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Readers may not agree with our conclusions on the
confiscation of gold, but we emphasis this reality. If we are wrong you will still
own your gold. If we are right and you have not taken the right steps to
guard against confiscation and the personal dangers to you individually, you
will lose your gold if not suffer the penalties the “Gold Confiscation
Order” brings with it.
What
if the Authorities order you to repatriate it?
Consistent with the desire of the authorities to
reap as much gold from their citizens as possible, a “Gold Confiscation
Order” is likely to require citizens to disclose their ownership of
gold as well as require gold dealers, custodians and the like to disclose
their client’s names and amounts of gold owned under threat of
penalties. Once they have these details, they will record who owns gold
outside their Jurisdiction, but is a citizen of the country. With little
effort citizens who own gold offshore will become transparent to them.
Inevitably they will require its
repatriation back home or the transfer of its ownership to the state.
So what does one do? If it is owned
directly in your name and stored overseas, there is nothing you can do except
repatriate the gold. Failure to do so will open you up to penalties such as
came with the “Gold Confiscation Order” in 1933 [10 years in
prison and or $10,000 [in 1933] in fines].
Some may expect to be forced to sell
their gold, but this would make the exercise pointless, because the
authorities can print as much money as they like through Quantitative Easing.
No, they will want just gold, at that time.
That’s why you should own your
gold in a way that ensures it cannot be repatriated or transferred, even if
you were under pressure from your government. But more than that you must be
able to assure your government that you cannot repatriate it or transfer it
to them in a way that does not leave you culpable. [There is a way. Contact admin@StockbridgeMgMt.com for information]. Ideally this means if owning
gold should continue, you’d able to sell it
when you want in the quantities you want, whenever you want.
What
if the Custodians banks of your gold ETF are told to pass your gold to the
Authorities?
The first question an investor should ask when he
believes he owns gold in an E.T. F. is does he own that gold or is it owned
by the E.T.F.? The E.T.F. issues shares against the gold it owns. It is
‘unallocated gold’ so cannot be directly linked to an individual
investor. In fact, should the E.T.F. for some government inspired reason go
into liquidation, the investors who own shares representing gold in the
E.T.F. will be unsecured creditors
of the E.T.F.
The Custodian [the largest of which is
the bank H.S.B.C.] bank will without hesitation hand the gold it holds for
the E.T.F. over to the government or freeze it until the E.T.F. agrees to
hand it to the government in compliance with a “Gold Confiscation
Order”. The shareholders are likely to be compensated with government
Treasuries, or the like in payment, at market related prices, at the time. The
prices of those Treasuries are likely to be falling at the time.
The bottom line
is that you do not own gold held by a gold E.T.F. Consequently you will be
powerless to claim the gold that your shares represent.
We know of no other gold storage system
that effectively blocks the confiscation of gold and the threats to the
individuals, from government, that beneficially own the allocated gold, as
does the twin scheme of Stockbridge
Management Alliance Ltd. under the guardianship of the Ultimate Gold Trust S.A., a Swiss
company. (For more information contact admin@StockbridgeMgMt.com)
Is
there really a danger of gold being confiscated?
Sharps Pixley a London
Gold dealer has reported that:
“In the Basel III, gold has been re-rated from a
Tier-3 asset to a Tier-1 asset, or "zero-risk" collateral. This
means that banks can decide to buy gold instead of sovereign bonds to fulfill
the rise in the Tier 1 asset requirement. The Shanghai Gold Exchange has just
started a trial on gold inter-bank trading in order to increase the liquidity
and flow of gold in China.”
This
brings the concept of the confiscation of gold, one step closer to a reality
that will come upon us as a surprise! So, we believe that there is! This is part of what we said in the
Introduction to this series:
“Importantly, Central Banks and the Authorities possibly will not
wait for the monetary system to crash before acting to ensure they have
enough gold to keep the monetary system working. They will act well ahead of
that time to make sure they avoid a collapse and attempt to engineer the
event so as to catch gold investors by surprise, removing their chances of
making any contingency plans. With their prime objective being to shore up
confidence in the monetary and banking system, they could not afford to
signal the market about their intentions beforehand. We are not just talking
about the U.S.A. but many other countries that may precede or follow the U.S.
in these acts. The trouble is that the gold they ‘acquire’ maybe
yours. Wisdom demands that the banking crises we have seen since 2007
don’t happen again, because this time round they may well collapse.
Prudence demands that investors don’t take that risk but act before they
can’t. The risks of not guarding against this eventuality are enormous
and the rewards of guarding against it are massive. If it doesn’t
happen you will lose little if anything. If confiscation does happen then you
lose a lot. It’s a matter of risk and reward!”
We believe that the confiscation of
gold for this purpose is a very real and present danger and have organized a
way to protect against that eventuality.
Julian
D. W. Phillips
Contact us through www.GoldForecaster.com or admin@Stockbridgemgmt.com for
more information
Subscribers will see this series first on the www.GoldForecaster.com website, ahead of general
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Legal Notice / Disclaimer
This
document is not and should not be construed as an offer to sell or the solicitation
of an offer to purchase or subscribe for any investment. Gold Forecaster -
Global Watch / Julian D. W. Phillips / Peter Spina,
have based this document on information obtained from sources it believes to
be reliable but which it has not independently verified; Gold Forecaster -
Global Watch / Julian D. W. Phillips / Peter Spina
make no guarantee, representation or warranty and accepts no responsibility
or liability as to its accuracy or completeness. Expressions of opinion are
those of Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina only and are subject to change without notice. Gold
Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina
assume no warranty, liability or guarantee for the current relevance,
correctness or completeness of any information provided within this Report
and will not be held liable for the consequence of reliance upon any opinion
or statement contained herein or any omission. Furthermore, we assume no
liability for any direct or indirect loss or damage or, in particular, for
lost profit, which you may incur as a result of the use and existence of the
information, provided within this Report.
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