This article is from previous articles featured in the Gold Forecaster weekly issues. [Subscribe: www.GoldForecaster.com ]
The subject of gold’s confiscation has come onto our screens again, but this time, being described as a “Myth” in the future. This thought comes from Canada, a favorite place for U.S. citizens to store their gold in the hopes that it will be outside the reach of the U.S. Federal Reserve.
We respond to the article that described it as a myth, because we are firmly of the opinion that as we move from dollar hegemony to a multi currency, world currencies will find themselves competing against each other [race to the bottom] and increase the prospects for the confiscation of gold held in storage companies and by dealers as well as making such dealing illegal again.
This makes the confiscation of gold and eventually silver, a future reality. It is impossible to give a date when this will happen making now a prudent time to act.
a) Covered in the first part: In this article we will look at the real reasons why the U.S. confiscation took place and its broad objectives as well as the underlying principles behind the confiscation and how they can apply in the future.
b) Covered in the first part: We will show how the confiscation of gold in 1933 was not a money supply issue, nor will it be in the future.
c) Covered in the second part - We will highlight why such underlying principles are beginning to appear now, as this new global monetary system arrives on stage.
d) Covered in the second part - We will explain why gold is becoming an increasingly important reserve asset and will become needed by governments in the future.
e) Covered in the third part - We will explain that holding gold outside ones country will not guard it from your government’s hands unless structured properly to protect you and your gold [and in the future silver] from them.
f) Covered in the third part - We will also explain why important trading nation partners to governments confiscating gold in the future may well act in support of those confiscators.
g) Covered in the fourth part - We will look at the need for governments, through the banking system, to control money flows internally but will need to maintain confidence in their currency, to permit it to be used internationally.
h) Covered in the fourth part - We will look at how gold can be an anchor for currencies and how its price can be raised against their currency to maintain its acceptance.
i) Covered in the fifth part - We will look at how the slow move towards a cashless society being seen in the future must extend to gold and silver. It will include the surreptitious confiscation of gold as we are witnessing attempts to do so in Turkey and India.
i) Part VI - Conclusions
In this seven part series we have examined if the prospective confiscation of gold really is a myth. We have found that it is a reality that is certain to happen.
a) We evidenced why the 1933 confiscation happened in the first place. It was because gold stood as real money that U.S. citizens saw as viable competition to a collapsing banking system. Gold was then removed from citizens, gold dealing made illegal and that gold put behind the dollar and the banking system.
b) We showed why it was not done to alleviate the money supply problems of the day.
c) We have looked at the signs that confiscation will become necessary in the not so distant future. The decay of confidence in currencies has started alongside growing volatility in the currency world. With the growing prospect of political confrontation between east and west, gold will be increasingly sought by individuals, institutions and central banks as a source of stability, wealth preservation and in back-up of currencies.
d) We have shown why the importance of gold is growing as a reserve asset in government’s hands as exemplified by Russia and China’s buying in volume.
e) We then turned to the misconception that storing your gold overseas puts it out of reach of your government. Indeed, with the exception of one storage company [see below] that we know of that is structured to prevent confiscation of your gold, by experienced operators in exchange controls, we will go as far as to say your gold would be safer in your own home than in a storage company in the U.S., U.K. and E.U.
f) We highlighted just how in the past, nations, like Canada, have cooperated with the U.S. and attempted to confiscate gold of U.S. citizens in Canada.
g) We have highlighted that just as in the U.S. confiscation of gold in 1933, nations will need all the gold it can get hold of to put behind their currencies in support of their currency’s credibility, internationally.
h) We described just how gold has been an anchor for currencies and how its price can be raised against their currency and other currencies to maintain it international acceptability.
i) We then demonstrated how moves towards cashless societies will have to extend to the confiscation of gold and later silver.
But most importantly, we have seen how the government in China owns the institutions that gold is owned through and dealt through, including Hong Kong. As the People’s Bank of China stated, “China owns gold through its people.”
We have looked below the surface of the different government moves to put themselves in a position confiscate gold overnight.
- In the U.S. it will simply take an extension of FATCA’s regulations and a repeat of the clauses of the 1933 confiscation of gold to take full control of gold and later silver under its Jurisdiction, which can extend worldwide.
- In the U.K. the Bank of England will simply issue an order to all storage companies and gold dealers to hand over their client’s gold to the B. of E. and make gold dealing illegal from then on.
- The E.U. will do the same and that will encompass gold dealers in Ireland.
The reality is therefore that the confiscation of gold has already taken place, bar the issue of the orders from government. How can you test this now? Simply ask the storage company you use if you can collect it directly from where it is stored now. This will show that control and ownership can be two entirely different things. You may own the gold or silver, but do you control it?
To come - Part VII - The benefits after Confiscation!
Act Now! There is only one structure designed to combat the confiscation of your gold and that is the Ultimate Gold Trust / Stockbridge Management Alliance Ltd. Contact it at:
Bear in mind that gold dealers would also be put out of business as gold dealing would be banned. Only governments would be allowed to own gold and would brook no competition from the private sector!
You need also to protect yourselves as you would then be required to report your gold holdings under a new FATCA regulation to be imposed then. UGT would be in a position to guard you even then!
Contact us NOW!
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This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Julian D. W. Phillips makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Julian D. W. Phillips only and are subject to change without notice. Julian D. W. Phillips assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage which you may incur as a result of the use and existence of the information, provided within this Report.