To "The Precious Metal Purchasing Act" From Executive Order 6102 - Santelli's Take

Tyler Durden's picture

"Ever heard of SB3341?" is Rick Santelli's opening salvo in today's rantless discussion of the concerns he has with Illinois' 'Precious Metal Purchasing Act'. While passed in the Illinois Senate last year, and moth-balled in the House since, Rick notes that "the long and short of it is is they want an audit trail to any precious metals, whether you're talking coins or bullion." It does not seem too much of a stretch to this Chicagoan to the 1933 Executive Order #6102 that confiscated gold and cleared the way eventually for Nixon's 1971 disconnect of the dollar from gold. As Liberty Blitzkrieg's Mike Krieger notes: "So let me get this straight.  First they want gun registration and now precious metal registration?  I’m sure the government would only use such information in our best interests, because as we all know: Your Government Loves You.  Sounds reasonable, after all, only 'terrorists' buy guns and gold anyway."



From the bill (found here)

...Provides that a person who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller. Provides that a person who is in the business of purchasing precious metal shall not pay for the precious metal in cash and shall record the method of payment.


Requires the purchaser to keep a record of the sale for one year or, if the purchase amount is over $500, for 5 years.

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Lendo's picture

Illinois blows.

If it weren't for my over-employment and family, I'd move to Indiana in a heartbeat. Fuck you Illinois.

Jam Akin's picture

I'm thinking about building a secure storage facility/indoor shooting range over the border in Indiana.  Maybe call it Jam Akin's Lock and Load or some such.  Business will be "booming" very soon.

sudzee's picture

Government FEARS gold. The great fiat ponzi requires all in by everyone. Slippage to physical PM's is not good.

H E D G E H O G's picture

Illinoise is the 6th giving state down the food chain with per capita spending on the welfare rolls. It is in the top 3 for State UNfunded liabilities. It just passed into law giving ILLEGALS the right to LEGAL DRIVERS LICENSES. It's the transitory home of the Great Black Magi in DC(Disgusting Capitol). It has the #1 city for gun deaths in the world, in Chicago Land. Now it wants to track anything that has value.


CharliePrince's picture

illinois is a crooked state.. it will implode someday and the crooks will steal


whatever is left....crooks being the pols

Debugas's picture

real revolution is when you stop paying taxes

Monedas's picture

"If it's white .... it's allright, if it's yellow .... let it mellow, if it's brown .... flush it down, if it's black .... give it a whack !" .... Joke on the wall of Chicago Planned Parenthood clinic bathroom !   LOL

plata pura's picture

silver be an industrial metal.

Nottingham's picture

The IL Senate vote was unanimous, 56 Yeas, 0 Nays.   Thanks "GOP"!!!


But honestly, if someone did complain about this new law, then the "Government offical" could simply state:   "You just want to avoid paying cap gains tax."   How would anyone us rebutt this??

Pareto's picture

Simply tell them that the exchange value of gold/silver/whatever PM, hasn't changed.  You say to them, I can't buy anything more with my gold today, than I could 10 years ago.  No gains.  No tax.  So fuck off tax man.  How about that?

newengland's picture

I like Mr Santelli very much - a rare person on main scream media, as he appears to address the cause of our present troubles, not just the calamity.

For him, for you, I post the following link. Mr Santelli is correct: registration is merely theft by stealth, and the government and its overfed house cat bureaucrats plot to make debt slaves, work slaves of all...if they can get away with it.

I say NO, and so do most law abiding people.

This is a video from a group founded in the 1980s called 'Jews For The Protection of Firearm Ownership', and their Rabbi spokesman. He denounces people like Soros, Bloomberg, Feinstein and others who defy the Tora, and seek to make people defenseless...just as Hitler did, as Nazis do.

Everywhere and in every time: gold, silver, land and guns have been the common person's defense against would-be tyrants. Resistance is good. Dissent is good. This is the Constitution and Bill of Rights in the USA.

Everywhere and in every time: would-be tyrants abuse the people when the people are denied gold, silver, land and guns, and free association with their neighbor - otherwise known as free speech in the USA.

besnook's picture

good .govs want their people to buy gold(china and india) as a last backstop for a stable domestic economy. bad .govs want to know who has the gold they will need as a backstop for preservation of the status quo.

did you guys really think .gov was going to leave your gold coins and bullion alone?

junk jewelry and silver is the way to go. you get precious metal and precious stones anonymously without any .gov interest at a huge discount to intrinsic value.

newengland's picture

Yeah...sort of. Those 'good.govs' cannot afford enough gold and silver to finance their ambitions, so they urge common folk to do so.

