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I get asked a lot
about where to buy the best small denominational gold/silver bullion coinage.
An argument that often arises is should one stick with government issued
coins like a Maple Leaf or American Eagle, Krugerrands, etc. Let’s take
a look back in recent history. In 1933, Franklin D. Roosevelt by Executive
Order, confiscated all gold coins and bullion from US citizens.
By law, private gold ownership was forbidden in the US from 1933-1974. In
1933, it had to be sold back to the Federal Reserve Bank. This is an important
point to remember when we start discussing “non-confiscatable”
gold.
Many people are unaware of this fact: Government issued coins are not yours,
you are only the BEARER of the
coin, NOT the owner, as it is actual currency owned by the government. Just
like on a dollar note, it says you are “the bearer”. This applies
to all government issued currency.
One of the forms of gold that was not subject to the executive order for confiscation was
religious collectable gold. Such as religious relics, medallions, etc.
Read the order here.
Gold has been money on this earth for over 5,000 years. Throughout history 2
distinct types of coins have circulated; Monopoly Coins and Open Exchange
Coins:
1. "Monopoly Coins" identified by:
Government and/or 3rd party monopoly ownership (e.g. by various coinage acts
and decrees.)
- A monetary face value determined by statute (e.g.1 Denarius, $1, or 50
pence)
- Government inscription (e.g. Image of "Caesar" or state
"ID".)
- Little or no integrity of precious metal content.
- Little or no intrinsic value.- Being merely tokens of inferred value.
- Government can buy back at anytime for face value only - $50 gold coin
(you'll get $50).
2. "Open Exchange Coins" identified by:
- Private bearer ownership.- Intrinsic value in their own right.
- Integrity of precious metal content.- Absence of a monetary face value.
- Absence of government or third party encumbrances.
- Open market assessment as to their value and tradability.
- Bearer's liberty as to usage or hoarding.With the benefit of historical
hindsight, the civilizations that have embraced a system of just weights and
measures and an open exchange of gold and silver coinage, not only enjoyed
longevity as a power, but their citizens and those who chose to trade with
such currency of integrity, enjoyed the prosperity and security it ensures.
MAXIMUM BENEFIT TEST
In order for gold and silver coinage to enjoy maximum benefit in the market
place it must pass the following 5-point test.
1. The coin must be your property (Government issued coins are not yours, you
are only the BEARER of the coin, NOT the owner, as it is actual currency
owned by the government).
2. It must be a stipulated weight (Grams or troy ounces are preferred)
3. It must be a determined purity (Preferably pure gold, pure silver or a
mixture)
4. It must be in small denomination of weight (2-30 grams, or 1/10th -1 troy
ounce)
5. It must be internationally recognized (Via a reputable hallmark or
trademark)
Based on the points above, here are other things to look for when shopping
for gold;
* Mint fresh and un-circulated, issued with their refiner's certificate of
fine weight and purity which makes it 100% standardized.
* Stipulated weight and purity, insuring their determined international
value.
* Small denominations of weight making them liquid and easily tradable.
* Bear an internationally recognized Hallmark, attesting to their internationally reputable
purity and minting.
* Fit the description of 'free market commodity' (sometimes referred to as
free-market money).
* Ownership rights: 100% private Gold, non government issued.
If you have doubts that gold confiscation will ever take place again, think
again. There is approximately a half an ounce of gold above the ground today
for every living person on the planet. When fiat currency
deflates,
a logical step for the government is to reclaim their gold as their currency
could be rendered worthless. Also, confiscation is such a serious downside,
that I would not want to take my chances.
Tune in next time when I discuss another form of wealth confiscation that
many people are not aware of. This happens globally, everyday, even while we
sleep.
Kirsty Hogg
Gold Wars
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