Gold stealing by Governments

With increasing 'certainty' a global banking meltdown lies ahead. And with this
certainty,people from all walks of life are pulling their money out of banks and
buying gold bullion and gold mining shares. However, a sharply rising gold price
will not be welcomed by central banks who will 'rightly fear' it's an indicator of
declining confidence in the monetary system. [Shorts currently working overtime]

In the past when people realised what was happening to their money, it had taken
between 6 and 12 months for the penny to drop.

Today there is no gold standard-yet! But if this crisis gets bad enough 'any and all'
options will be on the table, as monetary 'theories' of the past 70 years turn to dust.

So when a gold investor contemplates the options available to govt's to confiscate gold,
one only need look at the past for examples. As political leaders,historically, can and do
whatever the deem necessary at the time.

U.S. Gold confiscation-1933:

Roosevelt signed into law on April 5th/1933 'forbidding the holding of gold,coin,bullion,
and gold certificates within America. So the owners of gold took their yellow metal to a
bank in exchange for U.S. dollars at $20.67 per oz. Why? The U.S was on a gold standard
at the time ,so hoarding gold [money] was seen as a threat to the stability of the country's
financial system. Things were bad then, banks were shut,no jobs and the govt' couldn't pay
its debt.

But-within a few months after Roosevelt 'stole' the country's gold from the people, he jacked
up the price to $35 per oz. So the 'dollars' the ex gold holders received in exchange had just
been devalued by 40%. And violation of this law was a fine of $10,000-ten years jail or both.

Worse-the ban on private ownership of gold in the U.S. the "land of the free" lasted over four
decades,not until 1975 could American's own more than $100 in gold again.

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Australia's Gold Confiscation-1959.

The Australian govt' similarly nationalised gold:

The law,part of the banking act in 1959,allowed gold seizures of private citizens if the governor
determined it was expedient to do so for the "protection"of the currency or of the public credit
of the commonwealth. Translation- they made it legal to "steal" the gold from the people and
exchange it for paper currency.

Philip Lynch treasure at the time said, all gold [except wrought gold and rare coins] has to be
delivered to the reserve bank of Australia within [1] month of its coming into ones possession.

The law also said that you weren't allowed to sell gold, [get this] 'except to the RBA,nor could
you export any gold without the banks permission'. This ban like the U.S. stayed on the books
until 1976 - seventeen years before being 'suspended'. And in 1997 the same RBA sold off half
of Australia's gold and sent the rest over to Mother England. Why? they 'believed' gold would
not play a role in a future financial crisis. The rapid rise of the gold price recently,shows that
it is clearly playing a role,not just a hedge against valueless fiat, but a probable backing for a
new form of gold standard. In which case gold will soar into the stratosphere.


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Britain's Gold Ban:

In 1966 the govt' banned private citizens from owning more than four [4] precious metal coins.
It also blocked imports of gold and coins. The only exemption was to prove you were a collector.
You had to apply for a license and then a lackey from the bank of England would determine if
you were a collector or not . If not your gold was seized. The important point about this gold ban
is that it occurred when GB was not on a gold standard. So here is historical evidence that gold
was confiscated without being part of the monetary system. Gold is not part of the monetary
system today-either!

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It is interesting to note that these gold confiscations had a general theme. they were advanced
societies among the richest on the planet. And yet they all confiscated gold because each govt'
had abused its finances so badly that it nationalised privately held gold from its citizens.

As one skilled observer said.."Confiscation all comes down to this : The government makes the
rules,changes the rules and enforces the rules. Though it lacks the moral right,it can create legal
authority. Though it lacks the constitutional empowerment,it can turn a blind eye to the law of
the land. The constitution did not stop the U.S. govt' from taking peoples gold in 1933."

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Will it happen again? the jury is still out. This time around they will probably tax the shit out
of us and we keep the gold.

Junior Golds:

The 'leverage' that junior gold's have over bullion in a bull market is legendary. Buying Rox at
current levels and holding tight doesn't require great intelligence. When the bull really gathers
pace,a junior only has to have a mere lease alongside a 'successful explorer'to increase its share
price -substantially!

Go well,
Hm