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Guest Post: A Step Towards Gold Confiscation

Tyler Durden's picture





 

Submitted by John Aziz of Azizonomics,

In attempting to stimulate risk appetite by taking “safe” assets out of the market, the Fed has actually achieved precisely the opposite of stimulating productive investment. First, it has turned bond markets into a race to the bottom as bond flippers end up piling into the very assets that the Fed is trying to discourage ownership of  — because who care about low yields when the Fed will jump in at an even lower price floor, thus assuring the bond flippers a profit? Second it has energised other safe asset markets (such as gold) as longer term investors look for alternatives to preserve their purchasing power in the context of a global economic depression.

The Fed is firing at the wrong target; the real problem — the thing that is causing investors to scramble for safe assets — is an economic depression brought on by (among other non-monetary causes) the deleveraging costs of an unsustainable debt bubble. Without addressing the problem of excess total debt — and quantitative easing aims to increase lending — the Fed is firing blanks.

However, there seems little prospect that the Fed will listen to the debt-watchers who actually predicted the crisis. The likelihood is that the Fed will continue to attempt to take safe assets out of the market. And after treasuries, what will the Fed try to take out of the market?

Izabella Kaminska writes in FT Alphaville:

Fed purchases are the equivalent of hoarding the system’s supply of safe assets on the Fed’s own balance sheet, and in so doing preventing private investors — especially money market investors – from investing in the assets on favourable terms.

While this is mostly the point of QE — the idea, after all, is to stimulate risk appetite and cause investors to change their portfolios — a continued lack of risk appetite means the money created, rather than flowing into risky securities as hoped, is only crowding out the last remaining safe securities in the market instead. The consequences are negative rates and principal destruction — a lethal combination that is arguably far more dangerous and deflationary than no QE at all.

The idea that the Treasury could once again become the gold buyer of last resort, in exchange for liquidity, is interesting to say the least. Not only would such a strategy ease the squeeze in the Treasury market, it would do so without compromising the liquidity effects of QE.

What’s more it could help to support and stabilize the gold price, while taking zero-yielding safe assets out of the system in favour of yield bearing ones — giving money markets a fighting chance for survival in terms of yields.

While gold purchases have never been communicated as official central bank policy, there’s no denying that a shift in this direction is taking place. Be that wittingly or unwittingly.

A little behind the curve.

Last September I noted:

Bernanke has already heavily targeted yields on treasuries which have absorbed liquidity that has departed from productive ventures. But in recent years gold has offered a significantly increased yield over treasuries.

So what’s a central banker who wants to force investors into productive ventures to do? You can’t print gold — but you can buy it, and take it out of the marketplace.

And as the price of gold (in fiat) continues to rise, buying gold is exactly what central bankers may do.

Just as Roosevelt went out of his way to remove gold from the marketplace, the central bankers of today may eventually determine to do the same thing.

The main question if such an event were to occur is just how “compulsory” such purchases might be.

 


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Thu, 08/09/2012 - 22:12 | Link to Comment ACP
ACP's picture

That's just the starting point this time around, BITCHEZ!

Thu, 08/09/2012 - 22:19 | Link to Comment Mr. Fix
Mr. Fix's picture

This plan would solve to many problems. That's why they'll never do it.

Thu, 08/09/2012 - 22:51 | Link to Comment Western
Western's picture

The sign says "postmaster, please post in a conspicuous area". If you never get contacted by the government, then you don't have to do anything.

 

"No sir I had no idea.. didn't see the postmaster's sign"

"No sir I did not receive a letter from the government, I'm sure it must have been returned to sender unopened"

"No sir, didn't pick up the phone, didn't know who was calling"

"No sir, didn't open my door to the federal agents.. must have been sleeping"

"My gold? Oh I dropped it in the boating accident"

end of story, nobody gets your gold.

Thu, 08/09/2012 - 23:30 | Link to Comment Benisprintingqu...
Benisprintingquintillionsbehindourbacks's picture

After spending a lifetime accumulating Gold, I realize I was wrong after reading this brilliant article and I will give all my Gold to the Fed tomorrow. I will then watch my paper dollars devalue with "positivity"

/sarc off

Thu, 08/09/2012 - 23:39 | Link to Comment engineertheeconomy
engineertheeconomy's picture

Is ther some good reason this fucking stupid troll "John Aziz" is here on Zerohedge?

Come on Tyler(s), we would all like to hear any justification for this B.S... 

Fri, 08/10/2012 - 05:01 | Link to Comment Bullionaire
Bullionaire's picture

I think what this chap meant was, "FT Alphaville - stopped reading right there."

 

Fixed it.  No charge.

 

Fri, 08/10/2012 - 04:45 | Link to Comment paddy0761
paddy0761's picture

24 hours in Guantanomo Bay and you'll tell them where it is. You'll tell them shit they don't even want to know.

Fri, 08/10/2012 - 09:14 | Link to Comment TeMpTeK
TeMpTeK's picture

Gold confiscation was a myth then and now

http://www.youtube.com/watch?v=HuMmQX2TWoQ

Fri, 08/10/2012 - 12:22 | Link to Comment zrussell
zrussell's picture

In the video the guy who had his bank-depositied gold confiscated sued the bank for giving up his gold. The next day he was charged with failing to report his ownership. It was thown out on the technicality; that the wrong person signed the presidential order.

Why was the case not thrown out because the US gov doesn't have jusistiction to command citizens in the 50 states?

I would think that if O-care can be forced on the citizens of the 50 states, anything can now be "presidentially" ordered. (Que the gold-sniffing drones...)

Thu, 08/09/2012 - 22:18 | Link to Comment Central Bankster
Central Bankster's picture

You have to first destroy the economy, in order to save the economy.  "It's all part of the plan."

 

http://www.youtube.com/watch?v=G0AXgaFqEas

Thu, 08/09/2012 - 22:48 | Link to Comment Dr. Engali
Dr. Engali's picture

Introduce a little chaos..... Upset the establishment.

Fri, 08/10/2012 - 03:33 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

So the Fed is going to be one of the last central banks in the world to begin accumulating gold since the financial collapse?

Do the brainiacs at the Fed realize that the Chinese, Indians, SE Asia and the Mid East are providing THE FLOOR under the current gold price?

I find it more likely that the Fed will attempt to corner the PAPER gold market than the physical gold market...

Thu, 08/09/2012 - 22:15 | Link to Comment howenlink
howenlink's picture

Digging hole now.

Fri, 08/10/2012 - 04:30 | Link to Comment AmCockerSpaniel
AmCockerSpaniel's picture

Dig very deep, very, very deep.

