US Gold Confiscation Would Be Folly
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
Will gold be confiscated? It could be; desperate governments will take desperate actions. And as the world economy is now slumping into a hyperinflationary depression, unlimited money printing will cause currencies to collapse, leading to a surge in the gold price measured in worthless paper money.
So the first question is: Why would governments punish prudent savers who have gold as protection against the irresponsible mismanagement of the economy and the currency?
Von Greyerz discusses whether the US will confiscate gold; the Americans who hold gold in many countries; today’s automatic exchange of all financial information; how gold is a strategic industry in Switzerland; whether the US holds 8,000 tonnes of gold; central bank and bullion bank gold is lost to the East; Jim Sinclair’s calculation of $87,000 gold; Chinese gold; the EVG view of gold confiscation; and markets.
“Precious metals are in a strong uptrend. The 2011 high for gold in dollars will soon be reached. All other currencies have surpassed the 2011-2012 high in gold in the last two years, and so will gold in dollars. Remember that corrections are always part of a sound uptrend.”
“It is totally irrelevant what price gold reaches in worthless paper money, whether it is Sinclair’s $58,000 or my 18-year-old prediction of $10,000 in today’s money. Time will tell.”
“But it is critical to hold physical gold as protection against a currency system and a financial system which are in the process of falling apart.”