1933 Gold Confiscation
From looking at some of the recent headlines, it would seem that the gold confiscation of 1933 is still a hot topic. For those that are either collecting gold coins with numismatic, monetary value or for those investing in bullion, the possibility of the government confiscating an individual's gold is always a worrying thought.
Looking back, the good times during latter part of the 1920's - with the stock market growing, partially driven by investing sending prices beyond true value - came to an end in 1929 . . . with 'Black Tuesday' leading the the 'Great Depression'.
Seeking to boost the dollar, then President Franklin D. Roosevelt, issued an order to confiscate all gold bullion from American citizens. This being done under the threat of imprisonment or fines. As always there exceptions. Citizens could continue to own numismatic "gold coins having a recognized special value" .... "of rare and unusual coins".
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View image representations of the 1933 Executive Order below. Images courtesy GoldLine.com.
This lead to the government devaluing the dollar and raising gold's value by 75%. Sadly many of the gold coins confiscated were melted down. This, of course, allowed coin collectors and dealers to profit. Not only did they gain from the increase to the value of gold but also the melting lead to greater scarcity of the collectible gold coins still remaining.
And, while it's possible that these events have helped fuel the interest in gold seen today, there is no conclusive information that would indicate another government confiscation is forthcoming.
View Page 1 of 1933 Confiscation Executive Order
View Page 2 of 1933 Confiscation Executive Order
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