Fri, 08/10/2012 - 07:14 | Link to Comment kieran1968
kieran1968's picture

...and if you have to give up something...practise in front of the mirror until you refine an Oscar winning performance:

 

"You mean the Credit Suisse bars i bought were cheap chinese fakes... oh my... I feel such a fool!"

 

 

Thu, 08/09/2012 - 22:15 | Link to Comment Mr. Fix
Mr. Fix's picture

China is already doing it !

Thu, 08/09/2012 - 22:17 | Link to Comment Dr. Engali
Dr. Engali's picture

John
I think the premise of your post is off base. You and others think the fed wants to push people out into risk assets, because that is their "stated policy". I say the fed wants people rushing into bonds to keep the governments borrowing cost ultra low. The rising equity market is a residual effect welcomed by the fed but not their true primary goal. It helps to keep people off balance and scared. Rushing into bonds on every little dip.I've learned a long time ago to ignore their words and observe their actions.

Fri, 08/10/2012 - 03:48 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Dr E... Why would the Fed need buyers for US T paper when they are buying (through PDs) the vast majority of it themselves? If need be, the Fed will simply buy it all.

Interest on T paper is 'ultra low' because the Fed is buying far more than enough of it do drive rates ultra low. period.

It's obvious by now that the Fed doesn't care about the size of their balance sheet. Even if they did what could they do about it? Raise interest rates? :)

Or, perhaps you are aware of a Fed exit strategy that I have not heard about?

 

Fri, 08/10/2012 - 06:56 | Link to Comment Dr. Engali
Dr. Engali's picture

The fed isn't buying everything and if you look at their balance sheet is actually had a slight contraction. They need everybody buying that they can get and they are getting it. If they didn't have this game going of front running the fed they would have to print a lot more to maintain these rates.

Fri, 08/10/2012 - 07:26 | Link to Comment Aziz
Aziz's picture

I agree that QE is really about keeping Treasury borrowing costs as low as possible. (A point I have actually made many times myself).

Just as printing money to buy gold wouldn't really be about removing safe assets from the marketplace. 

Thu, 08/09/2012 - 22:16 | Link to Comment LoneStarHog
LoneStarHog's picture

"...buying gold is exactly what central bankers may do." --- Maybe if you had a friggin' clue you would read the reports showing that GOLBAL CENTRAL BANKS have been BUYING GOLD in large quantities, especially CHINA and RUSSIA.  Central banks were SELLERS of gold, but they have been BUYERS for some time, now.  Do yourself a favor before writing one of you missives and DO SOME DAMN RESEARCH.

Thu, 08/09/2012 - 22:16 | Link to Comment poor fella
poor fella's picture

As far as confiscation, there's not enough 'force' behind such a move today. There's A LOT of people armed to the teeth, pissed off like never before, and completely disenfranchised in this current system to allow anything like this. You pull this shit on my neighbor, I got their backs, and vice versa. These fucking tools think their 'spy' shit is going to mean something? Boots on the ground baby, and they don't have them.

Thu, 08/09/2012 - 22:27 | Link to Comment boogerbently
boogerbently's picture

They can't "confiscate" equity ownership in foreign (gold) companies.

Thu, 08/09/2012 - 22:33 | Link to Comment Central Bankster
Central Bankster's picture

Yes they can by taxing at such a high rate that the equity is nearly worthless and/or the foreign country may nationalize or tax at a rate high enough to make it worthless.  Check what is happening in Argentina and Bolivia over the last 12 months.

Fri, 08/10/2012 - 04:14 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Nice one CB. About fucking time someone said something which made sense!

Peope are worried about Gold being confiscated...LOL...wake up fuckers, shaking the tree the past 12mths is doing just that. Besides, what percentage of the population own physical Gold these days, 0.1%??? Whereas every man and his dog had Gold back in the 1930's.

And I'll save you all the suspense, Gold Mines can and probably will get nationalized if things get FUBAR'd. Gold will probably break $2,000 the same day it breaks $200,000...when the Central banks are good and ready for it to do so, not a minute sooner.

My advice: Measure the tide, not the swell.

Fri, 08/10/2012 - 04:44 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

RANT 2.0

If I were part of a power-driven sychopathic family, indoctrinated and mentored with just one goal in mind, say, global glove puppet master, with my hand up every Central Banks arse. With a century or two of Merchant Banking experience and with preference to pulling the strings from within the shadows and under a multitude of layers, rather than in plain view. I'd probably create a tool which allowed me to see every movement of every significant dollar amount across the globe...every transaction (of worth) across every country and through every Bank. Yeah, I'd probably create something like,,,say,,,the BIS given enough time, money and resources.

And I'd store my wealth in physical too.

Thu, 08/09/2012 - 22:41 | Link to Comment poor fella
poor fella's picture

I like it CLOSE and REAL and sometimes get crazy and beat PMs into jewelry... RIC downgraded yesterday, but contrarian investing has always produced the best returns on my LOTTERY MONEY. These markets are F'ing broken, I get 100 free trades a year and have only used 1 or 2 this YEAR. Crazy times.

I see a hole about the size of a 100 oz silver bar that needs filling - I'll buy that dip.  ;)

Fri, 08/10/2012 - 08:39 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Cast your metal into Eiffel towers and paint them.

Fri, 08/10/2012 - 09:38 | Link to Comment Titan Uranus
Titan Uranus's picture

Beautiful!  Not many will catch that one.  Then move to Lavender Hill, mix a drink, sit back and watch the chaos...

Thu, 08/09/2012 - 22:45 | Link to Comment andrewp111
andrewp111's picture

They don't have to confiscate anything. All they need to do is orchestrate a worldwide, coordinated, multi-trillion dollar gold buying program. IMHO, the only reason they haven't done this is that very little gold is mined in the USA (Brazil, Africa and Russia mine most), and Bernanke isn't a big fan of the yellow metal anyway. Most hoarded gold isn't in the USA either. China, the Middle East, and especially India are the world's biggest gold bugs. If the Fed printed a trillion dollars for buying gold, most of that cash would leak out of the US economy as fast as it was spent. What good would it do Bernanke to stimulate Brazil, Russia, India, Saudi, and China, unless it was part of a larger coordinated worldwide plan that directed some big foreign stimulus to the USA?

Thu, 08/09/2012 - 22:56 | Link to Comment tenpanhandle
tenpanhandle's picture

this spagetti you are throwing at the wall has all slid to the floor.

Thu, 08/09/2012 - 22:58 | Link to Comment DollarMenu
DollarMenu's picture

Trouble is, as I see it, if people want gold, they will have it.  

