In this section

Click HereFacts about Gold

Click HereThe Right to Own Gold

Click HereGold and Currency

Click HereThe Crashing Dollar

Click HereGold's Purchasing Power

Click HereObama & the New Depression

Click HereGold Confiscation

Click HereTrading With The Enemy Act of 1917

Click HereThe 15% Rule

Click HereEminent Domain Clause

Click HereOutlook for Gold

Why Gold?

In the summer of 1984 Congress passed a new law that distinguished between bullion and numismatic gold and silver. Please read this carefully as it could also be used in the future as another standard to define what is exempt from confiscation. The law on the books from 1933 stated that gold or silver coins must have a recognized collector value above the basic metal costs at the time of the sell back to qualify as a collectible rather than as bullion This is generally accepted to be 15% or greater than the basic metal cost. Why would they possibly make such a distinction, unless they planned at some future date, to recall bullion?

Frantz Pick feared confiscation and offered advise on the subject. He said...

"I am afraid one day the government will indeed call gold in. Gold bullion will be subject to confiscation. This is one big advantage to numismatic gold, such as Double Eagles. It's an idiosyncrasy of governments that although they may prohibit ownership of gold in any form, they are reluctant to touch collections of numismatic gold coins."

"Today there are some 49 countries which forbid ownership of gold by their citizens, but do allow holding gold coins for numismatic purposes. Even the Soviet Union and Eastern countries legally tolerate the acquisition of numismatic gold coins. For these are the only gold holding that could be kept in your safe deposit box without fear of confiscation."

Why did Roosevelt except gold coins "having recognized a special value to collectors of rare and unusual coins?" His Executive Order did, after all, call for the confiscation of "all gold coins."

What does this mean?

Look at the wording here. Exempted from the surrender requirement were not the "owners" of rare gold coins, nor the "holders" of them, nor persons who "possessed" them, nor even "investors." On the contrary, the order specifically focused on an individual's motives for having rare gold coins, exempting just one classification, "Collectors."

A clear distinction was made between the "collector" and the "investor." A collector's primary interest in rare coins is enjoyment. It's for historical, aesthetic or cultural reasons. An investor's interest in rare coins is financial - to make a profit. Roosevelt clearly intended to exclude only the collector.

Subsequent Treasury legislation added to the original Executive Order an amendment stating "gold coins made prior to 1934 are considered to be of recognized special value to collectors of rare and unusual coins."