In today’s post I want to talk about one issue that has been talked about in stacking circles and continues to get attention, and that’s whether the government can and will confiscate your precious metals.
So, my belief is pretty simple, yes, they can, but I do not believe they will. And my reasoning is simple, it’s simply a matter of logistics.
See what we have to understand is that the only types of situations where this could happen would be scenarios where the government needed resources. It doesn’t matter if it’s an economic depression, or for war or what the purpose, the bottom line is that the government would need real wealth. They would need this wealth to stabilize the economy and to get the trust of the people (Reasons To buy Silver Bullion?).
Now it’s my belief that if a situation like this was to occur, it simply wouldn’t make sense to go after individuals but instead to go after entities. For example, why would the government send agents to your home to confiscate a few hundred ounces of silver and a few ounces of gold? Institutions would be targeted first, and by institutions, I mean the type of business holding gold IRAs or really anything that has precious metals. I think the government could go in and essentially force a buy at market price. That way, there getting massive quantities of gold and silver with the fewest resources possible. And holders of these accounts would get paid out at market price.
Do I believe something like this – referring to business pm confiscation could happen? I think if things get bad, it’s definitely possible. It’s just my opinion, but a situation with hyperinflation or where economic confidence plummets, (What Could Cause More Bank Runs?) the government might need to get big sums of previous metals. It might sound farfetched, but all the data shows debt is spiraling out of control (Read about the debt spiraling here). The only reason we’ve been able to make it this long is that both monetary and fiscal policy has allowed tons of money into the economy.
Coming back to individual gold and silver confiscation, for the reasons stated earlier I don’t see this as something that will happen to individuals. They’ll go after the big players and big holders if it ever comes to that (Is the US in a silent recession?).