Witness the "War on Drugs".

A success?

Why would this be any different?

Fri, 08/10/2012 - 03:08 | Link to Comment goldfish1
goldfish1's picture

printing more fiat to buy the gold is the fed's answer?

Fri, 08/10/2012 - 03:40 | Link to Comment Non Passaran
Non Passaran's picture

And then what? I wouldn't sell but I would be happy to know that the market price is going up.

Fri, 08/10/2012 - 03:54 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

and111... and I suppose you believe that China, Russia, the Mid East, et al, will go along with a Fed plan to buy up the world's gold with dollars?

What do you believe the price of gold in dollars would reach after the first hour of buying?

LOL

Thu, 08/09/2012 - 22:32 | Link to Comment oddjob
oddjob's picture

stealth confiscation and 'we buy gold' is the same racket.

Fri, 08/10/2012 - 03:56 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

"stealth confiscation and 'we buy gold' is the same racket."

'We Buy Gold' is a transfer of gold from weak hands to strong hands... A great deal of that gold is headed East and isn't coming back.

Fri, 08/10/2012 - 10:28 | Link to Comment BigInJapan
BigInJapan's picture

You're on the right path here.
This is what I'm seeing in Japan.

Fri, 08/10/2012 - 08:39 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Besides, I went out on a boating trip and took all of my gold with me, but unfortunately a big cigarette boat went by and the wake caused it to go overboard.  Took my guns overboard too :(

Fri, 08/10/2012 - 09:27 | Link to Comment lightning
lightning's picture

Gotta call you on this one.  These people who won't allow this are the same sheeple that when I try to tell them that both political parties and the bankers are stealing their money, they look at me and either tell me Romney/Obama will make it all better.  Those people?  I actually come to Zero Hedge because other than my spouse and you fine people, the rest of the world is BLIND and STUPID.  I am endlessly assured that if any "real" criminality took place then the government would "surely" investigate and prosecute it.  As for boots on the ground, they (the government) do have them and have hatched a plan to use them.  Personally, I think they will confiscate gold and do it for NO other reason than to destroy what little of the middle class is left.  The best predictor of future behavior is past behavior and I don't think they need a reason to try and take people's wealth.  BTW, in the 30's when they "confiscated" gold they did so by telling you that they would "compensate" you for said gold.  Once most gold was confiscated they then upped the cost per ounce (I think from $25 to $35) to benefit themselves.  My point here is that it wasn't confiscation without compensation, which is why it was seen as legal at the time.  In the age of the Patriot Act, NDAA, and the War on Terror they won't go after gold?  They will take your gold, your retirement account, and make sure the death panel is working before you have time to complain.

Thu, 08/09/2012 - 22:19 | Link to Comment Red Heeler
Red Heeler's picture

Bullish black market.

Thu, 08/09/2012 - 22:20 | Link to Comment earleflorida
earleflorida's picture

scary thought... but, it would telegraph to the feeble sheeple that we surely are in a depression and that war is eminent.

Would the pleasure be that of Monsignor O`bambi?

jmo

Thu, 08/09/2012 - 22:56 | Link to Comment Deo vindice
Deo vindice's picture

"scary thought... but, it would telegraph to the feeble sheeple that we surely are in a depression and that war is eminent."

War has always been eminent in the minds of TPTB.

This would make it appear imminent.

Thu, 08/09/2012 - 22:22 | Link to Comment Rattling Bones
Rattling Bones's picture

And what kind of response, in this day and age, would an executive order from Obama to turn your gold over to the Federal Reserve generate? 

 

Besides laughter.

Thu, 08/09/2012 - 22:33 | Link to Comment alien-IQ
alien-IQ's picture

Let's face it, all bravado aside, there is more than ample evidence to support the conclusion that Americans will simply (as usual) do as they are told.

For all the guns and hero worship and violence and big talk, at the end of the day...this is a nation of sheep.

They will shut up and take it...because the Idiot Box will tell them it's the "patriotic" thing to do and there is nothing more American than obeying the Idiot Box. And take it a step further...they will turn on their friends and neighbors who refuse to hand over their gold.

Thu, 08/09/2012 - 22:57 | Link to Comment Manthong
Manthong's picture

"because the Idiot Box will tell them"

Um.. I don't think they are the folks that have the monetary metals..

and they are also not likely the ones that hold Pb  as "protection against what we call tail risk, really, really bad outcomes".

Thu, 08/09/2012 - 23:03 | Link to Comment andrewp111
andrewp111's picture

Almost nobody tells their friends and neighbors about their gold. It is common sense that you don't discuss such things. If you are hoarding gold, the only one who knows it is the company who sold it to you, and perhaps your credit card company if you bought it online.

Of course, if you bought your hoard from the US Mint, the Treasury already knows you have it, or at least once did.

Thu, 08/09/2012 - 23:25 | Link to Comment JohnG
JohnG's picture

 

 

I showed my little brother (20 years my junior) where to find it, and what to do if I'm dead.  Not my wife, son, father (mom is dead), no one else. 

I can trust him for a fact to keep his mouth shut. His is in the same place :)

Fri, 08/10/2012 - 01:07 | Link to Comment HungrySeagull
HungrySeagull's picture

=)

 

I don't own gold yet. That remains to be seen.

 

Now I can buy a bunch of crappy computer CPU's and smelt these until they give up the gold inside them.

Fri, 08/10/2012 - 07:47 | Link to Comment dark pools of soros
dark pools of soros's picture

It's barely worth the effort but would make for a good reality show like a Geek Gold Rush. Sponsored by ZH

Thu, 08/09/2012 - 22:53 | Link to Comment andrewp111
andrewp111's picture

There is no rational reason for them to confiscate gold. Obama doesn't want your gold. He wants stimulus so he can get reelected. If Bernanke simply committed to buying a trillion dollars of gold, the price of gold would rise enough that most hoarders would be tempted to sell their gold, or at least sell a good chunk of it.  But the problem is that most of that cash would leak out of the US economy as fast as it was spent, as I pointed out above. Most privately held gold is in India.  Most mines are in Russia, Africa, and Brazil. Does Obama and Bernanke want to send Putin half a trillion dollars in pure profit? Not unless they are going to get  more for it than a warehouse of gold bars that will collect dust for the next thousand years on a military base in Kentucky.

