Nope not to me at all. Most legislation were made by our forefathers so not absurd at all. Maybe you should read it as from memory it said nothing about Jail time.
This has never been acted upon in Australia but it was illegal to hold gold in the states a while back.
You know Gold will never become a form of legal tender as in currency backed by gold and central governments have put in place legislation to prevent that from happening. Hence the Banking act of 1959.
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