Can Government Consolidate Gold Bars?
Gold investors often question whether or not the government could seize their precious metals. Since we no longer follow a gold standard system, it would likely be very challenging for any authorities to seize bullion today.
However, there are strategies you can employ to protect against potential confiscations – this article will discuss several of them.
Diversify Your Holdings
Diversifying your gold investments across bullion coins, bars, ETFs and collectibles may provide some protection from government confiscation – for instance pre-1933 coins with collectible value may provide some protection.
There have been instances in the past when governments confiscated private property without due process, typically as an emergency measure due to economic or political crisis. Today however, most countries have signed international agreements which recognize and respect free capital movement so it would be nearly impossible for any government to confiscate gold from its citizens.
Many people worry that their governments could confiscate gold, particularly after seeing what has happened in other countries over time. However, experts agree it’s unlikely anything similar will happen anytime soon and there are better methods available than simply hiding your assets under your mattress to safeguard your assets and protect their value.
Don’t Keep It in Your Bank Account
Though confiscation is certainly possible, it should not be seen as likely. First of all, few major countries rely on gold anymore (though some still do). Second, the banking system today is more interconnected than in 1933, making it harder for governments to seize funds or gold.
Thirdly, since Roosevelt’s purge of gold hoarders in 1933, political conditions have evolved considerably. People today tend to feel more secure that their property rights are being safeguarded by laws and courts; finally, gold trades openly worldwide so for any government action to seize assets owned by foreign individuals they would need to reinstate the 1933 executive order which had been repealed four decades earlier.
People concerned about confiscation should purchase gold bullion coins instead of bars as these items are easier to manage and sell on secondary markets. They also tend to offer greater returns during an economic crisis, making them an even better investment strategy.
Don’t Store It in Your Home
Gold distributors frequently allege that confiscating private citizens’ gold is an imminent risk; however, this is simply untrue and the last time this occurred was during 1933 during the period when government officials required that a certain percentage of printed currency must be backed by physical gold reserves.
At this point, confiscating gold bars would serve no useful purpose since governments don’t control its price, and bullion can freely trade on global markets. Furthermore, currency no longer needs backing with gold from the Federal Reserve and any attempt at confiscation would likely create substantial political and social upheaval.
Establishing legal structures such as trusts or corporations can provide additional asset protection by placing some distance between you and your assets. When creating these types of structures, it’s crucial that they are done under the guidance of an experienced professional.
Don’t Store It in Your Vehicle
Though gold confiscation cannot be entirely discounted today compared to 1933, this threat is much less tangible due to U.S. government no longer using bullion as currency and an ever more diversified global gold market that would likely resent any attempts by governments at meddling directly into its market – leading to investor outrage instead of increased gold holdings.
Most countries have signed international agreements protecting their citizens’ right to own and trade precious metals, making it extremely difficult for any government to seize gold from its citizens unless circumstances were truly dire; even then, most would fight back for their freedom to own hard assets such as gold and other forms of tangible capital.