Effects of a HYPOTHETICAL ban on the private ownership of gold bullion?
JoesMaName
Posts: 1,067 ✭✭✭
Just a thought experiment….
If a ban similar to the one imposed in 33 were announced, what do you think would happen to the value of collectable gold coins? (Assuming they are still legal to own)
What effect do you think it would have on the valuation of the US greenback vs. foreign currencies?
Lastly how would it effect the price of gold world-wide?
If a ban similar to the one imposed in 33 were announced, what do you think would happen to the value of collectable gold coins? (Assuming they are still legal to own)
What effect do you think it would have on the valuation of the US greenback vs. foreign currencies?
Lastly how would it effect the price of gold world-wide?
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Comments
The government has been pushing gold sales from the US Mint for years and turning a nice profit from it. You're allowed to hold it in your IRA, etc. etc.
After FDR hoodwinked the nation in 1933, the populace simply wouldn't stand for it. Any politico who even entertained the thought would be voted out of office so fast that people would forget how many Democrats got booted after voting against the Second Amendment back in 1994 and that was a shift of Biblical proportions.
It's simply not in the cards. I could see Social Security being dumped before confiscation and we all know that is not going to happen in our lifetimes.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
<< <i>Never going to happen.
The government has been pushing gold sales from the US Mint for years and turning a nice profit from it. You're allowed to hold it in your IRA, etc. etc.
After FDR hoodwinked the nation in 1933, the populace simply wouldn't stand for it. Any politico who even entertained the thought would be voted out of office so fast that people would forget how many Democrats got booted after voting against the Second Amendment back in 1994 and that was a shift of Biblical proportions.
It's simply not in the cards. I could see Social Security being dumped before confiscation and we all know that is not going to happen in our lifetimes. >>
I agree it's not likely - but if things get bad enough and it were billed as a way to prevent the further value erosion of the dollar?
The average person doesn't have much vested in gold and may be willing to confiscate what he doesn't own for the promise respite.
I also agree that collectable gold coins would in any scenario most likely be exempt.
So if this most unlikely event did happen:
Would collectable gold skyrocket?
Would world gold plunge with dropped demand?
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I knew it would happen.
<< <i>What gold coins? I dunno what you're talkin' about. >>
Nor do I! this is all hypothetical!
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What Does the goverment care about gold when it is not the money supply?
<< <i>
<< <i>Never going to happen.
The government has been pushing gold sales from the US Mint for years and turning a nice profit from it. You're allowed to hold it in your IRA, etc. etc.
After FDR hoodwinked the nation in 1933, the populace simply wouldn't stand for it. Any politico who even entertained the thought would be voted out of office so fast that people would forget how many Democrats got booted after voting against the Second Amendment back in 1994 and that was a shift of Biblical proportions.
It's simply not in the cards. I could see Social Security being dumped before confiscation and we all know that is not going to happen in our lifetimes. >>
I agree it's not likely - but if things get bad enough and it were billed as a way to prevent the further value erosion of the dollar?
The average person doesn't have much vested in gold and may be willing to confiscate what he doesn't own for the promise respite.
I also agree that collectable gold coins would in any scenario most likely be exempt.
So if this most unlikely event did happen:
Would collectable gold skyrocket?
Would world gold plunge with dropped demand? >>
I'm not sure how anyone could define collectable today. I sure collect modern bullion coins. The fact that some are graded and slabbed defines it as a collectable right there.
Nah! I think we have a lot more worries coming along than gold confiscation. Besides, there isn't enough privately held gold in the entire US to even keep the lights on for more than a couple of days. I can't see any arguement being acceptable to the general population. Back in '33 the citizens weren't being taxed at a 50% ratio. Yes, I am including all taxes, fees, etc. Truth is that we are all being treated as peons as it is and what we actually pay in taxes is shocking. If the sheeple only added it up and realized how bad it truly is...... I could see a revolution.
That's not going to happen, but neither is the confiscation of gold or guns. Just for fun, I'd say such an event would drive prices upward rapidly as people all over the world are allowed to own gold, even in Communist China. That alone says it isn't going to be even considered here.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
<< <i>The U.S is no longer on the Gold standard and the goverment is showing zero inclination to go back on given that the system again. With the power to expand or contract the money supply via control of the fiat money, the goverment has more control over monetary policy.
What Does the goverment care about gold when it is not the money supply? >>
Hummm yes but not total control, much of the money supply is in foreign hands and not under direct control...
I'm just asking hypothetical questions of what would happen, if for some 'god only knows' reason, it was done.
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That cracked me up and I tend to agree.
I also agree it would be the best thing for gold collectors, and I doubt even the Mint could consider it’s gold bullion offerings true bullion with the markup being charged.
Also I don't think there would be a significant effect on world gold pricing or currency valuations.
PS: Why wouldn't China encourage private ownership? So much easier to confiscate when it’s in house!
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This time some of us won't return
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870