Fri, 08/10/2012 - 02:06 | Link to Comment Havana White
Havana White's picture

Andrew, where are you getting youf info?  Brazil?  It's not even in the top ten.  By output in 2011, the top ten were:

1.  China

2.  Australia

3.  USA

4.  S. Africa

5.  Russia

6.  Peru

7.  Ghana

8.  Canada

9.  Indonesia

10.  Mexico

Fri, 08/10/2012 - 07:48 | Link to Comment chubbar
chubbar's picture

You might also note that China does not allow the export of gold but buys all available supply from the mines. Russia has not exported any either so between those two sources you have about 25% of mining supply that never hits the market. S. Aftica just announced that their output declined again this past year about 4% IIRC. Of course the price of gold is a lot less influenced by yearly production given that the amount of production only equates to around 2-3% of above ground supply, if that.

Thu, 08/09/2012 - 22:59 | Link to Comment Deo vindice
Deo vindice's picture

alien-IQ - I don't like what you said, but I (mostly) agree with your assessment. So ... +1 from me.

Fri, 08/10/2012 - 01:37 | Link to Comment old naughty
old naughty's picture

Ditto here.

Such is human nature, unfortunately.

No one plays keeper to brothers. So TPTB plays the role.

Damn.

Thu, 08/09/2012 - 23:46 | Link to Comment poor fella
poor fella's picture

I don't know about that.. When real desperation set in, all bets are off. Can the Fed keep the house of cards going for decades while boomers retire (and the discussion continues about raising the retirement age to 79?!) I seriously doubt it.

Some people only need an excuse (like a guy getting beaten at a traffic stop, or high food and gas prices). It's not intelligent but most people know they are being fucked by corporatism and globalization. I for one don't want to be around when naked apes get crazy and decide to burn a city, but, society is clothed in the sheerest of fabrics.

Finally, you envision a heroic type of protest full of arguments, logic, and fighting. America will never have a Randall Wallace, but something like plinking, vandalism, guerilla actions and non-compliance would do just as much damage when funds are lacking they way they are. It's hard to patrol when your cars are all torched.... I will never sell angry Americans short. (ps I thumbed up your sarc and negativism! I'm hoping the U.S. doesn't 'devo' into mindless putty)

Fri, 08/10/2012 - 00:42 | Link to Comment RockyRacoon
Fri, 08/10/2012 - 01:19 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Banzai Rocky!  Hey, it may come to that...

Fri, 08/10/2012 - 06:00 | Link to Comment poor fella
poor fella's picture

Nice! I was thinking about this and it's not patrol cars and the police people need to worry about. The invading army is all around; the cancer camouflaged within the corporate structure. When more people awaken to this fact, it's ports, the distributors of crap, and their financiers, that need actions taken against them. The less bad credit, fast food, and outsourced obsolete chachkis in the world, the better.

Sat, 08/11/2012 - 10:45 | Link to Comment RockyRacoon
RockyRacoon's picture

Yup.  You recall from your history class that the British marched, with fife and drum, in formation down the middle of the road.  Pretty stupid, huh?  Easy pickins fer the wily colonial snipers behind the shrubs.   Well, the militarized local police force and the National Guard contingent are the same easy targets.   Hell, they even have physical installations with clearly marked signage.  How easy is that?  Now, don't get me wrong.   So long as they adhere to their oath of upholding the Constitution, they are NOT an enemy.  Be assured of that.

Many pundits in the wake of the recent mass killings are saying that only the military and police should have assault weapons.  Ordinary citizens don't need them.   My view is that the regular folk need the arms because the military and police have them.  Evens up the odds a bit, just in case.  It's fair enough that theirs have a full-auto selection and ours don't -- that's advantage enough.

As someone recently told me:  "Blaming civilian killings on assault weapons is like blaming Budweiser for alcoholism."

Thu, 08/09/2012 - 23:21 | Link to Comment decon
decon's picture

Generally you're correct except the people I'd categorize as sheep don't own any pm's.

Fri, 08/10/2012 - 00:40 | Link to Comment Totentänzerlied
Totentänzerlied's picture

Funny that you're being junked for a conclusion that has very strong historical precedent - a domestic example of which was cited in the article.

OK armchair commandos, what exactly is so different today than in 1933 that leads you to believe Americans would do other than make loud noises then promptly do as told, and snitch for some extra fiat too?

History is pretty clear. Sure, they will never get nearly all of it, but that's not the point of such an exercise, now is it?

Fri, 08/10/2012 - 00:45 | Link to Comment RockyRacoon
RockyRacoon's picture

They'll have to pick another asset to seize since the general populace does not own gold.  Neither do many of us since we are such shitty boaters.   I guess TPTB will have to go for those fat 401ks.  Bottom line, the average folk WILL turn over anything they have when asked.  It's patriotic and all that doncha know.

Fri, 08/10/2012 - 02:30 | Link to Comment Missiondweller
Missiondweller's picture

Exactly, its way easier to confiscate your IRA and 401k's. That's $2.9 Trillion just waiting to be taken.

As a matter of fact there's already a plan to do it. Its called the "Universal Pension"

 

Reas more here and watch the video:

 

http://macrowealthpreservation.blogspot.com/

Fri, 08/10/2012 - 09:39 | Link to Comment lightning
lightning's picture

You are correct in saying that the general populace does not own gold.  Yet, I think they will still confiscate it, for no other reason than to ensure that no one (other than the very priviledged few) maintain their wealth.  Financial news has talked about the fact that getting physical gold and silver is becoming problematic due to demand.  I don't think they will need an over-arching reason other than they know that it is people like us who will own precious metals and we are a threat because we won't simply fall in line.  Believe it or not, folks like us make up the list of potential "threats" due to our reliance on alternative media, our lack of allegience to the current government, and our belief in the constitution.  If you also happen to be current/prior military, white male, christian, or a Ron Paul supporter, you are absolutely on Homeland Security's watch list.  Logic although important to intelligent people, is not a requirement for government regulation or employment.

Sat, 08/11/2012 - 10:35 | Link to Comment RockyRacoon
RockyRacoon's picture

I'm going to go to the trouble of posting this one more time -- as I have many times here at ZH in the last 3 years.   When gold was "confiscated" back in the 1930s (it was not "confiscated"), they were after the large institutional stores of gold.   The gov't could have given a rat's ass whether the average Joe turned in his gold coins.   Numismatic and dealer holdings were exempt anyway.   Gold was not moved from the Bank of Podunk to the Ft. Knox facility for safe keeping.  The actual metal stayed in place in the stable banks, but the ownership paperwork changed.  There was one case of the prosecution of an individual for not complying with the law and the guy had to shove it in their face blatantly for the Feds to take action against him.   Look it up -- I've posted it way too many times in the past to do the legwork again.

