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  • The Gold Confiscation Scam

    Posted on September 22nd, 2010 William No comments

    If you've been considering investing in gold, and have been doing your research, you've likely run across a number of warnings from dishonest dealers that you should buy collectible gold coins rather than bullion, as the collectible coins are safe from government confiscation; they then cite executive order 6102, issued by Franklin Roosevelt in 1933.

    There are a few problems with the story. The first is that, contrary to the claims you'll hear, the federal government never confiscated gold; while citizens were ordered to surrender gold, they were fairly compensated. Additionally, there was only one prosecution of someone failing to comply with the order, and it was unsuccessful.

    Furthermore, the purpose of the executive order was to get people to stop hoarding gold at a time when America was still on the gold standard; Roosevelt was attempting to prevent a run on the banks. Accordingly, there's no particular reason to think the government would attempt to confiscate anyone's gold, which is why the American Numismatic Association describes this as a non-issue.

    Related posts:

    1. Should You Buy Gold Coins?
    2. Is Gold A Good Investment?

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