Different Laws May Apply When Bringing Foreign Currency Into The Us
If you bring in spendable foreign currency that is made of gold or backed by gold, different laws could apply. To quote again from U.S. Customs and Border Protection website:
Please note a FinCEN 105 form must be completed at the time of entry for monetary instruments over $10,000. This includes currency, i.e. gold coins, valued over $10,000. The FINCEN definition of currency: The coin and paper money of the United States or any other country that is designated as legal tender and that circulates and is customarily accepted as a medium of exchange in the country of issuance.
What To Expect Going Forward
- First, any announcement will probably not use the words capital controls. It will be couched positively, for the greater good, and words like patriotic duty will likely feature prominently in mainstream press and government press releases. If you try to transfer assets outside your country, you could be branded as a traitor or an enemy of the state, even among some in your own social circles.
- Controls will likely occur suddenly and with no warning. When did Cyprus implement their bail-in scheme? On a Friday night after banks were closed. By the way, prior to the bail-in, citizens were told the Cypriot banks had government guarantees and were well-regulated. Those assurances were nothing but a cruel joke when lightning-fast confiscation was enacted.
- Restrictions could last a long time. While many capital controls have been lifted in Cyprus, money transfers outside the country still require approval from the Central Bankover a year after the bail-in.
- Theyll probably be retroactive. Actually, remove the word probably. Plenty of laws in response to prior financial crises have been enacted retroactively. Any new fiscal or monetary emergency would provide easy justification to do so again. If capital controls or savings confiscations were instituted later this year, for example, they would likely be retroactive to January 1. For those who have not yet taken action, it could already be too late.
Protecting Gold From The Us Government
There is one way you can protect your gold from the US government in case they decide to confiscate it: Move it to another country.
Of course, you cannot store your gold overseas in just any country. Each country has its own set of laws and regulations regarding gold storage.
Many countries have enforced specific asset protection laws, which enable them to store valuable assets like gold and silver safely. Today, we are going to discuss the 5 countries where you can move your gold to so the US government cannot confiscate it.
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Before And Not After A Dollar Collapseto Shore Up The System
The monetization of gold will dramatically change the way it will be looked at by the powers that be.
It doesnt require a dollar collapse for this to happen it will happen because of falling confidence levels in currencies and the potential danger we might well face in the near future. Just as the confiscation of gold in 1933 was done so as to rectify a major fault in the U.S. monetary system then and to prepare the world for the conflagration of WWII, the return of gold now is for the positive aspects gold can bring to shore up confidence in the current monetary system. At that time, the gold price may well be encouraged to rise to such a high level that confidence in the dollar and other key currencies will be restored. This again will enable the banking system to be used as a means to a further unlimited expansion of credit. Golds role will be to provide a value anchor to currencies from then on.
Search & Seizure Of Gold Rarely Happens
Theres also a lingering myth that the IRS went on the hunt for safe deposit boxes and other possible places where gold in solid form may have been stashed. In reality, there are no clearly documented incidents of widespread gold searches and seizures of this nature.One of the few examples involves a man who, during the height of the Great Depression, tried to withdraw 5,000 ounces of gold from his local bank. Because this was such a big withdrawal, the bank had to report it to the federal government. Agents then went to the bank, although this wasnt standard practice back thenand its not now, either.
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Is Us Currency Still Backed By Gold
Federal Reserve notes are not redeemable in gold, silver, or any other commodity. Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act to read: “The said notes shall be obligations of the United Statesâ¦.They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.” Federal Reserve notes have not been redeemable in silver since the 1960s.
The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.
Gold Confiscation: A Timeline Of Events
History Doesnt Repeat Itself, but It Often Rhymes Mark Twain
When President Franklin D. Roosevelt signed executive order 6102 in 1933, forbidding the hoarding of gold coin, bullion and certificates within the United States. The rationale was to remove the constraint on the Federal Reserve which prevented it from increasing the money supply during the depression. In a way this was like the modern-day QE programs that we use today.
What most people do not know is what preceded this action. The Federal Reserve Act of 1913 required 40% gold backing of all Federal Reserve notes that were issued. By the late 1920s the Fed was in danger of hitting the limit on the number of Federal Reserve Notes it could issue based on our gold reserves.
Congress solved this dilemma by passing the Emergency banking Act of 1933 on March 9th and with very little debate. It retroactively approved the Presidents closing of banks across the country for four days, that he had done earlier. The President had done that without providing any legal justification to do so. This act also gave the secretary of the Treasury the authority to require all individuals and corporations to surrender all of their gold coins, gold bullion or gold certificates if the secretary deemed it necessary to protect the currency system of the United States. Apparently the private ownership of gold was thought to be a threat to our currency system?