Get this:  They don't want YOUR gold.   By a reprise of the 1930s they would just be putting gold in the limelight -- and they don't want that.   If gold really is a non-event, why would they make it so important that it needs to be "confiscated" again.  Under the guise of "national security" or any other way?   The major financial entities hold things such as 401ks and other types of large deposits instead of the barbarous relic.  They will be after those assets next, not a lump of useless metal.

Only those who actually hold metals are paranoid enough to think Uncle Sam wants it.  Those who don't have any (like 99% of the population) would say, "Huh?", and go on with their daily routine.

Sun, 08/12/2012 - 11:28 | Link to Comment dark pools of soros
dark pools of soros's picture

I believe the point is more to stop a run from the dollar before a major repricing of gold. And second to funnel that scared money to the stock market when they are on the sell side as a bonus.

They can't have everyone go broke at the same time so at some point gold will be more than just a store of value as price controls of other things distort the market. Those holding gold at that time will see the gains they always dreamed of.

Fri, 08/10/2012 - 19:12 | Link to Comment XitSam
XitSam's picture

Because in 1933 gold was in circulation as currency, the country had just elected Roosevelt, they trusted him, they believed he was doing the correct thing for the country, even if they didn't understand it. And read the order, each person could keep 5 oz right off the top, then jewelry and numismatics too. 

Today, there are a quite a number of people that understand fractional reserve banking, gold and silver as money, etc. They own gold for reasons that do not go well with turning it in. Now gold is not in circulation, but used as a store of wealth (some think of it as investment). Political situation is very different now.

PS. I'm not a commando, armchair or otherwise.

Fri, 08/10/2012 - 07:45 | Link to Comment Peter Pan
Peter Pan's picture

The proposition put forth in the article is a waste of paper. If the FED was interested in increasing liquidity without increasing debt as well as providing interest free funding for individuals as well as businesses it could simply offer to BORROW gold from its owners and in return give interest free cash. This cash can then circulate without the disadvantages of the current debt for more debt process which QE generates.

The fear of course would be that the FED and other central banks could end up making a compulsory purchase once the gold was borrowed from individuals and corporations.

Thu, 08/09/2012 - 22:23 | Link to Comment deflator
deflator's picture

"The Fed is firing at the wrong target; the real problem — the thing that is causing investors to scramble for safe assets — is an economic depression brought on by (among other non-monetary causes) the deleveraging costs of an unsustainable debt bubble. Without addressing the problem of excess total debt — and quantitative easing aims to increase lending — the Fed is firing blanks."

 The Fed's primary problem is financing unfianceable infinite government growth at a point in time when rational thinkers would conclude that buying government debt would be a losing proposition.

 The FED could care less about increased lending unless of course it involves USG giveaway programs to women and minorities.

Thu, 08/09/2012 - 22:25 | Link to Comment tok1
tok1's picture

The FED wants everyone to pile into bonds.. QE is about making sure the Govt can fund the huge issunce and low levels.. why do people keep pretending its about risk assets.. They just follow cause the rates push people to alternatives. The Fed will stop buying when the defict is balanced and issuance is reduced so supply demand is more in line..  Thats the focus the rest is noise..

 

 

Thu, 08/09/2012 - 22:25 | Link to Comment earleflorida
earleflorida's picture

scary thought... but, it would telegraph to the feeble sheeple that we surely are in a depression and that war is eminent.

Would the pleasure be that of Monsignor O`bambi?

jmo

Ps. excellent analysis, laced with subtle thought provoking stuff :-))

Thu, 08/09/2012 - 23:50 | Link to Comment engineertheeconomy
engineertheeconomy's picture

What are you fucking retarded?

Thu, 08/09/2012 - 22:26 | Link to Comment Atomizer
Atomizer's picture

It won't happen. Just another propaganda piece for a wet dream thinker. When a government cannot meet a payroll, they'll dream up many revenue gimmicks to threaten the proles into a new tax compliance.

Thu, 08/09/2012 - 22:28 | Link to Comment boogerbently
boogerbently's picture

They could just "confiscate" the REST of the Soc. Sec. fund......in the national interest, of course.

Fri, 08/10/2012 - 10:27 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

What Soc. Sec. fund?

You think any of that money still exists?

HARHARHARHARHARHARHARHAR!

Thu, 08/09/2012 - 22:34 | Link to Comment roadsnbridges
roadsnbridges's picture

Can they find where my canoe capsized?  I sure can't.

Fri, 08/10/2012 - 01:50 | Link to Comment Deo vindice
Deo vindice's picture

If they were smart, they would first confiscate ALL canoes. That seems to be the greater problem amongst PM holders.

Thu, 08/09/2012 - 22:38 | Link to Comment GOLDTEETHSILVER...
GOLDTEETHSILVERFILLINGS's picture

I'll give you my Gold when you take it from my cold dead hands.

Thu, 08/09/2012 - 22:51 | Link to Comment tlnzz
tlnzz's picture

When they come for gold, we shall give them lead !

Thu, 08/09/2012 - 23:06 | Link to Comment tenpanhandle
tenpanhandle's picture

reverse alchemy that - turning gold into lead.  Personally, I would never buy gold; don't want gold; can't stand gold.  Anyone who says they saw me buy gold is a god damned liar.

Fri, 08/10/2012 - 07:04 | Link to Comment Karl von Bahnhof
Karl von Bahnhof's picture

What is this geology talk here? This site is about finance isnt?

/src

Thu, 08/09/2012 - 23:36 | Link to Comment El
El's picture

What gold and silver? I decided to save the government the trouble of redistributing my wealth, so I handed everything I didn't lose in the Lake Erie boating accident out to the homeless. <shrugs> Sorry, Mr. Gov't Man.

Thu, 08/09/2012 - 22:41 | Link to Comment GoldandSilverTrain
GoldandSilverTrain's picture

I think the Feds have a few more tricks up their sleeve before they'd try to forcefully confiscate gold. With that being said, I will definitely be guarding my gold & silver

https://miningstockvaluator.com/

Thu, 08/09/2012 - 22:48 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

Come for my gold and you will get my lead.

Thu, 08/09/2012 - 23:05 | Link to Comment A Lunatic
A Lunatic's picture

Rest easy, there isn't enough gold in the world to pacify those greedy bastards, and after all, it's the souls of your children they are really after............

Thu, 08/09/2012 - 23:16 | Link to Comment pain_and_soros
pain_and_soros's picture

The problem with the US isn't that its residents have too much gold...it is that they don't own enough of it to protect themselves when the rest of the world refuses to accept US dollars for oil, cars, & other much needed physical goods.

