I can sum up my nearly 30 years in the precious metals business in two simple statements.
First, OWN GOLD! Get as much as you can for your cash, in whatever form. Not owning any gold is an admission that you are comfortable with our nation’s monetary policy. If you’re reading this, you’re out of that camp. Unfortunately, many of our friends and neighbors are still unaware. They have no idea what’s coming.
The second stance is more subtle, but just as important. I consistently promote $20 U.S. Gold Coins, the Liberty and St. Gaudens designs, in these announcements, touting the merits of their privacy and protection from confiscation. Today, I’d like to share some good information, and allow you to decide whether it’s hype or is this worth considering?
The Precedent is there:
1. FDR’s famous Executive Order 6102 dated April 5, 1933. During the height of the Great Depression, the American President made it illegal to own gold with the stroke of a pen. Sold to the people as a way for them to do their part in helping Uncle Sam manage the crisis, Americans traded their gold coins and gold certificates for Federal Reserve Notes. Shortly after, the value of gold which had been set during the infancy of this nation was revalued from $20.67 per troy ounce to $35 per troy ounce, netting the government a 75% profit while simultaneously shackling the citizenry to devaluing paper currency.
2. How would this look today? Once physical cash is eliminated, and money exists in only digital form, gold and silver will be the only form of physical money. The current trajectory of debt and deficits are sure to continue, bringing negative interest rates. It won’t be long before $28 trillion in debt becomes $40 or $50 trillion. As the purchasing power of digital dollars decreases rapidly, there will be a run-on precious metals. Coins will disappear.
3. Confiscation 21st Century Style: This rush on gold cannot be maintained. The system depends on spending, the velocity of dollars. Buying gold inherently freezes that velocity. When this is determined to be harmful to growth, look out!
When people value gold over dollars, is when your gold is at risk.
This is the $20 Liberty and St. Gaudens time to shine. Now, I’m no sage, soothsayer, or palm reader, but I can read a document. Written into the language of Roosevelt’s order from 1933 is a clause stating that an exemption applies to “gold coins having a recognized special value to collectors of rare and unusual coins.” It would be difficult for them to claim that 100+ year old coins do not apply. In this century, $20 U.S. Gold Coins make up a small percentage of recognizable assayed gold available for purchase.
Desperate, and mired in debt, there is no telling how far the government will go, but at least this gives you a level of insurance you don’t get from modern bullion.
It is something worth considering now, before the crisis hits. When it does it’ll be too late. Coins are available to buy or to trade for your modern bullion. Though they may cost a few dollars more on the front end, their collectable status may just be, well, priceless.
I’ll leave you with this. Written into the contract I have with the insurance provider for my business are several exclusions that would enable them to not pay a claim. Among the more frightening are loss or damage to consequences of war, foreign invasion, civil war, rebellion, or insurrection. I’ll allow you to ponder what that would look like. Also, there is another exclusion which I’ll present in full.
H. Loss or damage caused by or resulting from confiscation, nationalization, requisition, or destruction of or damage to property by or under the order of any government or public or local authority.
I’m not saying this will happen tomorrow, but I urge you to weigh the risks and make moves to protect yourself.
