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 1917 the Trading With The Enemy Act was passed. The Legislation is still in place. Its article 5(b) states:

"That the President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange for the export, hoarding, melting, or earmarking of gold or silver coins or bullion or currency."

With this awesome power the President of the United States may do what he pleases with our money or with gold if he deems our monetary system to be in jeopardy.

Section 5(b) was used by Roosevelt in 1933 to confiscate gold. President Carter used it to freeze Iranian assets during the hostage crisis. Will the President also use it when we take our money out of the banks and rush to buy gold or wire money offshore? Don't bet against it.

Historically, governments have banned the ownership of gold prior to their citizens refusing to use that which they call money. Why should it be different here? It's already happened before. All that is required (because of the Trading With The Enemy Act of 1917) is for the President to issue a decree.

Roosevelt used the authority under the premise of a national emergency. He empowered the treasury to maintain complete control over all transactions in gold and foreign exchange. On April 5, 1933 an executive order was issued demanding COMPLETE SURRENDUER OF GOLD COINS, GOLD BULLION AND GOLD CERTIFICATES still in possession of individuals. The owners had 25 days to turn their gold into a Federal Reserve Bank. FAILURE TO COMPLY WAS PUNISHABLE BY A FINE OF $10,000 OR 10 YEARS IN PRISON OR BOTH. One exemption was authorized which permitted the holding of gold under special license for use in industry, certain professions and RARE AND UNUSUAL COINS OF VALUE TO COLLECTORS.

Citizens who did comply were paid the "official" price of $20.67 an ounce. Of course, after the confiscation the dollar was devalued and the new price of gold was set at $35 an ounce. In other words, if you turned in $20,000 worth of gold you found its new value was $35,000. Expect this to happen again during the next round of confiscation. I believe that the gains to be made in gold will be greater after confiscation (due to the devaluation of the dollar) than the gains made on gold rise prior to confiscation. Be sure and buy your gold in the form that "legally" allows you to own it, even during a confiscation. That's where the real potential lies.

On August 9, 1934, a Presidential proclamation ordered all silver bullion surrendered to the treasury within 90 days and a 50 percent tax was levied on profits from the sale of silver. The sellers were paid all of 50.1 cents per ounce.

What does this mean?

Remember, this legislation is still on our books. Ownership of gold is not a right, it's a privilege. Remember, privileges can be taken away. To recap this section: Provisions were made to permit three classifications that were exempt from gold confiscation. They were dentists, jewelers, and coin collectors. The safest way to own gold still is in the form of a collection. Whether you view gold as an "insurance policy" or a safe haven for your wealth, you will be well served to own it in numismatic form. Not only will this help insulate you from future confiscation, it will also permit maximum potential. in rising gold markets the collectibles almost always outperform bullion. More on this later.

Ron Paul served in the House of Representatives and was a member of the Gold Commission. He was one of 16 people who worked with "gold" issues. He had this to say about gold...

"If it gets bad enough, they'll declare a national economic emergency. They'll take over the banks, all business and industry. They may even try to confiscate our gold. I served on the Gold Commission for eight or nine months while I was in Congress along with fifteen other members. I brought up the subject of confiscation. The power to confiscate gold is still on the books as the law of the land. I urged the Full Commission to recommend Congress repeal the power to confiscate gold in an economic emergency. We pushed it to a vote and I was the only one that voted recommend to Congress that we never again contemplate taking the gold of the American people. The fifteen other members voted it down. The power is still there on the books, and they can do it any time they wish.

Dan Rosenthal, former editor of "Silver & Gold Report" said...

Plan"I keep hoping that confiscation of our gold will never happen again. But, I operate my private life as if it could. I hold my own gold and silver myself. I don't think a bank vault would be a suitable place to keep it. I also think it's risky to buy gold coins in an IRA account, where a bank trustee keeps coins for you."