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Confiscation of Gold - Then What? Part 6

By: Julian D. W. Phillips | Wednesday, January 16, 2013
Special Report

Readers may not agree with our conclusions on the confiscation of gold, but we continue to emphasize this reality. If we are wrong you will still own your gold; if we are right and you have not taken the right steps to guard against confiscation and the personal dangers to you individually, then you will lose your gold if not suffer the penalties the "Gold Confiscation Order" brings with it.

While the number of questions about whether gold will be confiscated or not remains one of the most asked questions in the Gold World, it is one that evokes the most emotions.

However, there are many figures of professional status that have not done justice to the question, relying on gut feel and their reputation for their opinions to be accepted. But this is a matter that requires a sober understanding, not only of gold as a monetary metal, but also of how governments ensure their will is done on the people they govern. Fortunately, there are experiences in the not so distant past that confirm what the authorities do when their will is not done:

We contacted the author, Mr. John Myers in Calgary, who confirmed that this was a true story of his father. We examine the key features of this lower down.

We have also added this link to information on how the Canadian Authorities are currently cooperating with the U.S. money Authorities on handling U.S. investors in Canada to show Canada is not the safe haven many take it to be.

In addition, our own research into gold as a monetary metal is reinforced by some of the best gold analysis in the world. Namely the World Gold Council, who last week issued a report on the rising role of gold in the future.

This will be looked at in more depth in the next part of the series.

Invitation to Gold Dealers & Investors

We invite all gold dealers and investors, no matter where they are in the world, to work with us and not lose their gold, clients and their businesses in the event of a Gold Confiscation Order. We suggest you work with us to protect your clients and keep your businesses going even then. We will structure a way that you and your clients can continue to own gold without culpability, in the event of such an order. After all, if such an Order to confiscate gold is given, then you may find you are not allowed to continue.

But just as before the last World War, this must be done before the war starts!

Please note, we do not advocate you sell your gold!

In fact we advocate you buy more for the day when it really rises in price and makes the last 8 years of price rises pale into insignificance! Just as in the last [1933/35] confiscation in the U.S., the greatest rise in the price of gold came after the gold was confiscated. We believe that the price rises following future confiscations will be far greater and that's when you want to be holding gold legally and accessibly.

Beware Safe-havens other than Switzerland

Many feel that if they secretly hold gold they will be out of reach. The experience of the author is different.

Experience shows that ownership visibility is not a danger if your gold is held properly and legally. As the experience of C.V. Myers in Canada shows, it is possible that all safe-havens will release the names of their people who hold gold outside the country in their name if they deem it fit. As we said in the last part of this series, allies of your country may well cooperate with them as was the case here of Canada working with the U.S. to penalize gold owners.

But that is totally different to returning the gold to the confiscating authority. Where gold is held on behalf of the investor and its ownership not transferable, then the safe-haven of Switzerland remains the only place we believe will ensure that that gold remains inside their borders and in your beneficial ownership. Let's be clear, we have no doubt whatsoever that Switzerland would deem any, 'after-the-event' penalties that the IRS attempted to impose on a Swiss company, in Switzerland, would not be upheld by the Swiss, who have a 300-year history of guarding foreigners assets (legally gained) to the extent that such services remain the core of their economy today.As you can see in the case of C.V. Myers Canada worked with the U.S. on the confiscation of gold. Please read of his experience here.

But be clear on one historic fact: Exchange and Capital Controls cannot be enforced on other Jurisdictions.

So we strongly suggest that you readers take this subject very seriously and act prudently to guard your wealth ahead of the problem.

In the following part of this series we look at an important report just released that reinforces our view that Gold will move back to a pivotal position in the global monetary system.

Experience Counts

There's a danger that investors in gold take the same view as the man who fell off a fifty-story building, who when he passed the twelfth floor was heard to say, "So far, so good" When we only have a forecast and can't actually see the storm we take a while to believe it's on the way.

The author has a 41 year history of being active in countries where exchange and capital controls have been part of daily life and has helped many to legally protect their wealth. It has been tragic to see men who have worked for their entire lives to amass a fortune only to see it evaporate at the hands of rapacious politicians, concerned only with national interests and not those of its citizens. Most of these people who lost so much could have retained their wealth if only they had acted prudently, moved out of their comfort zone and structured their wealth properly. An assessment of the risk-reward ratio of doing so and not doing so guides the way on this. We note that our critics, particularly those inside the U.S., have little-to-no experience of such Controls or Confiscation Orders. Be careful!

Are we guilty of paranoia? We think not. We do have a tendency to see far enough into the future to give you time to act prudently.

We watch the visible signs of movement towards a particular situation.

A small one of these that we see now is:

Proposed - Illinois Precious Metal Purchasing Act

Creates the Precious Metal Purchasing Act. Provides that a person who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller. Provides that a person who is in the business of purchasing precious metal shall not pay for the precious metal in cash and shall >record the method of payment. Requires the purchaser to keep a record of the sale for one year or, if the purchase amount is over $500, for 5 years. Provides that a person who violates the Act is guilty of a petty offense and subject to a fine not exceeding $500. Provides that the Attorney General may inspect records, investigate an alleged violation, and take action to collect civil penalties.


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Author: Julian D. W. Phillips

Julian D. W. Phillips
Gold Forecaster

Julian D. W. Phillips

"Global Watch: The Gold Forecaster" covers the global gold market. It specializes in Central Bank Sales and details, the Indian Bullion market [supported by a leading Indian Bullion professional], the South African markets [+ Gold shares shares] plus the currencies of gold producers [ Euro, U.S. $, Yen, C$, A$, and the South African Rand]. Its aim is to synthesise all the influential gold price factors across the globe, so as to truly understand the global reasons behind the gold price.

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