The US has lived off an exorbitant privilege for most of the past 40 years, running huge trade deficits with the rest of the world & then having their biggest suppliers, namely Japan & China, recycle those paper dollars that the US used to pay for their imports back into UST, which helped the US fund its military & government deficits.

The GFC exposed the US financial system as a blatant fraud, dumping triple A rated sub-prime mortgages on to naive global investors, then the US government turned around & bailed out the banks that made the bad bets (only to see them pay out billions in obscene bonuses), leaving the US with the printing press as their only source of funding their bloated government spending going forward.

I have a feeling those relatively few Americans who have the foresight to own actual physical gold seeing Bernanke's helicopters warming up won't be selling it back to their government for worthless dollars...tho the US government will be forced to trade  gold in return for oil & other import necessities, when the $US loses its world reserve status, sooner rather than later.

Thu, 08/09/2012 - 23:14 | Link to Comment FRBNYrCROOKS
FRBNYrCROOKS's picture

GOLD IS BEING CONCENTRATED IN HSBC VIA THE GLD ETF. The creation of the GLD ETF is a mechanism to get all the gold in one plce so they can take it and give you $42.22/ounce for it. Don't mess with paper gold (GLD).

Here is GLD holdings:

http://www.spdrgoldshares.com/

USD1,613.34

 

JPY126,816.20 HKD12,512.95

Mid prices, updated every minute

Total Gold in Trust Tonnes:1,254.94 Ounces:40,347,629.53 Value US$:65,130,597,376.18

 

 

 

The Treasury and FRBNY has about 8100 Tonnes:

The Status Report of U.S. Treasury-Owned Gold (Gold Report):

    https://www.fms.treas.gov/_images/bullet.gif);">
  • Reflects gold bullion and gold coins owned by the federal government
  • Summarizes the fine troy ounces and the book value of gold held by various facilities
  • Identifies the value of gold coins and bullion on display at Federal Reserve banks; coins and bullion in reserve at the Federal Reserve Bank of New York; and gold held by U.S. Mint facilities

The book value of gold is currently $42.2222 per troy ounce. The information used to compile this reporting is received from the U.S. Mint, Federal Reserve banks, and FMS.

Current Report: July 31, 2012

Contacts:

If you have questions about this report, please call (202) 874-9866.

https://www.fms.treas.gov/gold/index.html

Total - Treasury-Owned Gold

261,498,899.316 troy ounches

https://www.fms.treas.gov/gold/current.html

 

Thu, 08/09/2012 - 23:45 | Link to Comment engineertheeconomy
engineertheeconomy's picture

You stupid, stupid, stupid fucking Troll

Fri, 08/10/2012 - 11:10 | Link to Comment FRBNYrCROOKS
FRBNYrCROOKS's picture

 

I am just pointing out the obvious! I didn't publish either the GLD report not the Treasury inventory nor the Treasury valuation of gold. 

Why are you calling me a stupid troll? I didn't write the article! I was just pointing out factual information. Whether you believe it make no difference to me and doesn't change the fact that what I wrote is true. If you don't believe the FRBNY would try and confiscate your gold and give you the Treasury's fixed rate, $42.22/ounch then you might what to look for the stupid troll in the mirror?

I don't appreciate your insult.

 

Fri, 08/10/2012 - 00:59 | Link to Comment Nadaclue
Nadaclue's picture

Everything you have posted relies on the word of someone else. The .Gov is corrupt and their numbers cannot be taken as truth. All of the institutions of this country are corrupt. Nothing can be believed so citing a bunch of idiotic gov institutions is in fact, a waste of time. Nothing in this paradigm can be trusted as truth.

There is no one that has my trust, other than myself. Anyone who believes the facts, figures, accounting or numbers coming out of some entity with supposed expertise is being duped. The elite rely on the fact that the general public is ignorant, apathetic to their machinations and generally bored so they put out whatever garbage they feel will keep the sheeple satiated.

The same garbage comes from the pro metals folks who, post their opinions and "findings" as fact.

Everything is a business model, including you who prolifically pontificate that PM's must be purchased by all. The reason you do so are many but mostly, if more people buy PM's, the price will rise and you'll feel vindicated or can sell out at a higher price.

I fart at you.

I have some PM's but not a lot. Just enough to maybe start to recover if a new paradigm begins in fiat or, to use in an emergency. I will say when the collapse comes, I wouldn't sell you a potato for your gold eagle, if I didn't know how long I'd need my potato.

 

In the end, I guess I'm saying, your provided analysis is pretty as prose but that is all it is, the prose of others who have a business model.

My business model is to survive, I don't give two shits about money. I do not forgive, nor do I forget.

Fri, 08/10/2012 - 11:11 | Link to Comment FRBNYrCROOKS
FRBNYrCROOKS's picture

Why are you getting angry with me lady? I am not making this stuff up! I posted the links. Even has a phone number. I suggest you call them, The treasury, and insult them!!!

What I wrote, with supporting links, is a hell of a lot more credible than your rantings. 

ZH published the article and I was just pointing out the obvious. Why don't you direct your parinoid rants at the author?

Try backing up your rants with some facts.

Fri, 08/10/2012 - 01:08 | Link to Comment HungrySeagull
HungrySeagull's picture

You are a idiot.

1600 down to 42.00 gold will cause Silver to more than make it worth my while not to own any shit gold.

Fri, 08/10/2012 - 10:58 | Link to Comment FRBNYrCROOKS
FRBNYrCROOKS's picture

I am just pointing out the obvious! I didn't publish either the GLD report nor the Treasury inventory nor the Treasury valuation of gold. 

Why are you calling me an idiot? I didn't write the article I was just pointoing out factual information. Whether you believe it makes no difference and doesn't change the fact that what I wrote is true. If you don't believe the FRBNY would try and confiscate your gold and give you the Treasury's fixed rate, $42.22/ounch, then perhaps you might what to look for the idiot in the mirror?

I don't appreciate your insult.

Fri, 08/10/2012 - 19:32 | Link to Comment XitSam
XitSam's picture

I had not considered that they would pay $42.22/oz, personally I don't think there will be confiscaton. In 1933 the price was fixed at $20.xx. If not $42, then what price would they pay? Spot? Doubtful. If they announce a price, then there are probably arbitrage plays. Interesting.

Fri, 08/10/2012 - 03:22 | Link to Comment goldfish1
goldfish1's picture

ounches?

They own ounches. lol

 

Next time I want to sell some property, I'll have them trade in their fiat for gold coin and I'll book the sale at $42.2222 per troy ounce.

