Gold may have replaced the dollar but if Obama is willing to destroy the U.S. Dollar,what’s to prevent him from banning the private possession of Gold in any form other than as jewelry?Nothing.
To do the same today would have a microscopic effect on the economy, or the government’s ability to control it.
Also, those who hold gold today tend to be politically conservative, likely gun owners, and unlikely to obey. Maybe Obama can grab all the supposed Comex gold held by ETFs, but not the gold privately held by ordinary people.
In addition, gold confiscation happened AFTER it had appreciated substantially. If it were to happen, it wouldn’t be at $1500, it might be at $5000, at which price those who complied would receive the full price (if history repeats. The inflation that follows would hurt those dollars, but it’s a darn stretch better than not having enjoyed the gold gain to have a larger pile of deflating dollars.
The real question is: why do some freepers seem so eager to make others afraid of owing gold?
You may as well try to talk me into canceling my fire insurance, or consuming my supply of stored food, or spending all my savings. You’re wasting your breath, and we never hear from the anti-gold-bugs what vehicle they suggest for their spare savings. (Which makes it sound like the sour grapes of economic resentment).
1. An initial external stimulus which creates a rapid increase in demand. In gold's case this was the change in the rules governing securitization allowing gold to be incorporated into mutual funds. In housing it was the change in Fannie Mae lending requirements.
2. A rapid increase in price. Once people see the initial increase in demand they begin buying further increasing the price. The circle begins.
3. Investors start holding in anticipation of further big gains. This is where gold's at now. This is creating less supply and further driving up the price.
4. Big fish start taking profit. This floods the market with supply. Usually there is a stimulus for this (big timers don't do it arbitrarily.) In housing it was stricter lending requirements, what can do it with gold? I'm not sure.
5. Demand drys up. Just like tulip bulbs, no one wants to catch a falling knife. This is when the smart money buys.
I’m not telling you what to do.If you wish to purchase Gold go ahead.It’s still a free country T least for now.I just don’t trust Obama not after seeing what he’s done so far.He worries me.
Ammunition, whiskey and aspirin. I'm not really an anti-gold-bug, but those things will have a solid trade value. I've got some gold and silver, but the way the prices have gone over the last couple of years, the only way I'll get any more is with a metal detector.
No, it was confiscated at $20/oz. After the roundup, the price was fixed at $35, effectively reducing the value of the currency people were paid for their gold.
-——gold confiscation happened AFTER it had appreciated substantially-——
Not only that but most of the world had been off the gold standard for 6 years before Roosevelt made the move. He had no choice. Had he maintained the fixed price all the gold would have been sold off
People are America centric not realizing (or admitting) our economy is part of the world economy. The depression and the end of the gold standard were not really American events. The world was involved.
Why do some fear gold? Ignorance mostly. There are those who extrapolate hard times into catastrophe and chaos, believing in their hearts that ammo is the supreme. The likely hood of trading ammo for anything is so remote it is laughable. There have been innumerable panics and hard times but never one where times were so bad that ammo or any thing similar was the medium of exchange. Gold or silver coins will never be the medium of exchange on a world scale.
The question that should be considered is Gold ( or silver or land or canned goods or any hard asset besides ammo ) a better investment than government bonds or savings accounts or certificates or deposit or cash in the mattress?
The answer is yes. In an inflationary economy, hard assets are a very good way to preserve wealth.
People who have no money to invest need not concern themselves with the question