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Why Did The Government Confiscate Gold In The Past
In 1933, President Franklin Roosevelt signed Executive Order 6102, requiring the Americans to hand over all their gold coins, bullions, and certificates to the government for a fixed price of $20.67 per troy ounce.
People who violated this order could expect a maximum punishment of $10,000 fine or ten years in prison or both. So, why did the Roosevelt administration do this?
The great depression hit the country hard. So the Federal Reserve wanted to increase the money supply to pay off debt, fight deflation, increase consumer spending, and decrease interest rates, which would essentially combat the depression.
But at the time, the US monetary system was still based on the gold standard, and under the Federal Reserve Act , the US government had to back its money supply .
The Federal Reserve was approaching this limitation. So, they confiscated peoples gold, and within only nine months, the official price of gold rose to $35.
In other words, what the former gold owners had received in exchange, lost 40% of its value. This ban on owning gold lasted more than four decades. Finally, at the end of 1974, President Ford issued another Executive Order and repealed Executive Order 6102.
Throughout the twentieth century, other countries like Australia, Britain, and Italy have adopted similar measures in their financial crisis.
Which Bullion Could Be Exempt From Gold Confiscation
If youre like a lot of the investors weve talked to, you may want to know which bullion products could be exempt from confiscation should the government resort to that again.
While we cant predict the future, we can show you what happened in the past. So you can make an informed decision about your gold investments.
Why did FDR confiscate gold? How did Congress and the Supreme Court react? Which gold products were taken from Americans?
Get answers to these vital questions and more in this video timeline of the governments gold confiscation in 1933. Click here to watch Gold Confiscation: A Timeline of Events
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Some Unsavory Dealers Spread False Myths
Some less than reputable precious metals dealers, firms, and websites tell customers that during a national crisis, the U.S. government can confiscate gold bullion. However, this isnt actually true. There are no current federal laws or Treasury Department regulations that make clear references to the governments legal authority to do this.
How To Protect Gold From Confiscation
While most gold confiscation stories throughout history took place in the 1930s as a precursor to World War II and most of them ended by the 1970s, there is no a lot written in the world that cannot be changed. The fact that we may indeed be on the verge of another recession heading into 2020 means more and more investors will turn to gold as viable solutions for protecting their wealth. While investing in gold during times of crisis is a common theme, you can see looking at history that there is no such thing as a safe bet. However there are some solutions for protecting gold from confiscation. All it takes is a little bit of outside the box thinking.
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Can The Government Seize Your Gold And Silver
One rising concern around the world is whether or not governments will allow gold and silver to continue to compete with paper currencies. Fiat money has been steadily declining in value, while the precious metals markets have been heating up. Theres no way the control freaks in government havent noticed. The question is, what can they really do about it?
From the past, we know that one tactic is to make it illegal for private citizens to own gold and silver. This happened in the U.S. in 1933. While modern writers like to remember this as the time the government confiscated private gold supplies, the reality was that precious metals were nationalized. Its a small but important distinction. No one went door to door seizing precious metals supplies they were voluntarily traded for market value at gold windows and banks. The rules governing this exchange and the rules protecting pre-1933 as exempt collectibles were voided when Nixon closed the gold windows in 1971.
Fast forwarding to the present day, we have looming a looming currency crisis on our hands. To make ends meet, the governments of the world will be resorting to desperate measures. Knowing nationalization happened in the past, could modern governments take things one step further and come seize your gold and silver to make ends meet?
An Issue of Obedience
An Issue of Logistics
An Issue of Image
Gold Confiscation: Can The Us Government Confiscate Your Gold How To Protect Your Stash
Disclosure: Our content does not constitute financial advice. Speak to your financial advisor. We may earn money from companies reviewed. Learn more
Is it possible for the .U.S. government to confiscate your gold? If so, how do you expect to protect your stash in the event that happens? The answer to the first question is yes. The answer to the second question is that you have several options.
Most savvy investors who invest in gold and silver think that they can keep their wealth out of the hands of the government by doing so. They also believe that these commodities are more stable and likely to increase in value in the event of an economic recession or depression. Investing in gold is almost always the default, go to strategy for investors who worry about doomsday scenarios or Armageddon. It doesnt matter if the scenario is a giant stock market crash, global warming, or another World War. Popular belief and the history of gold prices dictates that this is generally a sound strategy. However, having the Government confiscate gold is a real possibility. Its been proven throughout history, particularly in the 1930s.