Thu, 08/09/2012 - 23:14 | Link to Comment reader2010
reader2010's picture

Unlimited capital from the Fed to patch up the gigantic credit Black Hole left behind by the 2008 bust? Just do the math.  The problem is that even so Bernanke and other CBs still don't have the capacity to undo what the financial WMD's deflationary forces. But, the criminals want so time to transfer all their bad bets to every middle class member worldwide. This shit ain't gonna end anytime soon. 

Thu, 08/09/2012 - 23:17 | Link to Comment Joebloinvestor
Joebloinvestor's picture

The next great Ponzi scheme will be a gold backed currency developed by China and Russia.

 

Thu, 08/09/2012 - 23:22 | Link to Comment reader2010
reader2010's picture

based on Gold? No, it will be based on Blue Gold instead. 

Thu, 08/09/2012 - 23:21 | Link to Comment FRBNYrCROOKS
FRBNYrCROOKS's picture

It would be easy to confiscate gold when there is hyper-inflation and the Fed. notes aren't accepted for payment. People will have to pay with gold. They will issue new script (world dollar) when all the gold is absorbed by the fed. through exchange.

Fri, 08/10/2012 - 03:24 | Link to Comment goldfish1
goldfish1's picture

what does the fed have that people will pay their gold for?

Fri, 08/10/2012 - 09:15 | Link to Comment FRBNYrCROOKS
FRBNYrCROOKS's picture

new world dollars. Who wants to carry arouind gold? I don't know if you noticed but, most banks are part of the Federal Reserve System. When you deal with a bank you deal with the Fed.

Fri, 08/10/2012 - 19:37 | Link to Comment XitSam
XitSam's picture

Are you saying the "new world dollars" would be gold backed or just another fiat currency?

Thu, 08/09/2012 - 23:27 | Link to Comment ChacoFunFact
ChacoFunFact's picture

who says the fed wants to take away safe assets?  make no mistake, they are accomplishing exactly what they want.

Thu, 08/09/2012 - 23:28 | Link to Comment q99x2
q99x2's picture

Thems fightin words.

Thu, 08/09/2012 - 23:31 | Link to Comment JohnG
JohnG's picture

Long black markets.

Thu, 08/09/2012 - 23:31 | Link to Comment jonjon831983
jonjon831983's picture

"Gold mobilization not to hit majority of Vietnamese : SBV"

http://www.bullionstreet.com/news/gold-mobilization-not-to-hit-majority-of-vietnamese-sbv/2507

 

For Vietnam, it is not explicit confiscation - it is regulation and control of gold.

Thu, 08/09/2012 - 23:44 | Link to Comment blindman
blindman's picture

boating incidents aside what does
offshore, tax haven, money do with itself
for fun and profit?
confiscation is a domestic thing, no?
where does international wealth go to
die?
the seas and oceans must figure in here
in some significant way.
peacsees.
2008-03-10 06.15.51 egyptian exhibit, louvre, feb 2008
http://www.youtube.com/watch?v=MnTQvYW71S0&list=UULwXLS-KHDAABP02xEzplsg...
.
stovepipe
http://www.youtube.com/watch?v=0KK9loxy2oY&feature=BFa&list=UULwXLS-KHDA...
.

Fri, 08/10/2012 - 00:23 | Link to Comment Harrison
Harrison's picture

Last time, they were able to get away with it because back then, the dollar was "backed" by gold even if people could no longer hold the gold itself. By forcing banks to open deposit boxes and confiscating physical gold dollars in exchange for paper dollars, people couldn't really bitch and start shooting over the confiscation -- their neighbors would have turned on them for being irrational and dangerous.

Nowadays, the feds have dropped the pretense that the dollar is in any way tied to gold. They have no fig-leaf for confiscation, any more than they would for confiscating farmers' corn and soybeans, or peoples' cars, or any other piece of property.

Moreover, there just isn't that much physical gold out there any more. 401(k) and IRA accounts are where the money is today. We've already seen trial balloons floated (mostly in 2009/2010) about forcibly converting these accounts into Treasuries for peoples' retirement safety.

And, frankly, if the government tries to confiscate certain types of valuable physical property on the grounds that people can't be allowed to own it any more, I don't doubt that the crazy old gold-bug geezers will start shooting the agents who go out to steal it from them.

Fri, 08/10/2012 - 04:40 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

 

I agree they do want those 401's also they want to figure out a way to not pay back all the money they borrowed from Social Security.  

 

Anyway for what it's worth for those who are Gold Bugs Game Changer for GOLD

snippet

"Last week, the FDIC and the Fed issued a "Notice of Proposed Rulemaking" to adopt the Basel III capital requirements. If this new rule is adopted as proposed, gold would shift to a zero-risk weighting for purposes of calculating bank capital by the year 2015."

in full

 

http://americankabuki.blogspot.com.es/2012/08/fdic-and-fed-issue-notice-of-proposed.html

Fri, 08/10/2012 - 00:45 | Link to Comment Solon the Destroyer
Solon the Destroyer's picture

Okay, I caught her name, but who is she that wrote this idiotic sentence:

Fed purchases are the equivalent of hoarding the system’s supply of safe assets on the Fed’s own balance sheet, and in so doing preventing private investors — especially money market investors – from investing in the assets on favourable terms...

My god what a travesty of thought.

Does this person even understand the idea of "safe"... or of buyer of last resort, and how that function is so essential to keeping the adjective "safe" in public use.

My god, Mr. Aziz.

Fri, 08/10/2012 - 00:48 | Link to Comment ZenOps
ZenOps's picture

Gold 1933, Silver 1964.  Demonitization for the good of the few.

More to the point, In Canada on Feb 4 2013 is the officially stated date that banks will no longer circulate the Canadian penny.  The penny is really the only true copper coin Canada ever made (nickels, dimes and quarters are all either pure nickel or iron)

Copper and Nickel 2012,  Deomonitization for the good of the monarchy, it is effectively copper confiscation when you no longer circulate it.

I imagine sometime next year the US will debase the nickel to a plugged nickel of some sort, but will probably keep circulating zinc pennies.

Fri, 08/10/2012 - 06:43 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

My father used to say, "don't take any wooden nickels."  I thought it was silly.  Then.

Fri, 08/10/2012 - 00:53 | Link to Comment hannah
hannah's picture

EVERY IDIOT THAT BRAGGED ABOUT BUYING GOLD OR NEGATIVE RATED MY GOLD COMMENTS HAS A UNIQUE IP ADDRESS .....hahaha and the gov has a record of all of it. knock knock, whose there. mr gold confiscation man.

