Insider

How High and When to Sell?

Wednesday, March 28, 2012, 12:24 PM
Enroll NowFor enrolled members only. Enroll or Sign in to read the full article.

How High and When to Sell?

by Chris Martenson
Wednesday, March 28, 2012

Executive Summary

  • Confiscation and/or excessive taxation of gold seem low risks at the moment
  • Our price projections for gold
  • How to know when to sell your gold
  • What to exchange your gold for

Part I: Gold is Manipulated (But That's Okay)

If you have not yet read Part I, available free to all readers, please click here to read it first.

Part II: How High and When to Sell?

Confiscation and/or Taxation

Here is a quick aside on the prospect of confiscation and/or additional and punitive taxation of gold (and silver) because it comes up often. I think neither is especially likely at this point.

Confiscation will become a concern for me if:

  • Gold is ever remonetized. Should gold become the international choice of cross-border balancing, as I expect it might some day, the chance of it being ‘nationalized’ will skyrocket. However, as was true in the 1930s in the US, I fully expect that holders of gold will be compensated for their holdings. 
  • Gold is demanded for oil. Should a current oil-exporting nation demand that it be paid in gold instead of cash, I would expect gold to be nationalized.
  • Gold crosses $5,000/ounce. Once gold becomes a significant store of value compared to other sources such as money market funds or 401k plans, it might become a target of choice for revenue-strapped governments. As it is right now -- on a relative basis vs. the equity or bond markets -- the size of the entire gold market is a tiny, puny store of value, and therefore not really worth the government's effort.

Should any of these things change, I believe we will have weeks, if not many months, of forewarning of confiscation or additional taxation -- and my alert service will have you prepared well in advance.

There will be rumblings and discussions and other warning signs to forewarn that a change is coming, if one ever does. For now it seems rather unlikely that either confiscation or burdensome taxation is a near and present concern to hold.

Enroll Now
Or Sign In with your enrolled account.

Related content

23 Comments on How High and When to Sell?

Enroll now or Sign In to read all member comments.