Bullion vs Numismatic coins

[jerryf]

I have a lot of graded modern gold bullion coins. Recently. I have seen suggestions that the U S Treasury may recall all bullion gold since the economy is in such bad shape and may get much worse. The recommendation seems to be to convert the gold bullion that can be recalled to numismatic coins that cannot be recalled. Reference is made to the gold bullion recall during the depression in the 1930's, and, the law to allow this is still on the books.

 

To me, It just doesn't seem this will happen. Does anyone else have any thoughts on this subject.

 

jerryf

[physics-fan3.14]

This is an absolutely ridiculous and unfounded rumour. Pay no more heed to it than you would the rumours about global warming or that the world is going to end in 2012.

[me0505]

I may be way off base, but in the '30's we, the U.S., were using the Gold Standard (i.e. gold backed the dollar). We are no longer using that system and a "recall" would MAYBE be the last resort.

 

I wouldn't think that the entire populations gold bullion would make much of a difference/dent in a 10 trillion dollar debt???

[TomB]

Gold confiscation is preposterous.

[RareSov]

I agree. Preposterous. People would not stand for it. There would be riots on a scale you have never imagined.. I would not want to be the government that tried to pull that off.

[RareSov]

Gold holding should be ignored when they try to fix this. Just BUDGET. Use the word properly, cut things tight and get everyone to work together on cheaper in every area in the entire world. Make things better, more economical. Reduce all waste. etc etc the list of things that could be done goes on forever.

[physics-fan3.14]

Gold holding should be ignored when they try to fix this. Just BUDGET.

 

The difference between 1933 and now is that gold is not money now. In 1933, the government could not inflate as needed because gold was money, and was in limited supply. Today, gold is not money and the price of it is free to fluctuate based on supply and demand. The government can now print money by the trillion, as it has done since the start of this crisis (currently, bailout funds are "budgeted" at $7.2 trillion, not including the next $850 billion Obama wants, according to CNN). Indeed, this is one of the reasons that the leading economies abandoned the gold standard at the beginning of teh 1930's - so that they could begin inflating and stimulating the economy according to the socialist/Keynesian economic policies which we are still following today (according to "The Snowball," the excellent biography of Buffet that recently came out).

[michael]

gold confiscation will most likely NOT happen

 

for gold holding but i would rather be holding slabbed pre 1933 saints in ms63-64

 

or some really choice unc classic head gold or killer au three dollar gold

 

or choice proof pre 1915 gold

[RareSov]

A Merrill Lynch fatcat spent $2.9 million hiring Barack Obama's decorator to redesign his office, as the bank was being pummelled by the subprime fallout last year, it has emerged.

 

Uhh yeah, what was I saying about wasted money ? waste is everywhere.. if the government were serious then things would be much tighter in so many areas. Starting with the health system.

[Conder101]

Recently. I have seen suggestions that the U S Treasury may recall all bullion gold since the economy is in such bad shape and may get much worse.

This rumor has been trotted out every couple years since ownership was legalized in 1974, usually by semi-shady companies that specialize in selling generic US gold coins at prices higher than you can get them from your local dealer and lower than the TV hucksters want.

 

The recommendation seems to be to convert the gold bullion that can be recalled to numismatic coins that cannot be recalled.

This is a favorite claim, but how do they know what the recall decree would be this time? Sure they didn't call in the "numismatic" gold in 1933, but that DOES NOT mean that if for some reason they did recall the gold they couldn't require all of the generic numismatic gold as well. They could very easily say all gold coins with numismatic value less than three times the gold content, or four time, or five times, anything they want.

 

I don't think they will recall gold, unless they decide to chop two zeros off the dollar and go back on the gold standard, but the flaws in their claims just show that all they care about is separating you from your money.