold coins that have been certified, authenticated, sonically sealed within tamper-proof acrylic holders to prevent confiscations by authorities.

Pre-1933 U.S. Paper Money

Unscrupulous dealers frequently perpetuate this misconception to lure gold bullion buyers with rare coins that they claim are confiscation-proof. This idea stems from Roosevelt’s executive order which states that coins with “recognized special value among collectors of rare and unusual coins” would be exempt from confiscation; however, this order does not define what qualifies as “rare”, although many use this term interchangeably for high priced.

Realistically, there’s no such thing as confiscation-proof gold; if the government declares owning it illegal, you will either face financial penalties and possibly jail time – though some measures can help lower this risk: one such step is keeping it outside banking system storage with a trusted bullion dealer who will advocate on your behalf in case any of their power overreaches reach out for confiscation of it by your government.

Post-1933 U.S. Bullion

The 1933 gold seizure raised questions regarding whether specific types of gold coins could be confiscated; since then telemarketers have perpetuated it further for their own gain. At the height of the Great Depression, President Roosevelt issued Executive Order 6102 mandating citizens turn over all gold; however he specifically exempted coins having “recognized special value to collectors of rare and unusual coins”.

From 1933 until 1975 it was illegal for U.S. citizens to own bullion gold; however they could own pre-1933 coins with precious metal and numismatic value that generally traded at premiums above their gold content.

Governments tend to leave collectible coins alone while seizing instruments like stocks and bonds that can easily be devalued through devaluation. So if you own pre-1933 coins, rest easy knowing they won’t ever be confiscated by future governments.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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