In 1933, President Franklin D. Roosevelt signed Executive Order 6102 “forbidding the Hoarding of gold coin, gold buillion and gold certificates within the continental United States“. The effect of the Order was to criminalise the holding of gold by private individuals, associations and businesses. Patriotic citizens duly turned in their gold bars, coins and certificates, receiving payment equivalent to $20 per ounce. Whilst these individuals may initially have been reluctant to give up their shiny metal, one can imagine their delight in receiving real money in the form of crisp bank notes.
Only in the 1970s did it again become legal for United States citizens to possess gold. Since then, gold has proven a poor investment despite the occasional spike in price due to speculators exploiting public fear. From a high of around $1900 per ounce in 2011, Gold trades today at only $1,190, for a decrease of nearly 40%. In contrast, our stockmarkets are at or near record highs, showing in absolute and relative terms just what a wealth-destroyer gold is.
As we progress as a nation and move towards the utopia of a cashless banking system, it is time to re-examine the case for gold confiscation. Taking a futile stand against progress, like turds that simply will not flush, are the so-called gold bugs. These people, who are forever rooted in a ‘golden age’ that never really existed, claim that to confiscate gold somehow deprives them of liberty, that gold has a long track record as ‘real money’ and that it is insurance against monetary collapse. Let’s consider each of these arguments in turn.
Gold bugs derive a peculiar fascination from taking out their bullion collection and counting their coins. Although this may seem a harmless pervesion, much like being a ‘Peeping Tom’, the reality is that their wealth is literally diminishing before their eyes for the reasons set out above.In the same way that the first duty of government is to protect the nation’s safety and freedoms, many accredited financial experts believe it is also the government’s duty to protect individual investors from their poor investment choices. For this reason, there are moral grounds for the confiscation of gold from private citizens so that they can invest their wealth in real assets and generate returns. Through the operation of the Plunge Protection Team, for example, the government has effectively guaranteed the ongoing increase in the values of shares quoted on Wall Street.
Gold’s track record as ‘real money’
Another favoured argument of gold bugs is that gold has enjoyed thousands of years of use as money. They will explain that gold was the standard means of exchange in the Roman Empire, the Greek Empire, the British Empire, Byzantine etc. The obvious flaw in this argument is that each of these empires no longer exists! In contrast, the American Empire, whose continuity is ensured by the strong US Dollar and fractional reserve banking system, continues to thrive! Besides, even if gold did have a long track record, other exotic objects have been used as money equally well in the past such as sea shells, cigarette cards, and tulips.
Insurance against monetary collapse
Finally, we arrive at the gold bugs’ morbid interest in the financial apocalypse, which has always been ‘just around the corner’; they gain some sort of thrill from all negative economic announcements, from job losses, from stockmarket collapses, from the onset of recession etc.
Ultimately, holding gold as some sort of insurance from the global financial system collapsing is selfishness of the worst kind. For the cashless financial system to work most effectively, it is essential that all global citizens pool their wealth together and not take steps to keep it outside the banking system where there are no counterparties.
In any event, if the worst happens, you cannot eat gold!
The time for gold confiscation is here. As India’s recent experiment of outlawing high-value bank notes has shown, the population will quickly adapt to change that is made for the common good. We need to take gold out of the hands of fraudsters, money launderers, criminals and gold bugs and make that money works for the benefit of all.
Holders of gold coins etc. should be compensated for the face value of the gold they own. A one ounce ‘American Eagle’ (the most common gold coin) has a face value of 50 dollars, which seems an appropriate standard to apply to all gold holdings.
Let confiscation begin and freedom reign!