Posted on 06/13/2021 3:39:26 PM PDT by blam
On April 5, 1933, under the pretext of a national emergency, President Franklin D. Roosevelt issued Executive Order 6102, making it illegal for U.S. citizens to own gold.
The decree forced Americans to sell their gold at an artificially low “official price.” If they refused, the government could hit them with stiff penalties: a $10,000 fine (equivalent to $205,000 today) and/or up to 10 years in prison.
The government blatantly stole wealth from the American people.
Many worry the U.S. government might confiscate gold again if it becomes desperate enough. I don’t think those fears are unfounded. The U.S. government’s abysmal financial situation is only getting worse.
But would it really do a 1933-style grab again?
I don’t think it will. However, there is another growing threat to your gold.
More Likely Than Outright Confiscation
Today, only a tiny fraction of the U.S. population owns gold. Heck, I’d bet most Americans have never even seen a gold coin, much less appreciate its value.
This wasn’t the case in 1933, when the U.S. was still on a variation of the gold standard. That’s why the government probably won’t repeat the 1933 rip-off. It’s simply not worth the effort.
If the government wants to confiscate wealth, it’s far more likely to go for the easy option… steadily debasing the currency by printing money. It’s a stealthy way to confiscate from savers.
That doesn’t mean gold owners are in the clear.
I think the government will try a new scam: taxing windfall profits on gold. This would make it much easier for the government to accomplish something similar to its 1933 heist.
There’s precedence for it, too. In 1980, Congress passed the Crude Oil Windfall Profit Tax Act, which taxed up to 70% of “windfall profits” of domestic oil producers.
What the heck is a windfall profit anyway?
As far as I can tell, it’s whatever politicians decide it is. It’s completely arbitrary. There are no objective measures to define it.
In short, a windfall profit is simply a profit politicians don’t like.
The whole concept is a scam—a word trick to camouflage and sanitize legalized theft.
If the price of gold explodes, I wouldn’t be surprised if Congress passes a Fair Share Gold Windfall Profit Tax Act levying a tax of 80%, 90%, or more on gold profits.
Fortunately, there are some practical steps you can take to protect yourself from this form of politically motivated expropriation.
One way you can avoid a windfall-profits tax on gold is to renounce your U.S. citizenship. But that’s a drastic step. It’s just not realistic for most people.
Thankfully, there’s a far more practical option. You can do it from your living room. And you don’t have to turn in your passport.
The solution is to own gold stocks in a Roth IRA.
A Roth IRA is a tax-free zone. You fund it with after-tax savings, and any future capital gains or income derived from investments in your Roth IRA are not taxable.
While you can never be 100% sure what the U.S. government will do, it’s far less likely a future tax increase, even a windfall-profits tax, would affect investments in a Roth IRA.
A Roth IRA is the most practical way to protect yourself from the most likely form of future gold confiscation—a windfall-profits tax. It makes you a hard target.
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So, what is to prevent the government from deciding to start taxing Roth IRA’s?
A friend of mine’s father retired and took up metal detecting as a hobby. One day he was running his detector in the neighbor’s yard and found a bag of double-eagle gold coins in an old cistern.
Somebody probably hid them their to keep them out of FDR’s grubby mitts and died without telling anyone.
Now his father doesn’t know what to do with them since he can’t explain where they came from without losing them.
The thought that people would start shooting at them.
They are able to do whatever they please, whenever they please.
I don’t see it that way. If you get so dire that gold becomes a medium of currency, it’s going to get a whole lot uglier than a windfall profit tax
Sigh.
No Sale.
I will keep what is mine.
Gold bugs who always go back to 1933 are in fantasyland. In 1933, the dollar was backed by gold so the US Treasury had a very compelling reason to seize gold and give citizens IOUs. Today that compelling reason does not exist. Plus in 1933 gold was widely held and used. Today gold is a minute fraction of economic activity.
dark money
Gold stocks? Forgive my naïveté, but is that real gold?
He can say he found them in his own backyard.
They're still there somewhere...when I went back to get them it had flooded and erased every trace of where I had buried them.
I never found them.
Absolutely nothing.
But at least with a Roth IRA they are less likely to take your principal than they are with a regular IRA because if they reach the point of retroactively refusing to allow Roth to accrue interest without taxation they are also likely to say, with a regular IRA, that it was improper in the first place to let tax not be paid on the principal ... and so you not only will be assessed taxes on that principal you may be assessed interest or even penalties as well.
Of course they may forgive the penalties just to keep the sheep happy. Maybe even the interest too.
Progressivism is theft. Always has been theft. Only can be theft.
Progressivism produces scumbags.
Tell me more?
Also do you have a metal detector?
They won't know you have them, so they can't touch them.
When the SHTF, the Underground economy will be the real economy and where you'll want to be, anyway.
And that's where you can spend them.
There’s an agenda behind this disingenuous article.
There is an ongoing Precious-metal squeeze. Gold/Silver are selling for a good margin over spot. The squeeze will kill the COMEX and “paper” metals.
What this article is pushing is paper metals, as I don’t think there is a way to have physical metal as part of your Roth.
Don’t take the bait - physical Gold/Silver ONLY!
Why would he lose them?
No. It was on the side of a dirt road then and now it's a wide paved road. I've always thought that the road workers must have found them when they widened and paved the road.
My best friend went looking for them with his metal detector...no success.
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