Gold Why?

Home >> Why Protect Yourself Against The Next Gold Confiscation?

Author: Gold Why Webmaster
Date: August, 2009
AddThis Social Bookmark Button
Gold Why Store

1924 Saint Gaudens Gold Coin  
©iStockphoto.com – bigapple  
In 1933 the United States Government confiscated everyone's gold coins. Can you believe it! If you were smart enough to hold gold coins to hedge your bets against an unstable government, too bad. Your coins were confiscated for a fraction of their actual value and your hard work and prudence were all for nothing. Want to learn a bit more about the 1933 gold coin confiscation? There are already a ton of great articles including this one by Blanchard and Company. I personally believe there will not be another gold confiscation. Perhaps I'm just an optimist. Or, it's my belief that the media is so widespread that it would be impossible for the government to get away with something like this. However, that doesn't mean that I'm not planning for the worst. Hey, I'm a gold coin investor. Is there a gold coin investor out there that is not planning for the worst? The topic of today's article is all about how you can protect yourself from the next gold confiscation.

Multiple Safe Deposit Boxes Protect You From Gold Confiscation, Somewhat

As you know, I'm a big advocate of storing your gold in your safe deposit box. However, I have read a variety of opinions on the Internet that certain banks have orders from the government to freeze safe deposit boxes in the event of an economic collapse. I'm not sure if I believe this or not. Regardless whether it's true or not, why not split your gold holdings amongst several safe deposit boxes at different banks? For example, why not have one safe deposit box at Wells Fargo and another at Bank of America? This only makes sense if you have sufficiently large gold holdings because these boxes will run you $75 or more per year, but I totally recommend this if your gold holdings are large enough. If one bank confiscates or freezes your gold, at least you have the hope that the other won't. Moreover, I have heard reports of bank employees breaking into safe deposit boxes and taking gold coins. Again, I'm not sure if this is true. Regardless, it makes sense to diversify your gold coin portfolio amongst several safe deposit boxes. In the worst case, you will lose half your gold coins if one bank steals your gold. All of this sounds "worst case" and it truly is. However, why not sleep better at night by hedging your bets in case another gold confiscation really happens. Another tip: check your safe deposit boxes regularly. I check mine at least once per year to make sure everything's in order. Another tip: If you go the multiple safe deposit route, why not diversify geographically? Make sure they're at least 20 or so miles apart in different cities.

Protect Against Gold Confiscation With Overseas Gold

There are several options these days to purchase gold and store it overseas, outside the US. If your gold is not in the US, the theory is that the US Government will not confiscate the gold. I personally have not explored any of these options. I'm all about doing things by the book and urge you to do the same. That doesn't mean these aren't good options. It just means you really need to do your homework and execute these strategies the right way. With overseas strategies, I don't know about the tax and reporting ramifications so I have decided not to do anything, just yet. However, once I have a better handle on things and understand how do to this the right way, I very well may explore and implement these options as a way to diversify my portfolio and hedge against the next gold confiscation.

So, what are these overseas gold ownership opportunities? As mentioned in my recent article about my gold monkey, Australia's Perth Mint offers gold certificates. The Perth Mint is the only government-backed allocated gold program. You can buy Perth Mint certificates and have your gold stored in the Perth Mint's vaults overseas. What a great way to protect against gold confiscation and diversify your holdings geographically!

The other neat way to diversify internationally is Bullion Vault. Bullion Vault offers an awesome web interface where you can buy gold bullion. You get to specify where the gold is stored, with many of the options overseas. While this is not a government-backed program like Australia's Perth Mint, the storage facilities are very secure and they seem to go to painstaking details to keep your gold safe and secure. How neat!

Diversify With Some GLD

In recent years, GLD has become extremely popular, now with over 30 billion dollars worth of gold in the fund. GLD is an exchange traded fund of unallocated gold. You buy the fund and you own gold. You don't own specific gold bars and coins like you can in an allocated solutions such as The Perth Mint or Bullion Vault, but your gold is indistinguishable from everyone else's. They store their gold in secure vaults. I see GLD as a great way to diversify in the event of a gold confiscation however I also realize they are a big target. If the government were to confiscate gold, I think they would go after this target first given the huge size of the assets. At the same time, it's great to be able to diversify your holdings in multiple locations to better minimize the risk of confiscation in my opinion.

Gold Mining Company Stocks - Perhaps The Best Hedge Against Gold Confiscation

Here's a solution I really like: Allocate a portion of your portfolio to shares of gold mining companies. This one makes great sense to me because most of these companies are non-US corporations with gold in the ground overseas! While I personally think it's not the right time to own gold mining companies, I advocate owning some of them as a hedge against the risk of gold confiscation. Moreover, as the price of gold rises, these companies should continue to thrive. Key tips: Pick a company that's not US-based and a company with their mines overseas. If gold ever were confiscated, I would imagine these stocks would become increasingly pricey overnight.

Gold Coins On Your Person - Take Matters Into Your Own Hands?

