Many investors are now choosing to invest gold and other precious metals. Investors are now looking for ways to safeguard their savings because of the current economic climate and fears about another economic collapse. As a tangible asset, gold is an excellent way to protect your investment dollars transfer IRA to gold .
Many investors have begun to withdraw money from their 401Ks and IRAs, liquidate all of their retirement accounts, or move their retirement funds into gold IRAs. Although this is a great investment, others warn that it could lead to your gold being confiscated by the government. Many people are hesitant to move their 401K to a Gold IRA or buy gold bullion.
In reality, the fear that the government could or would seize your gold is just a marketing tactic used by certain gold companies to convince you to buy numismatic or collectible coins. If a Presidential order, similar to that which was passed by President Roosevelt in 1933, is passed, then numismatics coins are not subject to government seizing. Citizens were allowed to keep collectible gold coins. This loophole is used by unscrupulous dealers to encourage you to purchase overpriced collectible coins.
Does The Government Have the Right to Take Your Gold?
There is currently no order that would allow the government to seize gold. The order of 1933 did not allow the government the right to go about seizing gold. They required citizens to surrender their gold. For this, they were compensated. This was in an age when the US dollar was backed up by gold. The US dollar has been devalued and is no longer supported by gold. Therefore, the government would not have any reason to confiscate or require citizens of the US to turn in their gold.
How many Americans do you think turned in their gold? And how many people continued to hold onto gold? If the number pre-1933 common gold coins is an indicator of how compliant people are, then it’s clear that many people remained loyal to their gold. Remember that these coins were made of gold and were intended to be used as currency. They were not collectible coins.
Why Your Gold Is Not Being Seized by the Government
Even if the United States reverted to a gold-backed dollar, the gold price would rise into the stratosphere. Gold would need to be selling for at least $10,000 an ounce in order to restore the gold standard to the United States. Some estimates place this price at more than $40,000 an ounce. In order to inject more money into an economy, it would have to have more of the precious metal.
The government prints money to stimulate the economy, which is what it does currently. Inflation can be caused by this but it is the way things have worked since the US dropped the gold standard.