At the present time Australian law requiring individuals to surrender their gold to the government has been suspended not rescinded
. What the vast majority of these investors don’t realise is that Part IV of the Banking Act 1959, although suspended in 1976 (but not repealed), gives the Commonwealth the right to confiscate private gold and silver to have it delivered to the Reserve Bank of Australia (RBA). This includes all gold and silver in allocated, unallocated and private storage, any bullion products purchased since 2007 and purchases prior to 2007.
n the foreseen event that something does happen to our financial system, the Australian Government has limited options to rebuild these reserves. They can buy bullion through the market (assuming that’s possible), buy and/or nationalise Australian gold production (which would take time and/or increase Australia’s sovereign risk) or by the Governor General proclaiming Part IV in operation which is as easy for them as putting pen to paper. Enacting Part IV would see all gold stored in allocated and unallocated storage facilities across Australia delivered to the RBA within one month and making it a criminal offence to hide it or try and sell it, and they can keep this in place longer than most people tend to naturally live.
Part IV of the Act is relatively short with only nine Sections (40-48).a summary of Part IV is
Section 40 - the Governor General may, by Proclamation, declare that Part IV shall come into operation or cease being in operation;
Section 41 - a person shall not, except with the consent of the Reserve Bank, take or send any gold out of Australia;
Section 42 - a person who has any gold in the person’s possession or under the person’s control shall deliver the gold to the Reserve Bank within one month unless it’s gold coins (which does not exceed the prescribed amount) or gold/silver possessed in the connection with the person’s profession or trade;
Section 43 - total ownership of all gold and silver delivered vests with the RBA;
Section 44 - the RBA sets the price;
Section 45 - only the RBA can buy and sell gold;
Section 46 and 47 - sets limitations on those using gold as part of their profession or trade;
Section 48 - the RBA may exempt anyone, in writing, to any Section or all of Part IV.
Parallel to the confiscation of gold and silver held in storage, another Act of Parliament exists to identify those who have acquired bullion products. In the event that a purchaser has taken physical delivery and Part IV becomes operational, the delivery (to the RBA) of gold stored under the mattress may be somewhat harder to enforce (or find) so a government may choose to restrict the buying and selling of gold for 100 years or more. Since 2007 there has been an Act in place that allows the authorities to know where to start looking. Interestingly this Act covers “bullion”, not just gold and potentially has much wider ramifications by amending "gold" to "bullion" in Part IV (see AUSTRAC bullion definition below) which they have cleverly removed the term gold so it in fact now includes silver, platinum, palladium authenticated to a specified fineness in the form of bars, ingots, plates, wafers or other similar mass form; or coins.
The Attorney General’s website states that “The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) imposes obligations on businesses that are regulated under the AML/CTF Act. Regulated businesses include those that provide financial, gambling and bullion services.” This will ensure that anyone that is suspected of hiding/selling gold, silver or any other precious metals and stones (see link below) will be considered a financial terrorist and subsequently hunted down and gaoled.
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