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A certain doctor by the name of Jeffrey Lewis who discloses that his “site was
created by someone with no professional background in investing” tells us that silver was also confiscated by
FDR in 1934 (the gold
confiscation actually occurred in 1933, the 1934 Acts made gold contracts
unenforceable and devalued the U.S. dollar from $20 to $35 per ounce):
“The history of confiscation of precious
metals is well documented, with literally tons of gold and silver ripped from
the hands of ordinary Americans during the financially tumultuous years of
the Great Depression. However, history books and academic research
rarely shine light into the confiscation of silver and rather focus on gold,
even though both were made illegal for a total of 40 years.
In this article, we’ll examine the history of
confiscation and shed light on the possible future confiscation of silver
from investors.
Once Upon 1934
Franklin D. Roosevelt penned the first law to seize
precious metal assets from Americans as a way to force savings in banks,
rather than allowing Americans to hold their wealth in metals. Prior to
the legislation, banks were riddled with liquidity problems, as trust in the
American banking system waned and investors looked for the safest place to
store their wealth. With both the banking system in question and the
stock market still volatile after its peak in 1929, investors wanted hard
assets, namely gold and silver.
FDR hoped confiscation would push investors towards
the banking system, as well as raise cash for a growing Federal budget.
Unfortunately, it did just that – all the while ripping wealth right
out of the hands of the American people.
The Confiscation of Silver
Silver bullion was also made illegal to own during
the 40 year ban. However, this is often little discussed, as silver
coins were still a large part of the money supply up until 1964. Almost
all pre-1964 coinage was 90% silver, and the coins were not illegal to own
during this time, as it was a mainstay of the monetary economy. Silver
bars, on the other hand, were illegal, as they represented wealth outside the
monetary system and were systematically “purchased” from their owners
at a price well below market value”.
This of course is utter BS. Silver was never confiscated by FDR. I
don’t think silver has a checkered past of being confiscated by other
governments either. You can read a good overview of what “confiscation
fears” can do to your bullion accumulation plans here. You can also
see this excellent summary of the Hunt silver episode for more information on the silver market in the
1970s. How could the Hunts have acquired 55 million ounces of silver in 1973
if it was illegal to own silver bullion?
I’m not endorsing any particular bullion
dealer over another here, I am endorsing the truth.
Tom Szabo
Silveraxis.com
Tom Szabo introduces
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