GOVERNMENT CONFISCATION OF GOLD
The 1933 Executive Order
Informed estimates suggest that more than 90% of all U.S. gold coins were officially melted by the government in the 1930s.
In 1928 and 1929 the stock market skyrocketed into an emotional frenzy. In 1929, the frenzy stopped, stocks crashed and the Great Depression unfolded.
By 1933, the demoralized nation looked to Washington, D.C. for salvation. President Franklin D. Roosevelt, a cousin of Teddy Roosevelt´┐Żs, confiscated all circulating gold coins owned by Americans. Then FDR took the nation off the Gold Standard.
Americans, with one large exception, were required to turn in their gold coins at face value or face large fines and/or jail sentences. As soon as the government had confiscated all the gold, it raised its value by nearly 75%.
- Q. What group of Americans was exempted from the government´┐Żs gold coin confiscation?
- A. Coin collectors.
- Q. What happened to the huge number of gold coins the government confiscated?
- A. They were melted into gold bricks and stored in Fort Knox, Kentucky.
- Q. Who benefited from this enforced confiscation and 75% revaluation?
- A. The primary beneficiary was the government. The second largest beneficiary: collectors of gold coins.
During the difficult 1930s, collectors of gold coins actually profited from the confiscation, melting and revaluation in two very valuable ways:
╩╩╩╩ 1.╩ from the nearly 75% increase in the gold bullion value of their coins╩(a $20 gold coin contains nearly 1 full ounce of pure gold!); and
╩╩╩╩ 2.╩ from the massive official melting of the confiscated gold coins.╩ This╩melting made the limited number of surviving coins in collections╩MUCH RARER and MUCH MORE VALUABLE!
The confiscation, melting and nearly 75% revaluation helped FDR and the Congress inflate the U.S. economy during the mid- and late-1930s. More importantly, it led to a loss of a number of important freedoms for the American people.
Americans lost their freedom from...
Most importantly, American citizens lost the substantial benefits of having a dollar that was as good as gold.
- ... long term inflation
- ... expanding government
- ... gold confiscation (except collectors)
- ... government intrusion into their private financial matters.
Owning gold coins has protected savers from inflation, devaluation and intrusive government for thousands of years. The events of the 1930s (and the decades that followed) prove how important owning scarce and desirable gold coins really is!
For protection and for potential profits, wise Americans - including many of the nation´┐Żs leading families - keep a portion of their long term savings in the form of scarce and desirable coins.
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