Problem: China is the communist Politburo. India is the caste system. Both fascisti.

besnook's picture

there is a .gov that isn't fascist? india nor china are poor anymore. they have plenty of money to flaunt their new found wealth. in an ironic twist, the west has state welfare programs to keep the people docile in tough times which will fail(the eurozone) in real tough times while discouraging the self sufficiency of gold and the communists and whatever the indians are(what are they?) are encouraging the private purchase of gold to keep their masses docile because they don't want a welfare state.

newengland's picture

$1 a day is wage slavery for the masses, although better than their recent past I guess... and riches for the Indian caste system, and Chinese Politburo.

Nazis do like willing slaves. You're it.


besnook's picture

in 1960s tokyo i could spend an entire day in downtown tokyo riding the train eating lunch and dinner on a dollar and with another dollar actually buy something that was valued ten times more in the usa at the time. the japanese people earned very little at the time but it was clear they had a much higher standard of living than the dollar/day meme americans understood.

the standard of living in china and india has increased dramatically in the last 20 years. the chinese have been more successful in terms of rate of growth but india probably has a more sustainable rate of growth given that half the population doesn't appear to have much interest in the western interpretation of success as measured in material goods. just as there was a lot of easy money in japan in the 60s and 70s there is a lot of easy money in china and india today for those who want to take advantage by staking out a spot in the flow of money. you are a slave if you want to be one. it has become a choice.

in the event of collapse, the west has much further to fall(unlike the thirties) exacerbated by the lack of survivor skill sets from manual labor to street smarts including the willingness to kill and intrinsic assets like land, gold and community. china and india will just go back to whence they came just a few years ago with stories about the glory days bartering their limited goods and skills for food augmented by chips of their gold jewelry which is already accepted as a medium of exchange.

newengland's picture

Japan: bust, broke, old men walking on the grave of their work slave young who will die much earlier.

China: the Politburo, communists; Mao et al will murder any dissent, as they do now.

India: that place where the gang rape of a 19 year old medical student who died of internal wounds after assailants shoved an object up her brought thousands onto the streets in protest, beaten down by .gov thugs who want the status quo, where ordinary indians are vulnerable, and statists lord it over them....excusing thugs like the rapists because Big Brother state likes frightened people, all the better to use and abuse them for globalist corporatist fascist ways.

Gandhi believed in peaceful mass civil disobedience, and rightly said that the worst offence of the British overlords was to disarm the people, and leave them at the mercy of rulers.

delacroix's picture

the indian government, is trying to discourage gold investment. it is the sentiment of the people, that drives the gold demand.

besnook's picture

it is thousands of years of  culture that drives the sentiment. indian .gov is giving lip service for the pleasure of goldman suchs. there is no way they could influence demand. they tried and they had to back off. the latest measure will result in a black market of smuggled gold and off book money changers. in the meantime the central bank is half heartedly pushing paper gold knowing it is like selling ice to eskimos.

newengland's picture

thousands of years of distrusting .gov and no way to protect themselves, as the recent outpouring of protest over the gang rape of a medical student who died proved, as thousands say that they live in fear of their women being raped every day due to .gov inaction, while it serves .gov corporatists...for more than the pittance people are paid in Chindia.

The Chindia elite like the caste system, the communist system because it profits them most.

alfred b.'s picture


     I'm a caveman carrying a big where is that 'tiny dot' from yesterday???


newengland's picture

.gov fears the people with real power: the people with gold, guns, silver, land and genuine community.

Gandhi said that the most grievous thing committed by the British overlords was to disarm the people, so they were defenseless.

And Gandhi was a man preaching peace, civil disobedience. He knew the ways of the enemy.

And you? Agent provacateur or genuine community?

AndrewJackson's picture

As a resident of illinois who has made several 1000s in cash purchases over the past years, I would like to explain to these dimwitted control freak  politicians what the effects of said bill will be.


Bill enacted ---> Majority of Bullion Purchasers take business to Indiana ---> Profit of Illinois Bullion Dealers goes down ---> Taxes paid by Illinois Bullion dealers goes down ---> Illinois Cash Deficit Increases

newengland's picture

The 'useful idiots' and 'educated fools' as Lenin described them want power ... and they think that they will make most off the backs of anyone they can crush into submission: wage slaves, tax slaves, any slave will do.

ejhickey's picture

SB3341 was introduced by state senator Kirk Dillard , REPUBLICAN.   with friends like this , who needs enemies?


my new name for the senator is Kirk Dildo

Winston Churchill's picture

Dildo's have a use,unlike senator Dullard ,er Dillard.