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How To Invest In Bitcoin
Bitcoin is digital gold. The fastest way for an investor to get their hands on some is to use a credit card and a cryptocurrency exchange like Coinbase. Coinbase and its many direct competitors allow users to purchase Bitcoin and other cryptocurrencies instantly.
That being said, the best way to invest in Bitcoin for the long term is to invest in a Bitcoin IRA. Yes, they exist. There are five top companies that provide investors with Bitcoin IRAs. Many of those providers have backgrounds in dealing with precious metals too. Investing in Bitcoin not only means investing in something that isnt owned or controlled by a single entity, it also means killing two birds with one stone and having the option to make precious metals part of your portfolio alongside your digital assets and other investments you may have.
As always, whether or not youre worried about investing in gold or having to keep it away from governments or unscrupulous criminals, remember that a solid investment strategy planned out using due diligence and critical thinking skills is imperative to building wealth in the long run.
Now you know how to protect your gold and make sure that it stays in your possession for years to come.
Photo by Aaron Burden on Unsplash.
Amine Rahal
Final Thoughts On Gold Confiscation
The idea of governments confiscating gold is always a possibility. Now that you know the history of it and what you can do about it going forward, take the opportunity to insulate yourself from risk. The most successful investors in the world do just that. They dont invest in anything trying to hit a home run. Rather they invest to avoid losing money and the prophet in the long term based on sound decision-making and outside the box thinking.
The gold you own should be yours and yours alone and with the gold investment options available today and that many exotic locations around the world that are willing to store it for you, theres no reason to expose your hard-earned assets to the long arm of the law or the surveilling eyes of governments.
freenever
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Germans Take Gold From Czechoslovakia
Adolph Hitler and his Nazi regime worked with insiders at the Bank of England to transfer nearly 6 million British pounds worth of gold to German banks. Germany then purposely understated the amount of gold the country had in its reserves publicly to get away with the scheme. Believe it or not, it worked.
How To Avoid The Confiscation
1) The first step is to have your gold held on your behalf by such a structure. But holding it in an unallocated state is insufficient. SMA holds clients gold in an allocated form having bought it through one of the very reputable members of the London Bullion Market Association, or LBMA.
- SMA clients gold is allocated and held on your behalf.
2) For security and anonymity, SMA gives each client a private codename through which they can check their holdings within the structure on a daily basis.
- SMA website has a page where clients check their holdings on a daily basis, anonymously, via their codename.
3) The physical gold is held in a jurisdiction that will not cooperate with the U.S. or any other countrys imposition of such an order against gold. Switzerland has such a reputation. When UBS was being forced to hand over the names of its 45,000 clients, the Swiss government intervened to prevent that and agreed that only around 4,500 tax evaders names were handed over, leaving 40,500 names undisclosed. The Swiss National Bank has acted in a similar manner with other countries that tried the same breach of Swiss Bank Secrecy Laws. Any attempt by any government to claim citizens legally-bought gold would receive a far more blunt answer from them, Im sure.
- SMA holds clients gold in Zurich, Switzerland.
- VIA MAT, in Zurich is outside the banking system.
- To this end the Gold Bullion Certificates certifying your beneficial ownership of the gold by SMA are non-transferable.
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Debunking Gold Confiscation Myths
Here is the truth about a few popular gold confiscation myths to help you avoid falling victim to any investment scams.
Myth #1: Rare or Collectible Coins Cannot Be Confiscated
The myth that certain kinds of gold coins cant be confiscated originated in Roosevelts Executive Order. This order exempted gold coins having a recognized special value to collectors of rare and unusual coins. But it did not define special value, collectors, or collectibles. Even so, telemarketers continue to perpetuate the myth that old U.S. gold coins wont be confiscated to make selling expensive coins easier.
Myth #2: Non-Reportable Coins
Many promoters claim that the coins they sell are not subject to reporting. These statements imply that the government requires the reporting of gold transactions, which is not true. The government does not want gold reported, it wants the cash. The only case where someone would have to report the purchase of gold is in a transaction involving more than $10,000.
Myth #3: Old Foreign Gold Coins
Telemarketers also tend to promote European coins. They will usually claim that imported coins like British Sovereigns, Belgium Twenty Francs, and Dutch 10 Guilders cannot be confiscated. Unfortunately, this is also a myth.
If the government wanted to seize gold again, no coins would be safe except for those that are verifiably numismatic, truly exceptional coins.
