Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Gold and Silver Possession Is a Constitutional Right – and a Practical Imperative

Commodities / Gold and Silver 2018 Mar 23, 2018 - 09:30 PM GMT

By: MoneyMetals

Commodities

By David Smith, It's a safe bet that most readers of this column who hold physical precious metals – gold, silver, platinum and palladium – do so because they view them as a store of value. Gold and silver especially, have served in the role of honest money for at least five millennia.

With a melting point 700 degrees higher than gold, the Spaniards weren't able to determine how to utilize platinum, but they still considered it to be valuable, calling it platina – "little silver." It would be tossed it back into a stream so that it might be able to "grow up"!


Gold, silver, and copper were monetary metals – not chosen because some authority decreed it, but through trial, error, and successful application in everyday life. (Under certain situations, as when India briefly banned gold importation, platinum and silver demand as substitutes, spiked.)

Today, cautious "stackers" don't widely advertise what they hold, not because they are doing something nefarious, but as a practical matter to avoid the possibility of being robbed!

And more fundamentally, because like many other things in our personal lives, it's really no one else's business, unless we decide to make it so.

Historically this has more than once become an intensely practical matter, as when Jews fleeing Nazi oppression in the 1930's secreted gold out of Germany, disguised as box hinges and belt buckles painted black. In the case of fleeing Vietnamese in the 1970's (or more recently, Middle Eastern families) it has served as an exchange for life-saving transportation to a different continent and a new life.

Closer to home, Americans felt the sting of government intrusion in 1933 when they were ordered by Federal decree – not long after the President had stated publicly that he would not do so – under penalty of fine or imprisonment, to "turn in your gold."

Banks were closed for four days "in order to prevent the export, hoarding, or earmarking of gold or silver coin or bullion or currency." (So much for storing precious metals in safety deposit boxes!)

Soon thereafter, the official gold price was raised 70%, enabling the government to print money and continue financing record expenditures while keeping the currency backed by the required 40% gold minimum.

All of us are (or should) be aware by now that our privacy across the board has been, if not completely destroyed, then eroded to a point close to it.

The old canard that "If you have done nothing wrong, you don't have anything to fear" is not only outdated and naive, it's simply an invitation to unfettered expansion of authoritarian policies on the part of "the government" at all levels – local, regional and national.

An important inspiration for this month's essay was sparked by a reading of and reflection on a lengthy post at bitcoin.com by Wendy McElroy, titled "Privacy Is the Virtue That Sparked the American Revolution." In a powerful statement, she ties together the concept that even in – perhaps especially because of – the age of digital revolution, privacy is as important today as it has ever been. She says:

Government wants people to believe that privacy is the antechamber of crime, a refuge for miscreants, and a danger to the innocent. The opposite is true. Privacy is a virtue upon which due process, freedom, and personal lives are built. Privacy is at the core of what it means to be human, because the essence of privacy is the individual mind as it assesses and experiences life.

The surest protection of privacy is to do exactly what government fears. Assert it; celebrate it; understand its pivotal importance to freedom. Do not respond to the spine-chilling demand — “Your papers!”

Those who would like to read this column in its entirety, and perhaps study other aspects of McElroy's new book, The Satoshi Revolution: A Revolution of Rising Expectations – which she is "live publishing" – can access it here.

What happens to U.S. holders if gold rises to $8,000-$10,000... or more?

In interviews here at Money Metals, Jim Rickards has stated his belief that at some point in the future, the price of gold will be revalued in an effort to back a significant portion of the Federal debt. He thinks this will be done in one or more steps, to the level of $10,000 per ounce.

Pegging the price at anything close to this level would of course institute a sea-change in the price of all precious metals, as well as the shares of the miners who produce them. It might also introduce a serious inflationary wave into the economy.

Over the next few years, given its ongoing supply/demand matrix, gold has the potential to reach these levels even without the event Rickards describes.

So is another gold confiscation in the cards? I believe that what is much more likely is the imposition of a "windfall profit tax" supported by government entities seeking to fill their own coffers, as well as by envious citizens who did not have the foresight to acquire their own gold and silver ahead of time.

Even so, under such a scenario, would you rather be envious with nothing to show for your inaction, or a bit upset because you had to pay a portion of your newly found largess in taxes?

An alarming new proposal – tracking physical cash.

A recent nominee to the Federal Reserve Board of Governors, the ironically named Marvin Goodfriend, has proposed placing a metal strip in U.S. paper money, in order to track it. Each time it was returned to a bank, the money would be taxed at a pre-determined rate.

In his proposal he stated, “The magnetic strip could visibly record when a bill was last withdrawn from the banking system. A carry tax could be deducted from each bill upon deposit according to how long the bill was in circulation.”

Should this alarming idea become reality, it will only serve to widen the gulf of distrust between the government and the governed. And it might cause even the most shallow thinker to consider that, "Gee, maybe I should get some hold-in-my-hand gold and silver!"

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years, he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector findings with readers, the media, and North American investment conference attendees.

© 2018 David Smith - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules