Merit Financial Gold - Is Gold Confiscation Real?

Merit Financial Gold - Is Gold Confiscation Real

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Those who are aware of the gold confiscation of 1933, popular known as the Executive Order 6102 and its implications are in the constant fear of their gold being confiscated by the government of the country under financially tumultuous times. However, believe yourGold Investment analyst when he says that such confiscation will not take place in today's times and there are very good reasons behind that.

Back then, President Franklin D. Roosevelt had issued a dictum that the citizens of US were to hand in the physical gold bullion and gold certificates held by them to the government in exchange of $20 per Troy Ounce. This was done to relieve the country from the Great Depression that had settled in towards the end of 1920s. People were holding the gold coins in large numbers because gold and all the other precious metals serve as the store of value. Moreover, there were many other economic reasons for the government to call for confiscation of gold and at the same time, many exemptions were also made in the matters of confiscations, like people holding $100 or less were not required to turn in their gold, collectors were allowed to keep their gold etc.

Coming to today's times, gold confiscation is highly unlikely because the government has other economic measures to control financial conditions in the country and only in the most dire circumstances will the confiscation actually take place and even then, it would be virtually impossible to implement, given the logistical constraints the globalization of resources.

Still, many large investment banks and security dealers keep the gold and other bullion owned by them safety vaults in Europe because they are very well aware of the mounting government debts and the utility of gold in discharging that debt. Until now, the government has been able to manage the debt efficaciously through public revenue and deficit revenue, however with the recent turn of events and volatility of the Dollar, gold confiscation may be the best and the only means to settle the debt.

Individuals investing in Gold backed IRA also fear gold confiscation by the government. This is irony at its best because as such gold bullion is considered amongst the most secure form of investment as during the worst financial situations, the gold coins and bars do not lose their entire value or become zero. They act as a great store of value and appreciate in price year after year. However, one government confiscation order and all your future plans for retirement and savings will be destroyed. Therefore, analysts suggest to create a mixed fund for investments into the IRA account and in other cases also.

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