The Day the Government Seized Americans’ Gold – April 5th 1933

April 5th, 1933, FDR confiscated every gold coin, bar, or certificate and people had to turn in their gold to the Federal Government or else they would face a fine of $10,000 or 10 years in jail. That is about $179,000 in today’s money.  You were able to keep a small amount or some rare coins and those that did give up their gold received about $20/oz.  “Why would the government do that?” asks Ms. Steel.  They did this for the following reasons:

  1. To prevent hoarding.
  2. To devalue the dollar during the Great Depression.
  3. The government set the gold price at $35/oz and pegged it to the dollar.

“But this could never happen again, right?” asks Ms. Steel. “Well tell that to Texas.”

 

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From Goldcore:

Today’s AM fix was USD 1,572.50, EUR 1,205.26 and GBP 1,026.50 per ounce.
Yesterday’s AM fix was USD 1,577.25, EUR 1,212.80 and GBP 1,029.60 per ounce.

Gold fell $6.50 or 0.41% yesterday to $1,572.50/oz and silver slid to $27.12 and finished down 0.22%.


Cross Currencies Table – (Bloomberg)

Alix Steele reports on the 1933 declaration by U.S. President Franklin Delano Roosevelt to have American’s turn in their gold on Bloomberg TV’s “Lunch Money”.

“80 years ago on April 5th, 1933, was the day that the federal government took all our gold and changed the precious metals as we know it,” said Alix Steel.


Currency Ranked Returns, YTD – (Bloomberg)

April 5th, 1933, FDR confiscated every gold coin, bar, or certificate and people had to turn in their gold to the Federal Government or else they would face a fine of $10,000 or 10 years in jail.  That is about $179,000 in today’s money.  You were able to keep a small amount or some rare coins and those that did give up their gold received about $20/oz. 

“Why would the government do that?” asks Ms. Steel.  They did this for the following reasons:

1. To prevent hoarding.

2. To devalue the dollar during the Great Depression.

3. The government set the gold price at $35/oz and pegged it to the dollar.

“But this could never happen again, right?” asks Ms. Steel. “Well tell that to Texas.”

Steel reports, “The state of Texas is contemplating creating a bill to create the Texas Bullion Depository to protect its gold. It will abandon its New York depository and move their gold back stateside.  If the U.S. Federal Government tries to come for their gold the state says it is prepared to fight with the 10th amendment.  Arguing that state’s rights trump any order by the federal government.”


Palladium in USD , 5 Year – (Bloomberg)

The confiscation of individuals and companies savings by the Troika (EU, ECB and IMF) in Cyprus shows how there is a risk of confiscation of all assets – from deposits to pensions funds to stored gold.

This is something we have long warned of and we have consistently said that if confiscation takes place it will be of large stores of pooled gold, ETF custodial and unallocated gold in the banking system and large holdings of gold stored with companies and in countries that are massively indebted.

This shows the vital importance of owning gold either with a AAA rated government that has a tradition of respect for property rights or in a private depository in a safer country such as Switzerland. It also shows the importance of owning and taking personal possession of some gold coins and bars.

Anecdotally it is known that many people did not turn in their gold in 1933. Today, it would be even more problematic and governments would be unlikely to send the police door to door to confiscate the tiny amounts of gold coins and bars held by its citizens.


Platinum in USD, 10 Year – (Bloomberg)

NEWS
Gold extends losses on gains in equities – Reuters

Gold Drops for Second Day as ETPs Decline to Seven-Month Low – Bloomberg

U.S. Pacific Commander Calls North Korea a ‘Clear’ Threat – Bloomberg

Bullion Hub: Dubai’s Gold Trade Exceeds $ 70 Billion – Arab News

COMMENTARY
Video: Texas Wants Its Gold Back – Bloomberg

Video: Gold Price – Manipulation on the Rise? – Business News Network

63% of Dubai Precious Metals Conference delegates think gold is heading towards $3,000 by 2014 – GoldSeek

80% Chance Of 40% Silver Short Squeeze – Zero Hedge

Comments

  1. The government will do whatever they, and their elite handlers deem neccessary. This you can count on.

  2. FDR was a criminal. And millions of dolts still worship him as a saint.

  3. I remember reading about how great FDR was during WWII but was always amazed that people would not call him out on stealing from his own countryman.  Heck, call it the way it is, he was a cheat.  Just remember, all these central bankers and elites will begin to feed on each other when things start falling apart.  It won’t be easy on us little people but human nature says you put enough rats in a small enough place are under enough stress they kill and eat each other.  Hopefully, we can watch it go down on TV as the new SNL and call it ‘Elites Battle to the Death’ on a HD TV near you.

  4. The penalty for ignoring the .gov’s confiscation edict may have been jail and a $10K fine, but how many individuals were actually charged and punished for doing this?
     

  5. Door to door confiscation? I highly doubt it. They can accomplish the same thing without all the manpower expenditure by manipulating the COMEX, LBE and Shanghi exchanges. Or just make it illegal to trade in PMs for any transaction. At that point, MOST people will be too afraid to deal in PMs because they have been conditioned to fear the fed gov. Look how effective the “gold and silver is not money” campaign has been over the years. In 1933, the gov had to confiscate gold because it was a direct competitor with the dollar and there was not the hegemony of the dollar back then. Now the dollar is the reserve currency (not for long, it appears) but digital money is where the financial elite are pushing us since that is the total control of our lives that they are looking for. Bitcoin is actually doing us a disfavor because I believe it is a template for how money will look in the not too distant future. No paper, no metal, no physical whatsoever. Just bits on a computer. It’s closer than you think.

    “aaannndddd…………it’s GONE!”

    • I’m with you Not Sure, BITCOIN smelled like a fox guarding the hen house to me, out of the gate. Nothing happens affecting fiat that is not planned, just like the rocket-ship rise in share price of this ‘scented lure’. It certainly feels like we’re headed to a digital yoke. It would sure make the elite happy to keep trolling with such success. Leading cattle to the slaughter, IMHO.

  6. TX versus the US government, about an even match lol

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