Survival Planning - Gold Confiscation Possible?

UrbanSurvivalSkills.com received this analysis from one of our financial advisors on what he thinks is likely to happen this calendar year:

There is much talk on the internet about possible Gold confiscation by the U.S. Government. A series of factors will influence this: the devaluation of the U.S. Dollar due to excessive printing of this fiat currency in a misguided attempt to increase the monetary supply and supposedly the economy; the ever increasing debt of the U.S. Government; the International Monetary Fund (IMF), France and China (among other countries) working to remove the U.S. Dollar as the World’s currency; and, the fact that oil commerce today is accomplished using the U.S. Dollar as the mean trading unit. Once the Dollar is not longer the World’s reserve currency, the U.S. will not be able to purchase crude oil at the prices we are seeing today.

Other factors may be what the new world’s reserved currency will look like. Will it be the Chinese Yuan or a conglomeration or mix of many different currencies? Will the new world’s reserve currency be forced to hold physical assets, such as gold, in a sort of escrow to ensure it’s credibility and ability to hold value? Will any new U.S. currency be linked to gold?

There is good theory out there that predicts that once gold hit’s a certain value per ounce, say $2,000, then the U.S. Government will move quick to avert full fledged slide of the U.S. dollar by requiring an exchange of privately held gold for U.S. currency, albeit at a rate they determine, Enforcement measures have already been put in place with Obamacare’s new 1099 form requirements which mandate gold/silver vendors to place all precious metals transactions over $600 on an 1099 form.

Additionally, confiscation implementation will probably also come from confiscatory taxes. High taxes, 80% to 90% on any profit from precious metals will discourage investment and holding of PM’s.

So what am I saying?

One – Inflation is going to hit and be severe; all commodities will increase in price and decrease in availability.

Two – Congress will be half stepping to avert forfeiture of the U.S. gov’t on the debt and the U.S. Dollar from being removed as the world’s reserve currency.

Three – Gas will hit $5 without the U.S. Dollar being removed as the world’s currency; $7 a gallon is the IMF and China get their way.

Four – Gold will hit near $2,000 an ounce and the U.S. Government will be forced to secure or confiscate Gold to avert a total disaster and will set the new gold price, relative to the existing U.S. Dollar or a new currency, around the $250 per ounce mark.

Five –Ensure you have silver is your survival planning; silver is much more harder to confiscate however see the part of 1099’s!

Six – If you have precious metal assets you should think about not having them if someone from the Government comes to your door.

This is the Counter Confiscation Argument:



What UrbanMan thinks: I think Gold and Silver will continue to climb. I think the U.S. Dollar will continue to plummet and prices for commodities will rise, particular fuel - this will skyrocket. When this gets to the tipping point, the economy will tank. The USG will not confiscate Gold. They may heavily tax gold and bar future private ownership, but will not confiscate gold. The USG may interview people, reference to tax code from 1099's on Gold and other PM acquisitions on abeyance in reporting. But don't look for confiscation. Even then, be prepared for all threats.