Gold confiscation by the government

StarlingStarling Posts: 3 Tin ✭
Like in the 30's what would happen to goldmoney accounts if the government(s) start a process to confiscate Gold?


  • StarlingStarling Posts: 3 Tin ✭
    Goldmoney should come up with a plan B.
    Maybe convert Gold into Platinum?
    Any other ideas?
  • GoldmattersGoldmatters Posts: 4,054 Admin
    One technique some users implement is to distribute their holdings across multiple jurisdictions. The vaults are located all over the world, this provides some comfort to those who are concerned about government confiscation. Note the vault in Zurich, where there is no history of confiscation
  • GMONEY1GMONEY1 Posts: 426 Silver ✭✭✭✭
    @Starling if one is worried about confiscation, in addition to holding gold in vaults in multiple jurisdictions as mentioned above, one can also diversify a bit within the PM space by holding silver, platinum, etc in a wealth holding account.
  • GoldmattersGoldmatters Posts: 4,054 Admin
    @GMONEY1 good point!

    It is pretty unlucky that multiple jurisdictions will confiscate all those different metals.

    Diversification can help if confiscation is a concern
  • tomartotomarto Posts: 112 Copper ✭✭
    Confiscation???? only happens if it is known you have silence is golden!!!
    but wearable gold gets away with it ,,eg.
    Coin Bezel Frame Mount Pendant [look it up on amazon]
  • J_GaltJ_Galt Posts: 7 Tin ✭
    There's no need to confiscate if, one day, world government just outlaws precious metals as legal tender and switches over to some new fangled world peperless currency. And that's the biggest threat to gold, silver and any other precious metal.
  • soeborgsoeborg Posts: 29 Tin ✭
    edited April 2017
    @J_Galt I bought gold because it has nothing to do with government, as long as the government have a currency and tries to make people use it, there is a place for goldmoney. They will not outlaw it, its not communist china, and if they do we will find ways to avoid it.
  • AnacapAnacap Posts: 91 Copper ✭✭
    Switzerland, Hong Kong and Singapore are the best geopolitical locations to minimize that confiscation risk as they have the most civiliced social frameworks of the world. Gold confiscation risks come from the very own local government, and those occupy the least places in comparision with the rest of socialdemocracies on huge debts and big promises of welfare.
    soeborg said:

    its not communist china

    Well, it's the evolution of communism as welfare states / social democracies are still collectivists, private sectors are allowed just to farm citiziens. as it happens to be more eficient.

    Nothing really stops any of most western governments to steal gold once the incentives kicks in. That's their bussiness.

    Diversification to reach safety isn't better than knowing where it's safer.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    edited April 2017
    @Anacap said

    "Nothing really stops any of most western governments to steal gold once the incentives kicks in. That's their bussiness."

    Not limited to Western governments.

    Taxes, fees, inflation have been the tools of government from the time of the invention of money itself.

    @Starling the 1933 US gold confiscation was a special case - unlikely to happen again (IMO) because the US currency is no longer backed by gold as it was in 1933


    "The main rationale behind the order was actually to remove the constraint on the Federal Reserve which prevented it from increasing the money supply during the depression; the Federal Reserve Act (1913) required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit (in the form of Federal Reserve demand notes) that could be backed by the gold in its possession (see Great Depression). If gold could not be legally owned, then it could not be legally redeemed. If it could not be legally redeemed, then it could not constrain the central bank.[3]"

    No such constraints exist today.
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