After the Banning of Gold...

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This is a continuation of the article When Gold was Banned in the US.

To protect the little money they did have, those Americans who did still have it during the Great Recession hoarded gold, making it more challenging for the government to acquire gold and begin printing money to boost the economy.

Most people have moved on sooner or later. Meanwhile, it appeared to be a wise choice to outlaw the ownership of gold.

This system functioned fairly flawlessly in the beginning. The United States was significantly less affected by World War II than Japan and Europe were. Because there was such a large demand for US goods, it only made sense to adopt the US dollar as the accepted global currency.

In the 1960s, when the economies of Europe and Japan started to expand, the need for US dollars decreased. as the competitiveness of goods from Europe and Japan increased The Federal Reserve nevertheless kept printing money despite the fact that its gold reserves were barely growing.

This ultimately resulted in a scenario where foreign nations had more US currency than gold that the Federal Reserve had. Foreign nations had the legal right to swap US dollars for gold, but because the US dollar was valued at $35 per ounce of gold, doing so would cause the federal reserve to run out of gold and, in effect, declare bankruptcy.

The Federal Reserve is forced to start over.

To keep up with the money printing, more gold was required. However, it was unable to simply outlaw gold globally and hoard all of the wealth this time. As a result, the United States decided to implement the gold standard's abolition as the sole course of action.

The United States would no longer exchange dollars for gold, according to President Nixon's announcement on August 15, 1971. He gave Secretary Connelly the go-ahead to temporarily halt the conversion of the dollar into gold and other reserve assets, save for specified amounts and circumstances determined to be in the best interests of the United States and monetary stability.

As soon as the US dollar was no longer backed by gold, there would be a sudden explosion in inflation as a result of consumers significantly losing confidence in the US dollar. The harm had already been done, thus there was no longer any justification for the Federal Reserve to want to accumulate all of the gold in the country.

On December 31, 1974, President Ford would sign Executive Order 11825 revoking the earlier Executive Order that President Roosevelt had enacted 41 years earlier. Congress would enact laws on the same day permitting Americans to hold gold once more.

A few years later, in 1977, it would truly eliminate the president's power to control gold unless the United States was at war.

The Gold Bullion Coin Act was passed into law by President Reagan on December 17, 1985, allowing the US Mint to create gold coins from "newly mined domestic sources." The most popular gold coin in circulation today is the gold American Eagle.

Therefore, the question still stands: Could it happen again? The future? Of course it's feasible; it's been done, and when under pressure, governments just amend the laws.

The bottom line is there was confiscation. Although it was overturned, it might yet occur in the future. Laws may change and do.

Sources:
Historian, Federal Reserve, Forbes, Center Rule for Law, UBSB, US Gold Bureau

All photos were taken by me with my iPhone.


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@silversaver888

I am not a financial adviser. This article is not meant to be financial advice. My articles on cryptos, precious metals, and money share my personal opinion, experiences, and general information on cryptos, precious metals, and money.
All photos, gif, and video were taken by me with my iPhone, unless specified.

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Therefore, the question still stands: Could it happen again? The future? Of course it's feasible; it's been done, and when under pressure, governments just amend the laws.

For me the question is not if they will do it again without when they will do it?
Who would have predicted what has happened in the last 3 years? I don't think anyone honestly.

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Sadly it "may" happen again, the world is a crazy place. And becoming more dangerous... Too many dictators and crazy people running countries. I'll keep on collecting silver and gold though, a great source of wealth!
!LUV

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I remember when they revoked the executive order and you were once again allowed to own Gold. Up to this point, the only way to personally buy and own Gold @silversaver888 was to Mail order Mexican Gold pesos!😇
My first Gold coin was a five Peso Gold coin that I ordered through Coinworld magazine, around 1970!😇

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It was still illegal to own gold in 1970! It's good you were not caught!! You were brave, @silvertop😁
!PIMP

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(Edited)

I often wondered about that back then @silversaver888 ! 🙄
One of my friends tried to tell me that it was only US gold and that there was a loophole with Mexican gold in coin form....
I found this on Wikipedia.....
"The order specifically exempted "customary use in industry, profession or art," a provision that covered artists, jewelers, dentists, sign-makers, etc. The order also permitted any person to own up to $100 in gold coins, a face value equivalent to 5 troy ounces (160 g) of gold valued at approximately $10,000 in 2020. The same paragraph also exempted "gold coins having recognized special value to collectors of rare and unusual coins", which protected recognized gold coin collections from legal seizure and likely melting."

