Gold Act 1975 & Bullion Act 1985 - Real Motivation?

AuAgPt

This one has always made me wonder, but what was the US Govt's motivation for enacting:

a. Gold Act of 1975 (PL 93-373)
b. Bullion Act of 1985 (PL 99-185)

What would be the consequences today if one or the other would not have been enacted? Obviously, one couldn't legally own say AGE's, etc...but I'm trying to understand the perceived economic consequences, if there were any back then, that made these Acts law? Preventing Black Markets, etc?

Private ownership of gold seems 'anti-govt', so the fact that we even have these two Acts is an oxymoron to me. I'm glad they exist though!! cheers and look forward to any insight here... --AuAgPt

PerryHall

Before gold bullion was legal to own the gold bugs as they were known would buy pre-1933 U.S. gold coins---especially the Eagles and Double Eagles and foreign gold coins that were essentially bullion coins such as Mexican 20 and 50 Pesos, British soverigns, Austrian 100 C, Russian 5 & 10 R, German 5 M, etc. There was plenty of legal gold bullion around in the form of pre-1933 coins to meet demand.

jmski52

I don't know about the Gold Act of 1975 or what might have motivated it, but I truly do believe that Reagan, Regan and the Congress during the early 1980's did us all a favor and did it quite intentionally as a hedge against what they saw coming in the future.

derryb

In 1933 excutive order made it a illegal for U.S. citizens to own or trade gold anywhere in the world, with exceptions for some jewelry and collector's coins. These prohibitions were relaxed starting in 1964 – gold certificates were again allowed for private investors on April 24, 1964, although the obligation to pay the certificate holder on demand in gold would not be honored. By 1975 Americans could again freely own and trade gold. The 1975 Gold Reserve Act authorized the Exchange Stabilization Fund to use assets that were not needed for exchange market stabilization to deal in government securities. The Gold Reserve Act had economic ramifications far beyond national finance. At that time many contracts stipulated that their monetary terms could be demanded in gold. Such gold clauses were intended to protect against the United States devaluing the dollar. When the Emergency Banking Act of 1933 and the Gold Reserve Act of 1934 outlawed the use of gold such contracts became sources of controversy. In the gold clause case Norman vs. Baltimore & Ohio Railroad Co., 294 U.S. 240 (1935), the U.S. Supreme Court ruled that gold clauses were invalid. However, Congress later reinstated the option to use gold clauses for obligations (new contracts) issued after October 1977.

The Gold Bullion Coin Act was the result of an idea presented by Congressman Ron Paul to President Ronald Reagan's Gold Commission in 1981. It create the American Eagle program and was an effort by Paul to improve access to physical bullion by the American public. The Act stipulates that the gold used for producing American Eagles comes from newly mined sources within the United States.

The first act basically restored the right to stack and the second act provided a domestic source for bullion coins. Why? Because some elected officials actually do what is best for of their constituents

jmski52

I truly do believe that Ron Paul, Reagan, Regan and the Congress during the early 1980's did us all a favor and did it quite intentionally as a hedge against what they saw coming in the future.

Previous premise updated.

ricko

Sure would be nice to see an audit of the gold in Fort Knox - and what the Fed has.... as Ron Paul keeps demanding....Since it does not happen, it sure feeds conspiracy theories. Cheers, RickO