Under current federal law, the federal government can confiscate gold ingots in times of national crisis. As collectibles, rare coins do not fall within the provisions that allow confiscation. No federal law or Treasury Department regulation supports these claims. Some state governments are now legalizing gold and silver as legal tender or as currency, making them the best place for Gold IRA investments.
If gold is recognized as legal tender in some states, confiscation would amount to the government confiscating your money. Needless to say, it doesn't seem very realistic. On April 5, 1933, under the pretext of a national emergency, President Franklin D. Roosevelt issued Executive Order 6102, making it illegal for the U.S.
UU. The government shamelessly stole the wealth of the American people. The government could confiscate gold again if it gets desperate enough. I don't think those fears are unfounded.
The government's dismal financial situation is only getting worse. But would you make a 1933-style capture again? I don't think I will. However, there is another growing threat to your gold. Heck, I bet most Americans haven't even seen a gold coin, let alone appreciate its value.
This was not the case in 1933, when the United States,. I was still using a variation of the gold standard. This is why it is likely that the government will not repeat the 1933 scam. It's just not worth the effort.
That doesn't mean that gold owners are safe. In 1980, Congress passed the Crude Oil Surprise Profit Tax Act, which taxed up to 70% of the “windfall profits” of domestic oil producers. What the hell is a windfall anyway? As far as I can tell, it's whatever the politicians decide it is. There are no objective measures to define it.
In short, a windfall is simply a gain that politicians don't like. The whole concept is a scam, a word trick to camouflage and disinfect legalized theft. If the price of gold skyrocketed, I wouldn't be surprised if Congress passed a windfall gold profit tax bill with fair distribution of gold that would impose a tax of 80%, 90% or more on gold profits. Fortunately, there are some practical steps you can take to protect yourself from this form of politically motivated expropriation.
One way to avoid a windfall tax on gold is to give up your U.S. It's just not realistic for most people. Fortunately, there's a much more practical option. You can do it from your living room.
And you don't have to hand over your passport. The solution is to own gold stocks in a Roth IRA. A Roth IRA is a tax-free zone. You fund it with after-tax savings, and any future capital gains or income derived from investments in your Roth IRA are not taxable.
While you can never be 100% sure what EE is. The government will do so, a future tax hike, even a windfall tax tax, is much less likely to affect investments in a Roth IRA. A Roth IRA is the most practical way to protect yourself from the most likely form of future gold confiscation: a windfall tax. It makes you a difficult target.
However, much remains to be done to ensure that your wealth does not disappear in the coming financial wave. How will you protect your savings in the event of an exchange rate crisis? The rapid rise in the prices of food, housing, drugs and tuition is affecting Americans, many of whom do not understand the real cause of the fall in their living standards. Precious metals and real estate will become the last safe investments for wealth retention, but they are only truly safe if they are located outside an endangered jurisdiction. Gold and silver have served as money for centuries and in many different civilizations.
They have always been inherently international assets. If you have precious metals in your portfolio, there's a good chance you're afraid of hyperinflation and the fall of fiat currencies. There is another risk you should be aware of. Top 10 Benefits of Having an Offshore Bank Account.
Free yourself from the absolute dependence of any country. Increase your quality of life while decreasing your cost of living. Let's stipulate that the horrible shooting in Newtown, Connecticut, is a historic event. Will Jones be forced to pay a red penny to the parents and families of the victims for denying it? Forget the romantic notions of princes and castles, the state is violence in general and we would be better off without it.
Capital controls are imposed to prevent citizens from taking their money out of the country. As an added benefit, you'll receive our popular reading, the International Statement on the Man by Doug Casey. Let's not keep you in suspense. If You're Not Careful, Your Government May Confiscate Your Gold.
Besides, I can probably do it without compensating you. The governments of the United States, Great Britain, Australia, and many more have done so over the past 100 years. So the clear answer to whether the government can confiscate your gold is yes. The real question is how can you avoid it?.
Government gold reserves consider that the gold reserves declared at Fort Knox and elsewhere do not actually exist or are significantly smaller than stated. A new Treasury regulation has been issued that provides for civil penalties for the confiscation of all gold and the imposition of fines equivalent to twice the value of the gold seized. If you've ever been interested in investing in gold, your research has likely revealed cases where the government has confiscated gold. I hereby declare that such gold and silver holds are prohibited and that all such gold and silver coins, ingots or other possessions will be tendered within fourteen days to government agents.
So why is gold hoarding a problem? Well, under the Federal Reserve Act (191), the government needed to back paper money with 40% of its value in gold. .