What Kind of Gold Cannot Be Confiscated?
Gold buyers are frequently worried about government seizure of private bullion holdings. Although this has yet to happen, governments have in the past confiscated gold – most notably during the Great Depression under Roosevelt with his Executive Order 6102.
People sometimes mistakenly believe that certain kinds of gold cannot be confiscated due to a 1933 Executive Order that exempted “gold coins with special value to collectors of rare and unusual coins”. Unfortunately, this misconception could lead to you paying unnecessarily higher prices when making bullion purchases.
Pre-1933 U.S. gold coins
Pre-1933 gold coins hold an edge over modern bullion products when it comes to government confiscation. Though we cannot predict exactly how a future confiscation might play out, reasonable speculation suggests the government would likely target coins and bars valued by their gold weight as targets of government confiscation. Therefore many people opt for pre-1933 U.S. gold coins rather than modern bullion products when investing their wealth.
Roosevelt’s 1933 confiscation order specifically exempted coins defined as “true numismatic.” A regulation issued in 1954 extended this exception to include coins minted prior to 1933.
Semi-numismatic coins from prior to 1933 offer an ideal solution to those worried about confiscation, being highly liquid assets that collectors around the world want. Furthermore, they remain private and non-reportable making them an excellent alternative to paper financial instruments that may be subject to confiscation in an emergency situation.
Pre-1933 U.S. gold bullion
Gold has been confiscated in some instances in the past due to individuals breaking laws; due to these cases, many investors question if their gold could also be confiscated by government authorities.
In general, confiscating gold bullion would be impossible due to global markets controlling gold’s price. Should they attempt to seize any gold, government would likely seize rare coin collector coins with higher value beyond precious metal content called true numismatics instead; semi-numismatic coins like pre-1933 gold coins offer much easier trading as their price includes both precious metal and numismatic values.
Pre-1933 U.S. gold certificates
Gold investors must keep in mind the risk of confiscation as political leaders have been known to seize assets during times of political upheaval and economic instability. Gold confiscations has historically been used as an antidote for capital flight or bank runs that occur during economic turmoil.
Roosevelt’s 1933 Executive Order required Americans to turn in all bullion gold, but he later added an exemption for “gold coins having recognized special value to collectors of rare coin.” Specifically, these types of rare coins can still be legally bought today at reasonable premiums over bullion prices and therefore have been exempted from confiscation.
Raw Gold Coins may offer an appealing solution to potential confiscation concerns due to their greater availability and lower prices than Investment-Grade pre-1933 U.S. gold coins, plus they don’t need to be reported when sold – providing greater privacy compared with other forms of gold ownership.
Pre-1933 U.S. gold bars
Even if all existing gold were confiscated by the government today, it would only serve to slightly decrease U.S. debt without providing effective economic policy solutions. Furthermore, market forces determine gold’s price, making confiscation an expensive endeavor as it can easily be sold back onto global markets.
Until now, government confiscation of gold from citizens living in advanced economies was limited to coins and bars, leaving jewelry unaffected and gold bullion unnoticed by most oppressive regimes.
Investment-Grade Pre-1933 Gold Coins provide investors with an ideal way to diversify their precious metals portfolio. Available and trading nearer their gold bullion weight than rare-date coins, these pre-1933 coins make an accessible way for diversifying precious metals holdings without fear of confiscation and provide privacy without being reported on Form 1099-B reports. They make for the ideal way to diversify one’s precious metals portfolio.
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