Manic by Proxy's picture

You are correct sir. With a dildo you can actually go fuck yourself.

Lucius Cornelius Sulla's picture

Good way to move gold sales out of state.


W74's picture

Indeed, it'll kill numismatic shops in Illinois.  It's not too a long drive from the center of Illinois to any of it's boarders.  Worth the drive if you're making such a large purchase and don't want to be tracked, better if you're headed in that direction anyway.

I'm not sure how safe our safe deposit boxes are going to be.  The government will probably want registration of those too.  Want a P.O box for privacy and security of your mail?  Well you must have "something to hide" and are therefore a bad guy.  Nothing is a stretch anymore, personal privacy and property rights are going to the wayside and the rate of errosion seems to be picking up these days.

lakecity55's picture

Hey, they were on their way with using negro hordes to kill everyone, why not take the gold, too?

Ozone wants the killing to continue.

He is a true Pyschopath, amigos.

And we are deep dookie.

Nottingham's picture

Harlan J. Berk (coin shop) in DT Chicago, at Clark and Washington Streets, already takes a copy of your ID and issues a receipt for every sale.  They keep records already.  

Never One Roach's picture

Long diapers and Black Markets.

disabledvet's picture

Aka the "Rahmbo the Magnificent Act"? Can't say I have heard of it. How about you Officer? Cuz I have heard "he's out 125 billion in pension money and thinks the answer is stealing." to which I say...GOOD LUCK!

disabledvet's picture

I got sent to the back of the bus for that one? Man...I thought that was funny. "Not as funny as Illinois going bankrupt in the middle of the greatest bull market for muni debt" I guess.

disabledvet's picture

"hey Rahmbo! New York will be glad to cover that expense. For a small fee of course. You're on your own with Exelon though. You might want to give Indiana a heads if something goes wrong as well." And remember..."Jesus saves but George "baby face" Nelson withdraws!"

stlouistrader's picture

anyway I wish I could short ZH....this market is not going down....we will get some corrections over the next 10 years BUT from what level?...Mkt goes to 15k soon and lets say we get a 10% correction...really what does that mean...just not worth timing it...the news couldnt be worse...europe, japan...all the printing...people think that the road will come to an end soon and the can wont be able to be kicked any further....i just dont see it anytime soon...only thing that reverse this market is from  major social unrest or an event that completely comes out of the....obama could mint 10 1 trillion coins....i know its bullshit but the tape says wise...zh is a great read, extremely bright people running the blog...just don trade on it.

Right Wing Nut Job's picture

Everything in financial markets, and in life really, should be viewed in the context of relative value.  

The idea that the S&P (priced in US dollars) continues to increase nominally is only relevant to the single alternative of holding US dollars instead.  

I think you'd find that very few people on ZH are more bearish on stocks then they are on fiat currency.  The "recovery" in stocks (and housing) since 2009 is completely non-existent if your x-axis is gold, silver, food, oil, education, healthcare, insurance, energy, ammunition, other countries' markets, and/or virtually any other conceivable option that isn't directly manipulated through US government interference.  

Also taking a particular time-frame of an assets' performance during a period in which trillions of dollars of liquidity have been added through increased public debt which has yet to be budgeted or accounted for in any will obviously skew your nominal returns as well.  The very intention of such temporary actions is to instill the belief that you seem to exhibit in the "market value" even when that belief is in direct opposition with logic, economics and even common sense.  The losses of real value that should have been realized in stocks has simply been monetized and realized elsewhere and/or not realized yet.

Anybody sitting long the US S&P is doing so at an unprecedented level of risk and, more importantly, is only creating net-positive real returns vs people who seem to understand these concepts even less then you do, but I think most of us would happily trade our dollars for anything else.

helping_friendly_book's picture

I am having nice and steady arbitrage gains converting USD denominated savings to RMB denominated savings. I only get 1099 on interest which isn't anything but, the ratio has gone from 7.4:1 to 6.22:1. 

When the Chinese shank us and sell T-bonds short, the ratio will go to parity and lower. It is also FDIC insured. I'm almost a yuan i.e......I'm short the S&P 500......a small position.......I stack my employer contribution in a MM......I sleep allright.....The market getting juiced by the QE give away makes my skull burn but, when the petro-dollar monopoly is broken the USD is done.

SpicyTuna's picture

Who is to say how long it can last. Two years ago I would have said GAME OVER in 5 years or less, but now I'm not so certain. You can't make empirical predictions... but you can make rationalist or qualitative predictions, you can recognise certain trends and where the will lead, you just don't know the timing nor the full scope. So making quick trades doesn't seem much more than luck and guessing which way the price mechanism is going to be distorted by major market participants, but you can take steps to preserve your wealth and amass valuable skills and knowledge that isn't necessarily valuable now.


