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Possible expropriation if gold prices explode?

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Hazel Brazell posted on Sun, Mar 27 2011 7:13 AM
In this article http://www.bi-me.com/main.php?id=46194&t=1&c=36&cg=4&mset=1041 Marc Faber warned of a possible expropriation if gold price explode..
- could it be possible in your opinion?
- how could be the government supposed to do it?
- has it happened before in recent history?
 

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They won't come for the gold until people start using it to exchange for real goods and services. As long as people keep using whatever the fiat money system of the day is (dollars, SDRs, RFID chips, whatever), there's no reason to seize the gold. If people start using it in exchange, then the powers that be will descend from Olympus and declare it gold and silver a "clear and present danger" as they did Michael Von NotHaus's silver Liberty Dollar coins. Clear and present danger. Good god.

Clayton -

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gocrew replied on Sun, Mar 27 2011 8:19 AM

- of course it's possible.  If the government issues the order and the men with guns obey, then it happens.

- by this do you mean by what Constitutional authority?  None.  The Constitution is largely irrelevant.

- FDR confiscated gold bullion.  Any gold you have that they don't know about will, obviously, only be confiscated if you offer it up.

Every decent man is ashamed of the government he lives under - Mencken

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- but is it likely to happen, in your opinion? and when?

- no, I meant how they're gonna confiscate the average Joe gold.. what if he just keeps his gold or bury it or whatever, waiting for better times?

- only gold bullion - no coins, no silver? not a big problem. What I'm very afraid of is this scenario: gold reaches 10k, 15k $/oz, government force owners to sell it to him for like 250$/oz, then we're in socialism: 95% of us is poor, 5% is in the higher ranks ruling society and living in luxury, like communist Russia - hell on earth.

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Paul replied on Sun, Mar 27 2011 8:03 PM

- no, I meant how they're gonna confiscate the average Joe gold.. what if he just keeps his gold or bury it or whatever, waiting for better times?

Aside from sending him to prison if he gets caught?  Not much they can do.

- only gold bullion - no coins, no silver? not a big problem.

Not silver, but yes coins (coins are bullion), except rare coins.  You were allowed to keep $100 worth of gold.

See the executive order: http://www.the-privateer.com/1933-gold-confiscation.html

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They won't come for the gold until people start using it to exchange for real goods and services. As long as people keep using whatever the fiat money system of the day is (dollars, SDRs, RFID chips, whatever), there's no reason to seize the gold. If people start using it in exchange, then the powers that be will descend from Olympus and declare it gold and silver a "clear and present danger" as they did Michael Von NotHaus's silver Liberty Dollar coins. Clear and present danger. Good god.

Clayton -

http://voluntaryistreader.wordpress.com
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Kakugo replied on Mon, Mar 28 2011 2:01 AM

Gold is now seen with such contempt by the ruling classes that it's not as coveted as it once was. It's just another good/commodity to tax and regulate. Also remember those same classes are living in a parallel universe: they cannot plan in advance and cannot think about a worst case scenario. They've also grown addicted to debt: "debts don't matter". That's why I believe gold would not be expropriated more or less than any other asset: if something similar happens it would come through "forced swaps". They take you assets (be them gold, silver, stocks, future certificates, obligations etc) and give you in return "victory bonds", "freedom bonds", "solidarity bonds", assignat or Continentals. In short you will be forced to own useless government debt and to pay for it through confiscation of hard assets.

That's why I always encourage people who wants to buy gold to get the "physical" stuff. You can hide a coin but you cannot hide something held by a bank. wink

Together we go unsung... together we go down with our people
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http://www.commodityonline.com/news/Austria-restricts-gold-purchase-by-individuals-42329-3-1.html

A newly enacted Gold policy in Austria that restricts the free purchase of gold by individuals may just be the start of a European policy shift that might border on infringing an individual’s financial freedom.

-As per the new Austrian policies, individuals who wish to purchase gold will be restricted to purchase only 15000 Euros worth of gold at a time making gold an officially “restricted” commodity.

I have no words.

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Didn't the U.S. just pass a law that limits gold purchases to ten thousand dollars?

 

The last DHS PSA (see something say something) depicted people exchanging silver coins for paper money or other goods as suspicious activity.

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People were buying government-minted gold coins and using them to rack up points on their frequent flier cards (while losing no money).

Link:

http://creditcardforum.com/rewards/1317-us-mint-credit-card-rewards-buying-dollar-coins.html

Wait, "gold" might just be the color...

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