Are you one of those people that has bought gold or silver in the past six years or so assuming it will keep you safe from the ravages of what could be an Obama hyperinflation? Over the years I have spoken to quite a number of people I know that say they are putting at least some of their wealth aside in gold “just in case” of the economy falling apart. I have always been amazed at how so many of these people really do not understand the risks involved. Yes, I think it is wise to keep some of your net worth in gold if you have it to put aside. What I see is the failure of others to learn from history. We have a president that loves executive orders. We have an economy that is hovering on the edge at times, depending on who you ask.
Most people these days are putting their money in gold that is “on deposit” with a gold brokerage firm. Just as with shares of stock, gold is kept on deposit with a broker that usually has it all sitting in a vault on your behalf. Others have gold, silver and diamonds in safe deposit boxes across the country so they can get to their wealth with just a drive to the bank should our economy fall apart.
What could possibly go wrong in that scenario?
Barack Obama repeating history from 1933.
I rarely bring up the year 1933 to those people, but with Barack Obama’s overwhelming use of totalitarian executive orders and his use of the IRS to push his agenda, it’s time for a primer on Executive Order 6102.
Most people have never heard of it. It was issued in 1933 as the Great Depression was well underway. President Franklin D. Roosevelt took office on March 4, 1933. Five days later, FDR issued Executive Order 6102. It was stunning in its use of presidential executive authority in that it effectively banned gold and silver sales and significant ownership within the United States.
Executive Order 6102 – March 9, 1933:
By Executive Order Of The President of The United States, March 9, 1933.
By virtue of the authority vested in me by Section 5 (b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, in which Congress declared that a serious emergency exists, I as President, do declare that the national emergency still exists; that the continued private hoarding of gold and silver by subjects of the United States poses a grave threat to the peace, equal justice, and well-being of the United States; and that appropriate measures must be taken immediately to protect the interests of our people.
Therefore … I hereby proclaim that such gold and silver holdings are prohibited, and that all such coin, bullion or other possessions of gold and silver be tendered within fourteen days to agents of the Government … for compensation at the official price, in the legal tender of the Government.
All safe deposit boxes in banks or financial institutions have been sealed … All sales or purchases or movements of such gold and silver … are hereby prohibited.
Your possession … and/or safe deposit box to store them is known by the government from bank and insurance records. Therefore … your vault box must remain sealed, and may only be opened in the presence of an agent of the Internal Revenue Service.
By lawful order …, the President of the United States.
Did you get that?
The IRS had to be present for you to even access your safe deposit box at a bank after this order.
Do YOU Trust Barack Obama?
Does anyone for a second think that Barack Obama would do any LESS than FDR?
Does anyone think that Barack Obama would never require us to open safe deposit boxes only in the presence of an IRS agent?
Precedent is set. Why would anyone trust Obama to not follow in the foot steps of FDR? The government won the only serious challenge to EO 6102 in 1933, and it was never successfully challenged after that. Why would any one challenge it? If they did not turn over the gold by the deadline, they were felons.
What should you do?
I am not going to give you advice. I will answer for what I would do. I would not let any broker or any institution have my gold holdings on deposit for me. I don’t own gold ETF’s, as there is simply no way to know what would happen to these in the event of a similar executive order from Barack Obama. I would not leave such gold deposits in a safe deposit box at a bank.
My father’s uncle was a banker in the 1930’s through the 1960’s. He went through some of this. I know for a fact back then that friends bankers got into their boxes after hours and were able to pull their gold out. Others were blocked from access except when “the revenue agent” as they called them then was at that particular bank. This was in Galveston, Texas. The way I heard the story (from my father) was that one agent would go to one bank a day and come back about ever ten days to the same bank. At the end of the wait time, any box not opened in their presence was opened by a banker and the revenue agent. Everything of value was inventoried – not just gold and silver.
Let’s hope Barack Obama does not go down this very slippery road. I don’t trust him. I know he could. I would even bet he has drawn up contingent plans to do this.