Why aren’t Gold Bugs worried about Gold confiscation?

Its happened before so why can’t it happen again? Why wouldn’t the government want to take our gold especially if it will be highly valuable in the future?

After doing some research on the matter I found a relatively simple answer. It’s not probable. Not only that but it would end up doing so much more bad than good, that even if the government completely lost it, gold would most probably remain in the hands of those who have advocated it’s importance for so long.

I found a phenomenal article explaining the whole case for a possible gold collection called The Gold Confiscation Hydra.

It’s a rather long article. In its summation and those of others I’ve been reading:

The chances of a confiscation of physical gold is a mere 1% for a few fundamental reasons.

1. Most of the scare originates from coin dealers who specialize in rare coins and numismatics who claim that a confiscation will have no effect on rare collectibles. Why should they settle for a petty 3% profit increase on bullion when they can charge premiums of 25%+ for rare coins.

2. Gold is far less plentiful in regard to assets as it was in 1933. It would possibly cost the government more money and labor to confiscate it then would be made on the metal itself.

3. Few Gold hoarders during the Great Depression would even think of transferring their gold over to the hands of the government. The meager amounts were simply stored under mattresses while the wealthy shipped their gold off to overseas vaults.

4. An annocuncement by the US Government to confiscate gold for the sake of economic stability would wreak havoc on the face of the markets. It would be the equivalent of Bill Gates or Warren Buffett claiming that they are planning on liquidating all their respective shares in their companies.

It would spell utter end and collapse for the US Dollar. The Forex market, Central banks worldwide and countries like China and Japan would throw trillions of US Dollars on the open market probably without buyers in sight. The currency, Bond and Stock Markets in many countries dependent on the dollar would probably collapse overnight. Foreign aid to the US would immediately disappear.

5. Making gold ownership illegal would probably only increase its value, like it did during the ban on alcohol and does now in the narcotics and modern day black-market.

6. Instead of reevaluating the dollar with gold, they can just as well do so without it. $6 Billion worth of gold holds no significant value in a $10 Trillion economy.

7. We no longer have a gold standard, hence there is no real way of evaluating the gold market to the currency market. In 1933 a $10 gold coin gave you $10 of purchasing power. Withdrawals from banks were able to be taken in cash or in gold.

8. If the government was interested in the sole appreciation in gold prices then why wasn’t there a confiscation of the sort in the 1980 when gold ran up to a nominal high of $710 an oz. – and a real price of over $2,100.

Yes the government has been known to do irrational and outrageous things, but to commit financial and empirical suicide, chances are that if they’re going to go after something it won’t be your gold!

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