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Buy your gold while it's still un-TEMPORARY!

Always, with love 🤗🌺❤️

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Even though it's difficult to imagine, the United States has a very real history of gold confiscation, and it's crucial to be aware of the economic forces that might lead a president to decide to take such action once more.
Keep on stacking, sis.
Hugs and kisses🤗
!LADY🥰🌺🤙

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Ms. Saver @silversaver888
At the Zoo

!LUV

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Printing money is always bad for economies, you must have something physical in your reserves such as gold , silver etc etc

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It's alarming to hear individuals say, "We can always print more money." That way of thinking was what led to today's growing deficits and the dollar's falling purchasing power, first under FDR and subsequently under Nixon. Printing more money has a very real risk of raising inflation rates that further erode the purchasing power of the dollar, threaten the savings of every American, and jeopardize the well-being of those on fixed incomes like Social Security.
!WINE

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One effect of removing gold as money and using currency instead is the ease with which government could implement policies which encouraged war making. It's hard to go to war with no money, and gold being money was in limited supply.

When USD went from being specie to the Federal Reserve Notes we know today, money was printed at an unprecedented rate. The charts for USD went hyperbolic after 1971, and the value of USD went into free fall then also.

It's hard to spend money we don't have, and gold as money ensured that stayed the case.

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Thank you for your meaningful comment on my article!
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!WINE

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I don’t believe that Fort Knox has anywhere near the gold they have claimed it has. There’s no way they could get anyone to turn in their gold ever again.

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Reports on the Treasury's gold holdings are published every single month. You can find tables that date back to 2012. 98.7% of the entire amount of gold is still kept in deep storage, remaining constant over that time. HERE
Monthly reports on the treasury's gold holdings are published.
In Congress, this has previously come up. Interesting testimony was given in 2011 before a House financial committee on gold reserves. Check out page 9 of the report for the gold reserves, though. HERE
!WINE

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I don’t believe those numbers are real numbers.

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I have no idea if it is true or not. Since 2019, they've been having yearly audits. I read somewhere that it was because of Ron Paul.

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I would love to see them try, that's a redline for me!

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(Edited)

Ms. Saver @silversaver888

!LOLZ

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The last inventory of Ft. Knox was somewhere back in the 1950's, I think. I suspect that there is little to nothing in it. I know back some time ago, Germany wanted the gold that had been sent to there for safe keeping, back. The government stuttered a bit and finally said it would take several years to give it back. My summation is that if they truly had it, why not just give it all back? That's why I think there's not so much there anymore.

Thanks for sharing sis. I was a kid during the 70's and being a teenager, this was nowhere on my radar. Very informative.🤗😘💖🌸 !LADY

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The United States would no longer exchange dollars for gold, according to President Nixon's announcement on August 15, 1971. He gave Secretary Connelly the go-ahead to temporarily halt the conversion of the dollar into gold....

(Emphasis added)

52 years and counting is a long time in human years for something to be temporary. Sadly, this is standard operating procedure for a centralized government and for a federal government transitioning into a centralized nation-state.

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(Edited)

Ms. Saver @silversaver888

100oz 1974 Pacific Bullion Company Honolulu Hawaii Vintage Extruded Silver Bar In Original Factory Seal

I always knew there was a Hawaii connection to Silver Stacking.............
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As a very limited mintage made in 1974 for Pacific Bullion Co of Honolulu Hawaii these extruded vintage silver bars are rare to come by. Believed to have been made at the same factory of California Crown Mint at the time. Bar is in exceptional shape due to still being in the factory seal with toning peaking through openings in the seal proving the age & authenticity of the bar.

!LUV

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People were smart enough not to give up their Gold at least many were. My grandfather kept his coins. Unfortunately my grandmother sold them in the nineties though! But I hear from many they just kept their coins. I think many have an image of government going door to door which never happened. On deposit at banks it was taken for the $20 an ounce but houses weren’t searched. People today overall aren’t as smart though. Some did give it up but it was them doing so based on propaganda it was a patriotic move. Those who shut up and kept their Gold had no issue.

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I want to look into this more I want more details, they just take the gold or did they compensate the previous owners

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