SCAM WATCH: Could My Gold & Silver Really Get Confiscated?

FDR gold confiscation, confiscation proof coins, fdrQ: Gold dealers tell me to buy certain coins, so my investment won’t be confiscated. Is this legit or a scam?

A: Confiscation is not only unlikely; there is not a single record of it ever happening. Dealers claim FDR confiscated all of the gold in America in the 1930s. The truth is, he didn’t confiscate any gold at all when he issued his executive order in 1933. He issued an executive order to nationalize gold and made it illegal for Americans to own more than five ounces of gold personally unless it was a collectible coin or they required it for business (jewelry, dentistry, etc.). However, the gold was not confiscated. It was bought and paid for by the federal government at fair market value.

In 1933 gold was used as money and the dollar was tied to gold. Since the government wanted to make more money without making more gold, they had to nationalize gold and put dollar bills into circulation for the gold no longer backing it. Gold is no longer used as money and we are not on the gold standard. Now, all the federal government has to do to spend more money is to sell treasury bonds to the Federal Reserve central bank, which in turn fires up the printing press and prints additional fiat dollars out of thin air.

The coins that unethical dealers like to sell with this scam are the graded Double Eagles. I actually like Double Eagles, but only at a fair cost. If you can buy these coins for a few percent over the spot price, you’re basically paying for the gold in the coin. I don’t see anything wrong with this type of deal. But don’t pay a giant premium and get screwed just so the dealer can get rich off of your fear.