Can the Government Take My Gold?
Fear of government confiscating their precious metals is an understandable worry for investors, often amplified by less-than-reputable dealers or telemarketers.
However, this is an inaccurate perception: it is unlikely that the United States would attempt to enforce a gold confiscation order outside its jurisdiction.
What is gold?
Gold is an element that holds great sentimental value to many people, serving as jewelry, coins and an investment since ancient times. Additionally, it also has industrial and medical applications.
Gold in its pure form is a soft and malleable metal that can be formed into various shapes. As an excellent conductor of electricity and heat, it can also be worked into thin sheets or wires for use in dental tools or electronics applications; additionally, medical implants often opt for gold due to its resistance against corrosion and tarnish.
Gold’s intrinsic value stems from its status in society as jewellery and coins, making it an excellent store of wealth. Due to its low correlation with stocks and other assets, it provides a safe haven in times of market instability or sudden geopolitical shocks; inflation decreases purchasing power; government fiscal/monetary policy shocks can damage wealth protection; it protects wealth against sudden geopolitical shocks as well as protect wealth if paper currency collapses; it even serves as a means of exchange in case paper currency collapses; its ancient history links it directly with gods/royalty of ancient civilizations – an ancient treasure stored safely away.
Why is it valuable?
Gold’s inherent properties make it highly sought-after, from its lustre to density and malleability – not to mention corrosion resistance – making it attractive to early civilizations as an investment asset. Today, it remains popularly used as jewellery and coins and industrial applications have only served to increase its worth further.
President FDR made an attempt at gold confiscation during 1933 when he nationalized private ownership and compensated citizens who owned any gold they may have had, in an effort to support an economy under strain.
Should the government attempt a future confiscation, they are most likely going after domestic holdings rather than foreign assets, as it’s much harder to bypass laws when you store gold outside your jurisdiction.
Though you may be unable to find a secure provider abroad to store your precious metals, even the mere threat of losing banking services is often enough to force companies and foreign governments to comply with confiscation orders by at least reporting their holdings – giving you more time and distance from fighting the confiscation order. Storing gold overseas may also provide some protection under international treaties.
How do I store my gold?
Retail precious metals buyers frequently fear their gold bullion could be confiscated by government during times of financial turmoil, even though this scenario may seem unlikely to many. Yet it should remain an equally real possibility if one becomes disgruntled over government spending and central bank printing money at an alarming rate.
Storing gold at home may be tempting, but there are risks involved that should be carefully considered prior to taking this route. Consider who might know about your investment: bullion shop staff, credit card company or bank depending on how you paid for the safe, neighbors, as well as anyone who may have heard you talking excitedly about it (including social media posts about it) — any or all could represent potential targets for theft.
Storage at home can be expensive; most home insurance policies only cover the contents of an in-home safe, which usually isn’t enough coverage to protect a large quantity of bullion. That is why many gold dealers advise their clients to consider offsite bullion storage facilities that work with trusted bullion brokers and IRA custodians – they tend to offer lower storage costs than home and give investors peace of mind knowing their investments are fully protected should anything happen to their investments.
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