Skip to comments.Keeping Precious Metals Offshore (not legal in all states)
Posted on 01/17/2010 3:53:10 AM PST by Daisyjane69
An increasing number of Americans are concerned enough about the threat of precious metals confiscation to want to store gold or silver overseas. But laws in effect in 21 states may stand in their way.
I learned about these laws last year when one of my subscribers in Arizona called.
He wanted to buy gold from a foreign dealer for storage offshore, but the dealer refused to sell to him. The reason: the Arizona Model Commodities Act. After some research, I learned that 21 states have enacted the MCA or some variation of it: Arizona, California, Colorado, Georgia, Idaho, Indiana, Iowa, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oregon, Utah, and Washington.
(Excerpt) Read more at whiskeyandgunpowder.com ...
From: President of the United States Franklin Delano Roosevelt
To: The United States Congress
Dated: 5 April, 1933
Presidential Executive Order 6102
Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled
An Act to provide relief in the existing national emergency in banking, and for other purposes, in which amendatory Act Congress declared that a serious emergency exists,
I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of the order:
Section 1. For the purpose of this regulation, the term ‘hoarding” means the withdrawal and withholding of gold coin, gold bullion, and gold certificates from the recognized and customary channels of trade. The term “person” means any individual, partnership, association or corporation.
Section 2. All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:
(a) Such amount of gold as may be required for legitimate and customary use in industry, profession or art within a reasonable time, including gold prior to refining and stocks of gold in reasonable amounts for the usual trade requirements of owners mining and refining such gold.
(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having recognized special value to collectors of rare and unusual coins.
(c) Gold coin and bullion earmarked or held in trust for a recognized foreign government or foreign central bank or the Bank for International Settlements.
(d) Gold coin and bullion licensed for the other proper transactions (not involving hoarding) including gold coin and gold bullion imported for the re-export or held pending action on applications for export license.
Section 3. Until otherwise ordered any person becoming the owner of any gold coin, gold bullion, and gold certificates after April 28, 1933, shall within three days after receipt thereof, deliver the same in the manner prescribed in Section 2; unless such gold coin, gold bullion, and gold certificates are held for any of the purposes specified in paragraphs (a),(b) or (c) of Section 2; or unless such gold coin, gold bullion is held for purposes specified in paragraph (d) of Section 2 and the person holding it is, with respect to such gold coin or bullion, a licensee or applicant for license pending action thereon.
Section 4. Upon receipt of gold coin, gold bullion, or gold certificates delivered to it in accordance with Section 2 or 3, the Federal reserve bank or member bank will pay thereof an equivalent amount of any other form of coin or currency coined or issued under the laws of the Unites States.
Section 5. Member banks shall deliver alt gold coin, gold bullion, and gold certificates owned or received by them (other than as exempted under the provisions of Section 2) to the Federal reserve banks of there respective districts and receive credit or payment thereof.
Section 6. The Secretary of the Treasury, out of the sum made available to the President by Section 501 of the Act of March 9, 1933, will in all proper cases pay the reasonable costs of transportation of gold coin, gold bullion, and gold certificates delivered to a member bank or Federal reserve bank in accordance with Sections 2, 3, or 5 hereof, including the cost of insurance, protection, and such other incidental costs as may be necessary, upon production of satisfactory evidence of such costs. Voucher forms for this purpose may be procured from Federal reserve banks.
Section 7. In cases where the delivery of gold coin, gold bullion, or gold certificates by the owners thereof within the time set forth above will involve extraordinary hardship or difficulty, the Secretary of the Treasury may, in his discretion, extend the time within which such delivery must be made. Applications for such extensions must be made in writing under oath; addressed to the Secretary of the Treasury and filed with a Federal reserve bank. Each applications must state the date to which the extension is desired, the amount and location of the gold coin, gold bullion, and gold certificates in respect of which such application is made and the facts showing extension to be necessary to avoid extraordinary hardship or difficulty.
Section 8. The Secretary of the Treasury is hereby authorized and empowered to issue such further regulations as he may deem necessary to carry the purposes of this order and to issue licenses there under, through such officers or agencies as he may designate, including licenses permitting the Federal reserve banks and member banks of the Federal Reserve System, in return for an equivalent amount of other coin, currency or credit, to deliver, earmark or hold in trust gold coin or bullion to or for persons showing the need for same for any of the purposes specified in paragraphs (a), (c), and (d) of Section 2 of these regulations.
Section 9. Whoever willfully violates any provision of this Executive Order or these regulation or of any rule, regulation or license issued there under may be fined not more than $10,000, or,if a natural person may be imprisoned for not more than ten years or both; and any officer, director, or agent of any corporation who knowingly participates in any such violation may be punished by a like fine, imprisonment, or both.
This order and these regulations may be modified or revoked at any time.
Franklin D. Roosevelt
President of the United States of America
April 5, 1933
I knew about that, of course. But I had no idea these states got their grubby paws involved in it.
Guess I shouldn’t be surprised...
“With this background, its not surprising that states acted to protect their residents from commodities scams.”
I’m soooo glad mommy govt is there for us. What would we do without their benevolent oversight.
It always helps to know where we’ve been to understand where we’re going.
It feels like “Groundhog Day” around here much of the time!
Why would anyone want someone to “hold” something for them offshore? If you need it, you need it where you can get to it. It’d be like having someone “hold” ammo for you. If the balloon goes up you’d never see it again.
Go to a coin shop and pay cash for bullion coins. Walk out with them. They will appreciate just as much buried in your backyard and they’ll be there if you need them in a hurry.
Since Gold has gotten so expensive I have switched to Silver Dimes which I keep to hand. I want my cash available and not subject to confiscation by aome offshore Government.
Talk about a blatantly illegal executive order.
They can pick up the guns and gold on the same trip.
And good luck to them.
It's not 1933, and our trust in the good intentions of the govt is GONE.
The most interesting thing about some state legislative packages is that there is often a single “consulting” firm behind the sale of these to a state legislature. Designed always to “solve” pne “problem” or another, sometimes crafted on K st in DC in concert with some federal regulatory requirement the state has to meet to obtain federal funds. Usually enriches some lobbyist somewheres.
I wonder what the origin of this one might be?
Buy your gold-—actual gold—not CERTIFICATES.
Put it where you want it to be.
Do not put a middle man into the deal.
There are a million ways to hide something. Some people have larger pieces of property.
I am of the firm belief that precious metals, unless you do something with them, like use them for electronics or art, are pretty useless.
First of all, they must be in your personal possession. If you want them to be transferable, they likely have to be sealed in tamper proof and reputable dealer sealed and numbered packaging.
Second, they are transferable only in their packaging, and cannot be easily fractioned, which means that this has to be done with another medium, such as commodities or currency. In turn, this is based on the willingness of someone else to trade for it.
Third, to be used in jewelry, it often needs to be alloyed with some other metal for hardness. And the trade market for jewelry is terribly discounted.
As fungible trade goods, precious metals are at the bottom. Superior to precious metals are gemstones, art, commodities, foreign currencies, other merchandise, services, local hard currency, and electronic currency. Pretty much in that order.
Finally, precious metals can make some people behave irrationally, and far beyond the value of those metals. Getting robbed or killed over a piece of metal is pretty dumb.
Fake Indian Head & Large Cents (Just be careful)