There will be a currency reset. Govt can easily demand gold be handed in to banks at current price where it is collected for central storage. Price is manipulated down to under $1000 an ounce. New gold based international currency is established. Gold is revalued at $7000 an ounce being price required to back current reserve currency. The bigger plan continues. Discuss.
A variation of this has been done before as you know. Cannot see it happening this time as the rich have most of the gold now. Once the US dollar falls there will be no other place to go other then PM's. In any case new currency will be all digital and global in nature. From Forbes magazine. Governments Still Heavy-Handed 80 Years After FDR's Gold Confiscation 4/05/2013 Adrian Ash Of two men walking down Main Street, one with a gold coin in his pocket and the other carrying a bottle of booze, the first was now breaking the law and the second was an upstanding citizen. Or so went the joke in 1933, no funnier than it is today, with the Cyprus deposit-seizure fiasco neatly marking 80 years since President Franklin D.Roosevelt signed his infamous Executive Order 6102 on April 5, 1933. FDR's gold confiscation meant private owners were obliged to take their coins, bars or gold certificates to a bank, and exchange them for dollars at the prevailing rate of $20.67 per ounce. Over the next year, the president then raised his official gold price to $35 per ounce, effectively cutting 40% off the dollar in a bid to stoke inflation and spur the economy. We hear echoes of this in Japan today. Of course, for FDR, it took WWII to get things moving again, but the national emergency the president invoked in 1933 sounds very familiar here in 2013. The banks were shut, on the verge of collapse. The government, too, after close-fought elections, was struggling to cover its debt repayments. Mass unemployment threatened civil unrest. The radical and shocking solution was to grab private wealth, and use it to try and reboot the system. Could the same thing happen today? The first, disastrous bail-in proposal in Cyprus, followed by the euro zone's first-ever exchange controls, only serve to heighten fears that private wealth can, under certain circumstances, simply be appropriated. Governments change laws from time to time, and yes it's possible that under the right circumstances some governments might try to confiscate their citizens' gold. But it is important to realize that the motivation for confiscating gold which existed for FDR in 1933 has largely disappeared. Back then the U.S. was still on the gold standard (the U.K. had been forced off 18 months earlier). So seizing private gold and then devaluing the currency was in fact a 1930s version of quantitative easing. Saving our banks from their stupidity still means swelling the money supply, and hurting cautious savers by devaluing their wealth. While gold is still hoarded by governments (and increasingly by fast-growing emerging economies), it is only tenuously tied to our currency system as the "foundation" of sovereign reserves. Gold also makes a disappointing asset to grab, especially in the rich but troubled West. Because few people own it compared for instance to real estate (a sitting duck for local government levies and the new talk of "wealth taxes") or readily-captured financial assets such as pension pots (already so enticing to distressed governments in Argentina, Hungary and Portugal). People can also own gold in ways which make it inaccessible to government decree. In our opinion, a good way to own gold is directly (i.e. not through a trust), in allocated physical form, and offshore, in a place with a strong tradition for protecting international investors' property. This makes it a tough target for confiscation by your government, and one that would upset other countries for little reward. BullionVault stores gold in four separate jurisdictions, all of which have a reasonable (if imperfect) tradition of defending private property rights: London, New York, Zurich and Singapore. There are clear potential benefits to diversifying physical property across international jurisdictions.
nobody in the west hold gold, so that won't happen. the currency reset will bring in a cashless monetary system. This way they will be able to tax the crap out of anything, specially gold and silver.
Currency reset may simply mean new physical notes. I don't think that digital currency will necessarily be best for a gov't whose current currency has become greatly devalued. I think most gov't know that there is too much inherent risk with digital currency....especially once we start hearing news stories of how BTC and other similar, seemingly bulletproof crypto currencies were hacked and the corruption of the protocols ensued (I'm projecting that this will happen). Though possible, I'm not sure it's likely that gold will be confiscated because I don't really think that gold will be seen as the basis for which a new economy would be pegged to. While I think it's instructive to look back at history for some patterns, maybe in 80 years, some new commodity or resource will be seen by the then gov't as a better thing to which the currency will be pegged? Maybe some energy resource that the gov't can have a monopoly on will be the thing...I don't know but to me, if we don't look outside the box we are not doing our best to understand our possible future. .
Gold was money back in the 1930s, it is not now. The US govt does not know who owns gold. Gold is going down as a correction in a commodity bull market. As per Jim Rogers, this is normal behavior. Rickards is the one who has been mentioning the $7000 per ounce and he states taxation vs. seizure. Govt theft has been ongoing since the Federal Reserve was formed 100 years ago. Additional theft will come through Much easier to steal money out of the bank accounts and certificates of deposit.
Isn't gold already punitively taxed in the US as a collectible (even ETFs), at double the normal capital gains rate?
in the name of god and saving australia... surrender your gold or we will fine you $$xxxxx then you will see people handed in their jewellery + bullion. (using both fear and deception). all members on silver stackers will have its house, workplace and any records searched. for any trace of bullion. where else would you search, if you were goverment trying to get hold on as much gold as you can.
This undoubtedly is a possibility although in the end unlikely as it would not return much to the Australian Government. In the US this is the real reason for the NSA's massive spying agenda on it's people home and abroad not this nonsense about tracking terrorists, to raise every cent through taxation. No more hiding funds.
28% vs. 20% for ltcg. For a couple of years or so, the ltcg rate was 15%, but that was not the normal rate.
Central Banks and China were apparently buying gold, so even though it may not be seen as money by most people, the people who matter seem to think it is worth having. Banks may not be the smartest cookies, what with the Global Financial Crisis and everything but they seem to have managed to get other people to pay for their mistakes and give themselves bonuses at the same time. If they think owning gold is a good idea it is probably for their own self interest rather than the good of the people. However, the stories of Central Banks and China buying gold might have been put out so that people buy the gold thinking they are being smart but actually falling into the trap... Anyway, there is nothing like the thought of easy money to get the greedy to part with their fiat.
