There are many people who now choose to invest their money in gold and precious metals. Investors are searching for ways to save money due to the global economic crisis and fears of another recession transfer IRA to gold . An asset that can be used to protect your investment funds, gold has been a preferred way of securing wealth.
Many investors now choose to withdraw a part of their 401K/IRA or liquidate completely their retirement accounts. This allows them to move the money into precious and gold IRAs. While this can be a safe investment, some people warn that the government might seize your precious metals. Many people don’t want to think about moving their 401K money to a gold IRA and buying gold bullion.
The truth is that fear instilling investors that the government can and will seize gold is simply a tactic by some of the gold companies to get them to invest in collectibles and numismatics coins. The theory is that numismatic items can’t be taken by the government if the President issues a similar order to the one Roosevelt issued in 1933. This allowed citizens to keep any collector gold coins, and is what unscrupulous Gold Dealers use to push you into buying overpriced collectibles gold coins.
Will The Government Take Your Gold?
There is currently not a similar order that will permit the government seize your gold. The 1933 order also didn’t allow for the government to take gold. It required that citizens surrender their gold. In return, they were paid. Keep in mind, this happened during an era where the dollar was supported by gold. The US dollar no longer has gold backing so the government wouldn’t have any reason to demand that US citizens give their gold back.
You should also ask yourself how many citizens in the United States actually gave their gold back and how many still kept it. If you take the number of pre-1933 gold coins as an indicator of compliance, you’ll see that many people kept their gold. Keep in mind, these were coins made from gold that were used as currency. These weren’t collectible.
Why Government won’t take your gold
Even if the United States were to return to a dollar backed with gold, gold’s price would go up into the stratosphere. The gold standard would require gold to sell at a price of more than $10,000 per ounce for the US. Another estimate puts this price at $40,000 an troy ounce. For the government to inject additional money into the economy, it will need more gold.
Currently, the government simply print more money when it wants to stimulate economic activity. This is what causes inflation. However, it is how things have been since the US began to abandon the gold-standard system.