Some people have misread my posting on an observation in Spain. The retail sale of gold coins was virtually nonexistent in Spain. This is not a shortage of gold. In Italy, bullion coins were being sold in stores. It is France that is after gold coins, demanding no cash sales and reporting on buyers and sellers. Even the rare coin shows have left Paris for the dealers refused to comply with such reporting. The French were driving to Belgium to deal in gold and the French government was complaining about that.
Even the banks are requiring explanation for every deposit in an account to get a mortgage in the USA. Gold refiners are now required to report to the U.S. government every shipment of gold, reporting where it comes from and where it went.
They seem to be keen on watching gold bullion. The question is why? That seems to be clear from the standpoint of eliminating any alternative if they seek to move toward a cashless society. Look at the former speaker of the House, Dennis Hastert, who has been charged with lying to federal agents and evading financial reporting requirements called STRUCTURING, reportedly while attempting to conceal past sexual misconduct. This is the same money that you have paid taxes on, but you are withdrawing it in cash to pay off someone else. So you withdraw cash in amounts under $10,000 to avoid reporting. So this is NOT tax evasion; this is failing to tell the government that you have paid someone in cash and they didn’t pay their taxes.
So can they make gold illegal? Only a fool would say no. If it is illegal to pay someone in cash, they will make it illegal to pay someone in gold. This is the direction we are headed in. This is not a personal attack on gold. Sure, the gold promoters will say I am wrong for they are afraid it might reduce the whole idea of buying gold as an alternative to dollars. But this is the world we face. They are closing in the net from every possible angle. It is not just gold. This is hunting spare change in any form.
Does it mean you should not buy gold when the low comes into play? No. But it does mean there may be a risk to owning gold as it will be made illegal to conduct business. Keep in mind that they cannot imprison you for NOT paying your taxes. That would be unconstitutional. They imprison you for failing to tell them you owe taxes. It is the failure to file – not pay.
In this respect, silver coins may be a hedge. Gold coins, as in $20 gold pieces rather than bullion coins, may be better. Anything that distinguishes what you have from just bullion.
Will they confiscate? History repeats because the passion of man never changes. We have to understand that this is an economic meltdown. They will not go quietly into the light. They will scream and rage all the way.
