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August
22
2016

What the Next Gold Confiscation Will Look Like…and How to Protect Yourself
Nick Giambruno

Editor’s Note: Today we have something special to share with you. In place of our usual market commentary, we have a recent essay from Nick Giambruno, editor of International Man.

In this essay, Nick talks about the time the U.S. government stole gold from everyday Americans, and why something similar could happen today. The good news is that you can protect yourself. Nick shares a simple, yet effective way to keep your gold out of the government’s hands.

We also have an incredible offer on gold to tell you about at the end of this essay. If you’re thinking of buying gold anytime soon, you need to read this first…

On April 5, 1933, under the pretext of a national emergency, President Franklin D. Roosevelt issued Executive Order 6102, making it illegal for U.S. citizens to own gold.

The decree forced Americans to sell their gold at an artificially low “official price.” If they refused, the government could hit them with stiff penalties: a $10,000 fine (equivalent to $180,000 today) and/or up to 10 years in prison.

The government blatantly stole wealth from the American people.

Many worry the U.S. government might confiscate gold again if it becomes desperate enough. I don’t think those fears are unfounded. The U.S. government’s abysmal financial situation is only getting worse.

But would it really do a 1933-style grab again?

I don’t think it will. However, there is another growing threat to your gold.

More Likely Than Outright Confiscation

Today, only a tiny fraction of the U.S. population owns gold. Heck, I’d bet most Americans have never even seen a gold coin, much less appreciate its value.

This wasn’t the case in 1933, when the U.S. was still on a variation of the gold standard. That’s why the government probably won’t repeat the 1933 rip-off. It’s simply not worth the effort.

If the government wants to confiscate wealth, it’s far more likely to go for the easy option… steadily debasing the currency by printing money. It’s a stealthy way to confiscate from savers.

That doesn’t mean gold owners are in the clear.

I think the government will try a new scam: taxing windfall profits on gold. This would make it much easier for the government to accomplish something similar to its 1933 heist.

There’s precedence for it, too. In 1980, Congress passed the Crude Oil Windfall Profit Tax Act, which taxed up to 70% of “windfall profits” of domestic oil producers.

What the heck is a windfall profit anyway?

As far as I can tell, it’s whatever politicians decide it is. It’s completely arbitrary. There are no objective measures to define it.

In short, a windfall profit is simply a profit politicians don’t like. The whole concept is a scam—a word trick to camouflage and sanitize legalized theft.

If the price of gold explodes, I wouldn’t be surprised if Congress passes a Fair Share Gold Windfall Profit Tax Act levying a tax of 80%, 90%, or more on gold profits.

Fortunately, there are some practical steps you can take to protect yourself from this form of politically motivated expropriation.

What to Do

One way you can avoid a windfall-profits tax on gold is to renounce your U.S. citizenship. But that’s a drastic step. It’s just not realistic for most people.

Thankfully, there’s a far more practical option. You can do it from your living room. And you don’t have to turn in your passport.

The solution is to own gold in a Roth IRA.

A Roth IRA is a tax-free zone. You fund it with after-tax savings, and any future capital gains or income derived from investments in your Roth IRA are not taxable.

While you can never be 100% sure what the U.S. government will do, it’s far less likely a future tax increase, even a windfall-profits tax, would affect investments in a Roth IRA.

A Roth IRA is the most practical way to protect yourself from the most likely form of future gold confiscation—a windfall-profits tax. It makes you a hard target.

Editor’s Note: Speaking of gold, E.B. Tucker, editor of The Casey Report, recently discovered a “loophole” in the gold market.

In short, E.B. found some of the best prices on physical gold we’ve ever seen. Most mints, gold dealers, and online merchants can’t come close to these prices.

This special offer could last another year or just a couple more months. There’s no way to know. That’s why we encourage you to take advantage of it while you still can. Click here to learn more.

 

"The problem — your problem — is that any country can turn into a 1970s Rhodesia. Or a Russia in the ‘20s, Germany in the ‘30s, China in the ‘40s, Cuba in the ‘50s, the Congo in the ‘60s, Vietnam in the ‘70s, Afghanistan in the ‘80s, Bosnia in the ‘90s. These are just examples off the top of my head. Only a fool tries to survive by acting like a vegetable, staying rooted to one place, when the political and economic climate changes for the worse." - Doug Casey

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