 

oh and remember those 1099k forms you had filled out with your info when you bought gold this year......this time the gov knows who has the gold baby.....!

Fri, 08/10/2012 - 01:10 | Link to Comment HungrySeagull
HungrySeagull's picture

What forms?

Aint none silly man.

 

And as I can buy a little gold here and there from my vendor I don't expect to trigger any form reporting.

Fri, 08/10/2012 - 01:45 | Link to Comment hannah
hannah's picture

what dollar amount .....?! you tell me what the trigger amount is smart man....

Fri, 08/10/2012 - 02:25 | Link to Comment JohnKozac
JohnKozac's picture

Congress repeals burdensome 1099 requirement in Obamacare


http://www.naturalnews.com/031990_1099_Obamacare.html

 

the law not only applied to PM purchases, but to any transactions (goods and/or services) that amounted to over $400 in one calendar year. That means every time you bought a washing machine, visited the doctor, bought an iPad....etc, any transaction or series of transactions that > $400 pa, they would have to take all your info ---name, address, SS#, etc and report on the 1099. The burden on small businesses would be deafening and an overwhelming bipartisan Congressional vote (wisely) repealed that portion of the health care law.

In any case, I don't think they would go after the goldbugs. As someone said above, they are small fries compared to the Trillions of easy pickings in 401(k) plans that are already within broker's/trustee's paws. One flick of the pen and "Poof!" there goes your pension plan !

 

Best plan is to keep good records and consult your CPA or whomever your tax advisor is since the laws are constantly changing in this area.

Fri, 08/10/2012 - 02:15 | Link to Comment eaglefalcon
eaglefalcon's picture

You need to fill out a 1099 form when you SELL gold, not when you buy gold. I went to my coin dealer and paid cash and there is no record whatsoever.

Fri, 08/10/2012 - 05:43 | Link to Comment Just Observing
Just Observing's picture

1)  The only "unique IP address" anyone is getting on me is somebody else's.  I'm piggybacking on somebody else's connection when I connect.  Go see them about it !  And anyone using a WiFi spot is in the same boat.....try tracking a laptop that stops in at MickeyD's once in a while.

2)  There is no "1099K" when you buy gold.....you simply buy it, either across the counter or 100K send to Tulving or APMEX.  There ARE reporting requirements when you SELL in certain amounts, but those can also be worked around.

3) You are clearly full of shit. 

The only question is whether that is a result of birth, public education, or your side job as a govt agent in the disinformation department.

Fri, 08/10/2012 - 12:40 | Link to Comment hannah
hannah's picture

when you buy gold someone is 'selling' it you fool.......

it doesnt matter what ip address you use as your esn is still captured and retained for years. you sheeple are really stupid. all computers and phones and tablets have a unique serial numbr and all th code for accessing networks records your serial number you stupid fuck....!

Fri, 08/10/2012 - 01:44 | Link to Comment dunce
dunce's picture

Part of obama care was a tax or fee on gold transactions, when you pay it ,you are registering the amount of gold you own with the govt and what your name and address are so when they decide to confiscate the only real wealth left, they know who has it and how much they have. If you are buying gold, it might be wise to make cash unreported purchases. They will call it a fair deal when they give you silly pieces of paper for your gold. They did it before and they seem to be planning on doing it again.

Fri, 08/10/2012 - 02:01 | Link to Comment JohnKozac
JohnKozac's picture

50% of the Russian economy in the "underground" economy. More then that for Greece now; perhaps 80%. Italy...who knows?  In the USA it's much smaller but growing I read somewhere.

Fri, 08/10/2012 - 02:28 | Link to Comment Satan
Satan's picture

I'm no economist but even I can see that the day private ownership of gold becomes illegal the black-market price of gold will go parabolic.

Fri, 08/10/2012 - 03:18 | Link to Comment Jafo
Jafo's picture

We will soon see just how much inagination the Central Banks and their respective Treasury Departments have. Any order to turn over your gold is going to expose the government as both morally bankrupt as well as fiscally bankrupt.  It just is not an option if they want to stay in power (without a coup de tete at any rate).  If the ballot box does not cause the downfall of the government the ensuing black market in gold most likely will bring about the downfall of the government.

If the Central Bank buys gold at an arbitrarily high price (one high enough to induce gold hoarders to sell all or part of their hoard) the Treasury can make it tax free if invested into the economy of the nation.  People will be induced by tax advantages to put the money to work in buying forclosed real estate from the banks or into local manufacturing enterprises that employ local labour or actually export finished goods (and pay real dividends).  The permutations are endless if there would be just several politicians with integrity and a bit of imagination.

Of course, politicians with integrity and imagination are about as real as the Tooth Fairy - but it is a nice thought.

Fri, 08/10/2012 - 04:45 | Link to Comment magpie
magpie's picture

Assuming that some people are not parroting the deflation R US meme, it is more likely that gold will be pegged to an unrealistically low price (say $ 1000) to disrupt the market.

Fri, 08/10/2012 - 09:53 | Link to Comment el-greco
el-greco's picture

Asia will send them christmas cards, they might already have put them on their list this year.

Fri, 08/10/2012 - 08:31 | Link to Comment Getting Old Sucks
Getting Old Sucks's picture

They don't have to confiscate it.  All they need is to impose a 99% capital gains tax on the sale of it.  They won't care how much it goes up on the free market.  The higher it goes, the more they get in taxes.  That keeps it off the market just as if they took it all and locked it up.  Of course they'll be a lot of under the table trading going on. 

JMO right now, maybe not tomorrow. 

Fri, 08/10/2012 - 09:09 | Link to Comment HellFish
HellFish's picture

They can only tax the sale if you report it.

Fri, 08/10/2012 - 09:51 | Link to Comment el-greco
el-greco's picture

Black markets are nothing new.

Sat, 08/11/2012 - 02:00 | Link to Comment Jafo
Jafo's picture

The market for illegal drugs will be the new business model.

It will be interesting to see how Wall Street deals with the Jamaican and Mexical drug lords as they muscle in on their territory.

Fri, 08/10/2012 - 08:39 | Link to Comment TrumpXVI
TrumpXVI's picture

Internet trolldom is the final refuge of the losers who weren't sufficiently prescient to take a seat on the gold train when it left the station.

Fri, 08/10/2012 - 12:47 | Link to Comment zrussell
zrussell's picture

The $65M investment in airport scanners are being set up in preparation for an expected exodus of citizens that will be trying to escape the country. You will still be able to leave, minus all the fiat and PM you may be carrying.

Do NOT follow this link or you will be banned from the site!