Will governments confiscate gold?

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Dirk Campbell's picture
Dirk Campbell
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Will governments confiscate gold?

 As an occasional visitor to the forum I always have to apologise for asking a question that has almost certainly been answered already, but I just don't have time to read through all the relevant posts.

My question is really for UK gold bugs. Do you think the UK government will tax gold, like the 20% VAT already on silver, and if so when? Can they confiscate gold? I believe this happened in some countries in the Great Depression.

UK interest rates are so low I'm planning to leverage in order to buy a lot of gold, as all experts I've read are confident gold will carry on rising for the next year at least.

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Johnny Oxygen
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Hi Dirk Here is one of many

Hi Dirk

Here is one of many gold confiscation threads.

http://www.peakprosperity.com/forum/lets-talk-about-gold-confiscation-ag...

Alot of what you are asking is on this thread.

ao's picture
ao
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Dirk Campbell wrote: UK
Dirk Campbell wrote:

UK interest rates are so low I'm planning to leverage in order to buy a lot of gold, as all experts I've read are confident gold will carry on rising for the next year at least.

Dirk,

I would never, ever, ever consider leveraging to buy gold but YMMV.

I'm curious.  What experts are you citing that express this confidence? 

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agitating prop
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There are huge piles of cash

There are huge piles of cash out there that could do some major harm, if govts. confiscate gold. Up until recently active suppression of price through different schemes, served to steer investors more towards agricultural commodities

No govt is going to engage in policies that  cause necessities to rise more than is necessary, right now.  If investors must hoard something, in this economic atmosphere, it SHOULD be gold and silver; not food and fertilizer through commodities market.  So gold will likely be allowed to seek it's level. I doubt UK pols want an Arab spring in their own country, engendered by unnecessary speculation in food markets, on top of inflation generated by weak currency.   

The recent  British riots are a mere dress rehearsal for what's ahead if govts and central banks get it substantially wrong.

Plus, it's now become such a no-brainer that pm's are the place to park cash, most of the pols and bankers are probably hoarding gold and silver themselves. Highly unlikely they'd confiscate their own stash for queen and country!

Dirk Campbell's picture
Dirk Campbell
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ao wrote:What experts are
ao wrote:

What experts are you citing that express this confidence?

The confidence that gold is going to rise over the next year at least? Chris Martenson, Felix Zulauf (Zulauf asset management), Deutsche Bank. Merryn Somerset Webb (Money Week), Tim Price (PPF group), Patrick Armstrong (Armstrong Investments). Those are just the ones to hand.

Though everyone is also saying 'get out of debt' the consensus is that the interest rate won't rise in the UK for the next year (it's currently 0.5% per annum). As gold is rising about 1% per day it seems like a sensible strategy to leverage, at least over the short term.

Or do you have expert opinion that gold will fall?

ao's picture
ao
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Dirk Campbell wrote: ao
Dirk Campbell wrote:
ao wrote:

What experts are you citing that express this confidence?

The confidence that gold is going to rise over the next year at least? Chris Martenson, Felix Zulauf (Zulauf asset management), Deutsche Bank. Merryn Somerset Webb (Money Week), Tim Price (PPF group), Patrick Armstrong (Armstrong Investments). Those are just the ones to hand.

Though everyone is also saying 'get out of debt' the consensus is that the interest rate won't rise in the UK for the next year (it's currently 0.5% per annum). As gold is rising about 1% per day it seems like a sensible strategy to leverage, at least over the short term.

Or do you have expert opinion that gold will fall?

Today is a good reason for why you don't want to leverage in the short term.  Informal sentiment indicators such as your average small investor wanting to leverage gold because it seems like it's a sure thing and because all the experts seem to be saying that is another reason.

Dirk Campbell's picture
Dirk Campbell
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ao wrote:Today is a good
ao wrote:

Today is a good reason for why you don't want to leverage in the short term.

Yup. Gold fluctuates. It was down last week too and then up again. I was thinking of slightly longer term than that though!

ao's picture
ao
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buy

Dirk,

Now you buy.  And don't leverage.

Dirk Campbell's picture
Dirk Campbell
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 Thanks ao! Interesting

 Thanks ao! Interesting thread above about why gold has dropped. Someone's saying it may fall to 1600 but it has pulled back to nearly 1800, so - when to jump? Reminds me of playground skipping (what you lot call jumping rope)!

Thanks also to Johnny Oxygen and Agitating Prop for your posts. I remember some time ago reading the thread you linked to JO. Talks about US citizens holding gold overseas so not advice for limeys.

Poet's picture
Poet
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It's A Gamble

Hey, a lot of experts thought houses were a sure thing, too. People scrimped and saved and plunked down a lot of money and signed up for loans...

And now, millions are under water with their home mortgages principal balance higher than market value. Others have defaulted or been foreclosed upon.

I'm not saying gold won't rise. It very well may and I hope it does. But you really should take are of everything else including debts and cash reserves, before considering buying gold with your own money (not with borrowed money).

If you do buy, don't forget to store in a safe, secure location. Maybe get some insurance just like a homeowner would. The last thing you would want is a robbery.

Poet

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patrickhenry
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Poet wrote: If you do buy,
Poet wrote:

If you do buy, don't forget to store in a safe, secure location. Maybe get some insurance just like a homeowner would. The last thing you would want is a robbery.

Poet

 

Filing documents needed for insurance is the last thing you would want to do.   As far as robbery, everyone I know that had gold has already had it stolen ;)

After the Executive Order was signed in '33, everyones' safety deposit boxes were not raided, and no homes were raided,.  In the future, no homes or properties will be searched strictly to find gold.   Given the percentage of gold owners, it would be simply, logisitically impossible.

And if there any anti gold bugs out there yet, I'd remind you that you can't eat American currency either.

http://en.wikipedia.org/wiki/Executive_Order_6102

 

earthwise's picture
earthwise
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Schiff: No gold confiscation.

 

Peter Schiff wrote this a while back re: confiscation. I found it compelling FWIW.

ao's picture
ao
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Poet wrote: of everything
Poet wrote:

of everything else including debts and cash reserves, before considering buying gold with your own money (not with borrowed money).

If you do buy, don't forget to store in a safe, secure location. Maybe get some insurance just like a homeowner would. The last thing you would want is a robbery.

Poet

Poet,

I think you'd find it very difficulty (i.e. costly) to insure your gold.  You can't even insure shipping more than 25K at a time from the USPS, UPS, or Fed Ex.

ao's picture
ao
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Dirk Campbell
Dirk Campbell wrote:

 Thanks ao! Interesting thread above about why gold has dropped. Someone's saying it may fall to 1600 but it has pulled back to nearly 1800, so - when to jump?

You jump when a buying opportunity presents itself like this week.  When I recommended buying, we already had an 8% correction which, in my book, is good enough to buy.  When you had written your first post about buying, the price had been trending strongly upward for a number of days ... a very bad time to buy.  That's why I spoke up.  You're going to have to be very nimble in these markets with your entry point.  Substantial corrections will usually run 2-3 days.  Some posters here have said it's not important when you jump.  They're wrong ... and they're less well off as a consequence.

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