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  • Fri, Dec 14, 2012 - 02:28am



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[quote]Several analysts and respected members of the gold community have stated that the confiscation of gold is unlikely because the conditions that precipitated it in 1933 don’t exist anymore. We agree wholeheartedly with that view. But we feel that the confiscation of gold is extremely likely for very different reasons.

For the last 40+ year, the world has used un-backed paper money and attempted to discredit gold. This system is entirely reliant on the confidence people have in governments and the central banks that issue money the money (at will). Over the 40 years of this experiment, gold has gone from $35 to $1,715, a rise of nearly 50 times. Since 2007 we’ve seen banking crises across the developed world leaving bankers borrowing money from central banks and lending it back to them, rather than lend it out into the general economies or in some cases to each other…

…With gold being of a value far in excess of its price in the monetary system –as seen in its use as collateral via the Bank of International Settlements currency/gold swaps of the last few years— and with gold soon to become a level 1 asset on bank balance sheets, the demand for physical gold from the banking system as well as from emerging world central banks is set to rise tremendously and soon. The Basel III discussions allow for this to happen any time between 1 January 2013 and 1 January 2015. If gold is re-rated to a level I asset, as is proposed by Basel III (U.S. bankers are in on the discussions) then there is not enough readily-available gold to provide both the central banks of the world and the banking system with sufficient for gold to play this role.

That’s why your gold may be confiscated.[/quote]

The author of this is Julian Phillips who posts regularly on Financial Sense.  I don't know how much credence to give his dire warning, but it is notable that he is selling a service – holding your gold in Zurich in a structure that is supposedly safe from US attempts to confiscate.  Plus, I believe I read recently that Basel III is not making gold a level 1 asset, but the assertion that it is appears to be a largely internet meme.

Also, as I pointed out in another post on another thread  thread, two people with considerable PM experience have recently suggested getting PMs out of IRAs (Bob Fitzwilson and Don Stott of Colorado Gold).  No one responded at the time, but since this is a gold group, perhaps both topics could raise some interest.  I know I'm interested.


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