Gold

[biku324]

I will just add a historical fact......

President Franklin D. Roosevelt's gold confiscation refers to Executive Order 6102, issued on April 5, 1933
. This order required most privately held gold coin, bullion, and certificates to be delivered to the Federal Reserve by May 1, 1933, in exchange for $20.67 per troy ounce. Exceptions were made for rare coins and amounts needed for industrial use.

What is left out is Roosevelt effectively devalued the US dollar from 1 Troy ounce = $20.67 to 1 Troy ounce = $35 in 1935. No way could he have gotten Congress to agree to a straightforward devaluation (the $20.67 value made US products noncompetitive in the worldwide Depression). End runs around Congress are hardly new.

 

[MelvinWalker]

Although there are different views on gold, Dave Ramsey says gold is not a wise investment?

Dave Ramsey is a addiction counselor, not an investment strategist.

 

[Jerry in SC]

A $20 gold piece could buy you a nice suit or a Colt's single action a hundred and forty-five or so years ago, still will I think. I have a 2 1/2 dollar gold piece my grandfather carried throughout the Great Depression. He was born in 1869 and vowed to never be broke.

 

[MelvinWalker]

What is left out is Roosevelt effectively devalued the US dollar from 1 Troy ounce = $20.67 to 1 Troy ounce = $35 in 1935. No way could he have gotten Congress to agree to a straightforward devaluation (the $20.67 value made US products noncompetitive in the worldwide Depression). End runs around Congress are hardly new.

The problem with that is, gold is a worldwide market now. An elected official in any one country is going to have a hard time telling India to stop buying physical gold and silver at the worldwide market price.

 

[johngalt]

No one really knows what the compliance rate was for eo 6102, but I've seen estimates that it was around 25%.Today's low premium on pre-33 gold seems to corroborate that compliance was very low. Afterwards, FDR devalued the dollar by nearly 50% when he re-valued gold from $20.67/ozt to $35 (just one of many shenanigans pulled during the depression). Hopefully Americans wouldn't fall for a similar stunt today...

I think the U.S. gold reserve is currently on the books at $42.222/ozt. I've seen speculation that they will revalue the gold as an accounting trick to 'reduce' our debt. The U.S. gold reserve is approx 261 million ozt, which at $42.222 is $11 B. If revalued to the current spot price of approx $3300, that would be about $861 B. Still nothing compared to our debt of almost $37 T. Hence the wild speculation by some of the click-baiters that gold will be revalued to multiples of $10,000 per ozt. Of course that is ridiculous.

 

[MelvinWalker]

If you find a source, late 1920s to 1933 St Guadens $20 circulated gold pieces are $3,316 today and contain almost 1 ounce of gold. If gold goes up in 'melt' value you're good; if the coin becomes more rare because more are being melted you can gain that way as well.

Vermillion Enterprises in Spring Hill Florida has been cracking St. Gaudens and Double Eagles out of PCGS and NGC slabs and melting the coins...They make videos on YouTube every day.

Two weeks ago they bought $330,000 in pre-33 gold and sent every bit to the refinery.