Uncle Sam’s Gold Grab

Ponder this from Richard Benson of Benson’s Economic & Market Trends as posted on Financial Sense:

Beware!  If you currently own gold through an ETF it may not be safe.  With one little stroke of the President’s pen, it can be confiscated by the US Treasury for so-called national security purposes.  The government officials will claim they are out to protect US citizens from speculators whom they blame for the dollar collapsing, but in reality their policies that will force Americans, who actually want to save, to flee the dollar.   So, could the US Government grab your gold in an ETF?  

The act of governments stealing gold and robbing currency holders is nothing new, even in America.   President Roosevelt grabbed the gold and devalued it in the 1930 Depression, and Nixon jumped off the gold standard in the 1970s. In order to save the nation the government will need to save the dollar, and the right way to do this would be to run prudent fiscal policy with low budget deficits, and have the Federal Reserve raise interest rates to encourage savings.  But the easy short-term fix is to steal some gold now owned by a few who were only trying to protect their savings.

My nature is not to be an alarmist and I honestly don’t know for sure when and if the US will grab the ETF gold.  However, over the next two years the federal deficit, funded by selling new Treasury securities, is certain to be over 10 percent of GDP.  Holders of the dollar will want out and all that gold sitting in vaults makes it too easy for our federal government to come in and rob you of it in order to save the dollar and pay for socialism.  I understand the morality here:  Inflation is good so robbing savers (for the sake of government) is viewed as good!  Therefore, robbing savers of their gold is even better!

So, buying gold, silver, and precious metals is truly one of the few ways you can immunize yourself from the coming inflationary confiscation of wealth.  Owning physical gold and silver and keeping it safely in your possession is a good idea!  If you can’t get gold, buy silver, platinum, palladium, etc., all in physical form. While you still can, think about moving into physical form any gold in ETFs you have; you won’t be sorry you did! [more]

See also: “SLV” in Danger!