Many are worried that if another financial crisis hits, their gold will be confiscated by the US government. But First National Bullion and Coin have some helpful insight. They offer precious metals services and expertise at competitive prices and offer reliable information regarding gold holdings.
First and foremost, it’s essential to remember that governments have seized assets – including gold – during times of economic instability in the past. President Roosevelt asked Americans during the Great Depression 89 years ago to turn in their gold holdings.
Legality
There is an persistent myth that the United States government can seize gold from American citizens. Although this was possible during a severe economic crisis in 1933, such actions would likely prove far more challenging in modern society.
To understand this phenomenon, one needs to revisit the history of precious metals confiscation. Beginning in 1933 with President Franklin Delano Roosevelt’s Executive Order prohibiting Americans from possessing gold and mandating that it be surrendered in exchange for paper dollars, precious metals confiscation became illegal across America.
Refusing to comply could result in heavy fines and imprisonment; fortunately, this policy only lasted a few years before it was reversed; but, its threat remains very real for investors today; although chances of your government confiscating your investments may be slimmer if they remain outside banking systems and stored safely at home.
Taxes
Although not widely held, there have been reports that the IRS has been raiding safe deposit boxes and other locations where gold might be hidden in solid form. While this claim has never been confirmed to be accurate, it would be prudent to consult a professional tax consultant regarding their views before acting on any assumptions of its veracity.
As any form of income is subject to taxation, precious metal purchases should also be documented for taxation purposes. Doing this will help prove that money used for their purchase was obtained legally and legitimately.
Although governments have confiscated gold in the past, they are unlikely to do so again without some sort of financial crisis and decreased purchasing power for dollars. Therefore it’s essential that your gold be stored safely within an area with strong bank secrecy laws in order to mitigate risk associated with this kind of scenario.
Security
If you keep gold at home in your safe or vault, it is essential that you recognize it may be vulnerable to theft. While most reputable storage providers provide top-level protection, storing precious metals away from home may minimize this risk.
Though there’s always the risk that government could seize gold bullion, it’s highly unlikely. There are no laws which support such confiscations; however, in times of extreme crisis governments often ask citizens to hand over any assets held in gold form as security for government authorities.
As evidenced by past dictators such as Saddam Hussein in Iraq and Cuba’s communist dictators, gold has often been seen as essential to national security by these regimes – they seized it at gunpoint from citizens leaving nothing behind for return in return. We should fear a similar outcome happening again with today’s debt-laden global society.
Storage
Due to recent political uncertainty, an increasing number of investors are turning towards precious metal investments as an insurance policy against instability. Such investments often rely on gold’s ability to maintain or increase its value during turbulent times – however many fear possible confiscation.
Storing gold at home is risky because thieves can quickly gain access. Additionally, homeowners insurance often doesn’t cover precious metals – which requires purchasing an additional policy or taking other steps to secure the collection.
Bank safe deposit boxes offer an ideal way for those storing gold to protect it against theft and inflation, yet their use comes with some potential drawbacks: trusting that banks will remain operational during a crisis can be hard, accessing items outside regular banking hours can be challenging, and items stored there aren’t protected under FDIC insurance; thus it is crucial that additional protection be purchased as a safeguard.