I'm thinking the main reason why it has not hit the fan yet, is the incredible interdependence between all major nation states/powers. Europe, or Japan or the U.S. will not go down by themself... when it goes down, EVERYONE goes down. It's in the interest of everyone to keep the entire house standing and to patch up those weak pillars that are crumbling. In the past though, such pillars were allowed to crumble, as they did not take the house with it [or perhaps more aptly, these 'pillars' supported separate, isolated houses, as opposed to one singular house of the current age]


From about the 15th century to mid 20th century major powers and empires regularly disintegrated with relatively modest effect on the remaining civilised world. These were individual or localised collapses, as opposed to a systemic collapse we are facing. Now, with such interconnected and interdependent trade, finance, law and culture - a major power collapsing would probably trigger a systemic collapse, as 2008 showed a very minor sneak preview of. There's only so many times you can hit the 'oh shit[print]' button, and even then it worked far less effective than previous occassions.


The last time such an incredible degree of globalisation and interdepedence was observed, was preceding the medieval collapse. Before that, the Roman empire. Before that I suppose the bronze age collapse? These epochs of rapid change and instability don't happen often.

loub215's picture

Next, canned goods, MREs, and perishables... we need more re-distribution... We get the Government we deserve...


loub215's picture

Next, canned goods, MREs, and perishables... we need more re-distribution... We get the Government we deserve...


El Hosel's picture

Pass the baseball, the apple pie, and piss on the truth.... Just asking for the truth makes you are a terrorist these days.

Downtoolong's picture

The thing that government and the banks fear most about gold is the ability to possess it outside of their knowledge. It is the form of money which resists centralized control, manipulation, monitoring, and taxation, giving individual people more power over it. Try putting your 401k in a treasure chest and burying it in your back yard. Naturally, TPTB can’t have any of that sort of thing going on.    

joego1's picture

My IRA has a back yard. I have a self administered IRA. I bought property and developed a well on it. Now I'm renting it and the banksteta can kiss my shiny.

joego1's picture

Sorry, I ran out of TP and used my silver records to wipe my ass.

Youri Carma's picture

Beginning On Page 264 of T H E  R I S E  O F  T H E  F O U R T H  R E I C H  By Jim Marrs

Hitler and his ilk were against keeping arms in the hands of citizens, especially conquered peoples.

Hitler once declared: “The most foolish mistake we could possibly make would be to allow the subject races to possess arms.

History shows that all conquerors who have allowed their subject races to carry arms have prepared their own downfall by so doing.

Indeed, I would go so far as to say that the supply of arms to the underdogs is a sine qua non for the overthrow of any sovereignty.”

Still, the Nazis were not content with the stringent gun laws already on the books.

In 1938, they strengthened these laws by asserting that only loyal Nazis could own weapons.

This was codified in the Nazi Weapons Law of March 18, 1938.

A group opposed to gun control, called Jews for the Preservation of Firearms Ownership, Incorporate (JPFO), has made the shocking but well- supported argument that U.S. gun-control legislation is based on this Nazi law.

“JPFO has hard evidence that shows that the Nazi Weapons Law (March 18, 1938) is the source of the U.S. Gun Control Act of 1968 (GCA ’68),” stated the group on its Web site.

“The Nazi Weapons Law of 1938 replaced a Law on Firearms and Ammunition of April 13, 1928.

The 1928 law was enacted by a center-right, freely elected German government that wanted to curb ‘gang activity,’violent street fights between Nazi party and Communist party thugs.

All firearm owners and their firearms had to be registered. Sound familiar?

‘Gun control’ did not save democracy in Germany. It helped to make sure that the toughest criminals—the Nazis—prevailed.”

JPFO literature noted: “The Nazis inherited lists of firearm owners and their firearms when they ‘lawfully’ took over in March 1933.

The Nazis used these inherited registration lists to seize privately held firearms from persons who were not ‘reliable.’

Knowing exactly who owned which firearms, the Nazis had only to revoke the annual ownership permits or decline to renew them.”

newengland's picture

And the Nazi propagandist Goebbels said no one would go to war unless they were forced to do so. 

Here in the USA, we are paying for endless war by politicians who serve the biggest banks, and warmongers  - against the will of the majority and the minorities. Time to throw the money changers out of the temple, again. The crypto-Nazis want to disarm us, and wage endless our expense. They Party on. We pay, and suffer.

Shalom, my friend.