As you may know, I'm a proponent of having a few gold coins on your person. Not only will these gold coins bring you good luck but this is also a good way to potentially avoid confiscation. If there is a gold confiscation, you would think the government would go after easy targets such as GLD and safe deposit boxes. However, the government could also confiscate gold that you hold in your person. If you buy your gold coins with cash and leave no paper trail, there's no way the government could prove you have gold and at that point it's your own moral decision. Personally, like I said above, I like to follow the rules and would hand my gold in if it came to that (we'd have worse problems than gold if things got that bad). Important tip: Make sure to hide your gold carefully.

The Government May Not Confiscate Numismatics

There are two types of gold coins: gold bullion coins and numismatics. Most of this site is devoted to gold bullion. I personally don't own any numismatics yet, however I do plan to go that route as I have more money. A great example of a numismatic gold coin is the gold Saint Gaudens. If the government confiscates gold coins, they are likely to ignore collectible coins, especially those with older dates. At that point, these coins will be increasingly valuable.

Confiscation Not Likely But Why Not Protect Yourself

I don't think there will be another gold confiscation. However, just in case there is, why not protect yourself a bit by deploying a few of the strategies in this article? You will sleep better at night knowing you have done your best to protect your valuable gold portfolio. Moreover, I want to stress there's nothing shady about this. As I said, I like to do everything by the rules. You can protect against gold confiscation while following the rules to the letter if you're smart and plan well.

Buy Gold Coins on eBay

Related Gold Articles

Return Home
Why Did I Create Gold Why?
Why Buy Gold Bullion Coins?
Why Buy Tacoma Copper Bars?
Why Collect Maui Trade Dollars?
Why Gold Coins Bring Good Luck?
Why Own and Wear Gold Jewelry?
Why Buy Gibraltar Dog Gold Coins?
Why Buy Coins From Pennies.com?
Why Buy Isle of Man Cat Gold Coins?
Why Be Careful Buying Coins Online?
Why Buy Silver Strike Casino Tokens?
Why Buy Johnson Matthey Gold Bars?
Why Buy Gold From Creative Sources?
Why Buy Bullion From Joliet Metal Mint?
Why Give Gold Coins For The Holidays?
Why Buy Fractional Silver Bullion Coins?
Exclusive Interview With River City Coins
Exclusive Interview With Market Harmony
Why Buy Silver Vacation Souvenir Coins?
Exclusive Interview With E Cohen Minting
Why Buy 1/20 Ounce Gold Bullion Coins?
Why Buy Gold and Silver Bullion on Ebay?
Exclusive Interview With The Copper Cave
Why Hide Your Gold Coins In A Safe Place?
Why Buy Exotic Bullion From Jetco Minting?
Why Participate In The Gold Why Giveaway?
Why Pay Yourself First In Gold Bullion Coins?
Why Buy 25 Dollar Boxes of Copper Pennies?
Beginner's Guide To Investing In Gold Jewelry
Why Buy Gold and Silver From GovMint.com?
Why It's Not The Right Time For Gold Stocks?
Why Diversify Within Your Gold Coin Portfolio?
Why Vote For Ron Paul? A Gold Bug's Opinion
Why Collect Spare Change From The Ground?
Why Invest In Shares of Gold Mining Companies?
Why Buy Physical Gold Coins Versus Gold ETFs?
Why Store Gold Bullion In Your Safe Deposit Box?
Why Buy Copper Bullion Bars From The Metal Mint?
Why Buy Gold Bullion From Well Known Gold Shops?
Why Am I Hoarding One Dollar (and Five Dollar) Bills?
Why Buy Gold, Silver, and Copper From E Cohen Mint?
Why Buy Gold Versus Silver? Why Buy Silver Vs. Gold?
Why Have There Been No Updates To Gold Why Lately?
Why Buy Gold and Silver From The eBay Bullion Center?
Why Complement Your Gold Portfolio With Other Metals?
Why Subscribe To Gold Why's Exclusive Email Newsletter?
Why Watch The Coolest Gold Collection Ever On YouTube?
Why Gold Is An Important Investment In Our Bad Economy?
Why Buy Gold Bullion Coins From Blanchard and Company?
Why Buy Coins From Shop NBC? Review of The Coin Shoppe
Why Buy Copper Bullion From The Copper Cave by Susquehanna Hobbies?

Ask A Gold Question     Gold Why Store     Gold Price     Gold Why Newsletter

Copyright © 2007-2017 GoldWhy.com - All Rights Reserved - Do Not Duplicate Content Without Expressed Written Permission
Home     Sitemap     About Us     TERMS AND CONDITIONS     PRIVACY POLICY     DISCLOSURE     Gold Links     Contact Us
Disclaimer: The information on this site is purely for entertainment and is not investment advice.

Cookies Policy: This site uses cookies from Google to deliver its services, to personalize ads and to analyze traffic. Information about your use of this site is shared with Google. By using this site, you agree to its use of cookies. Learn More

Page copy protected against web site content infringement by Copyscape