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?

Confiscation of gold is a footnote of history that concerns some Americans. It’s happened before, could it happen again? No one knows for sure. However, when you buy early American gold and silver you position yourself as a collector, and in the past ‘collectors’ have been protected from confiscation.

In his first "official" act in office, President Franklin Delano Roosevelt declared a banking "holiday" and issued the order to confiscate gold:

"Executive order: By virtue of the authority vested in me by Section 5(B) of the Act of Oct. 6, 1917, as amended by section 2 of the Act of March 9, 1933, in which Congress declared that a serious emergency exists, I as President, do declare that the national emergency still exists; that the continued private hoarding of gold by subjects of the Untied Sates poses a grave threat to the peace, equal justice, and well-being of the United States; and that appropriate measures must be taken immediately to protect the interests of our people.

Therefore, pursuant to the above authority, I hereby proclaim that such gold and silver holdings are prohibited, and that all such coin, bullion or other possessions of gold and silver be tendered within fourteen days to agents of the Government of the United States for compensation at the official price, in the legal tender of the Government. All safe deposit boxes in banks or financial institutions have been sealed, pending action in the due course of the law. All sales, or purchases, or movements of such gold, within the borders of the United Sates and its territories, and all foreign exchange transactions or movements of such metals across the border are hereby prohibited.

Your possession of these proscribed metals and/or your maintenance of a safe deposit box to store them is known to the government from bank and insurance records. Therefore, be advised that your vault box must remain sealed, and may only be opened in the presence of an agent of the Internal Revenue Service.

By lawful Order given this day, the President of the United States"

Why did this happen?

Why was gold confiscated in 1933? There are several viewpoints, but the one we feel is most accurate is that President Roosevelt had to stop the exodus of money from the American banking system. If the American people were prohibited from owning gold and wanted to earn interest, they would be forced back into the American banking system. i.e. fiat currency. President Roosevelt was convinced that the country needed to confiscate the gold so the Federal Reserve System could print additional currency (which eventually would become fiat money) to stimulate a devastated economy. It is also very important to note that President Roosevelt closed 9000 operating gold mines in the United States and put approximately 300,000 miners out of work to control the production and the price of gold. This move caused an 80% drop in new gold supplies worldwide.

The United States uses a fractional reserve banking system to operate its monetary network. This system enables the banks, today, to loan 10 times the amount of money held on deposit. For example, if you deposited $10,000 with your local bank, it has the ability to loan $100,000 against your deposit. If a bank's depositors withdraw their monies to purchase gold, silver, rare coins, real estate or foreign currencies, the bank's money supply contracts. Washington (the President) and the Federal Reserve System must protect the banks. Therefore a reenactment of the 1933 confiscating of gold will force the American people back to the banks, i.e. fiat money. This happened in 1933 and can happen today!

Larry Burkett (The Coming economic Earthquake):

Save"At first the amount of fiat money issued probably will be just enough to cover the deficits that cannot be funded through increased taxes and new loans. But, as the need grows, so will the printing of the money."

"Once the international business community loses confidence in the dollar, the European Community may well step in with the Eurodollar to stabilize the world's exchange system. Simply put, the dollar will no longer be the world's trading currency, the Eurodollar will be."

James Davidson (The Great Reckoning) predicts a wave of exchange controls.

Plan"The U.S. Government's credibility will fall sharply as the recession bites into revenues, and the deficit rises. Caught in a cash crunch, dependent upon foreign credit, the authorities will have little room to maneuver when the music stops. A slowdown, much less a retreat of foreign capital, would bring pressures for exchange controls and currency holdings restrictions. These would intensify as the U.S. dollar is replaced by the yen and the German mark (or ECU) as the world's reserve currency."

The Great Reckoning warns us that:

"Confiscatory taxes, soak-the-rich policies, and other unhappy developments cannot be ruled out. Bank accounts could be frozen as has been the case in Latin America and elsewhere. Political authorities may decide to unilaterally alter the terms of repayment of some Treasury securities, lowering coupon yields directly or through taxation, or converting short-term obligations into long-term or even perpetual obligations. Privately owned gold held by Americans within U.S. borders could be confiscated again as it was in 1933."