Is There A Downside To Owning Gold?
The quick answer to this question is YES. And here are several reasons for not buying and/or owning gold.
1. There is a cost to holding gold. Not only do you have the expense of a safety deposit box for storing your gold, but you also lose the potential interest that you might have gained by having that money in other investments.
2. There is a risk in owning gold because all the crooks - both those in our government as well as the ones in the private sector - would like to get their hands on your gold!
3. The government bureaucrats will regard you as being peculiar because you are not "acting" in accordance with the script which goes like this: Buy a Treasury Bill or a share of Microsoft, and you're a fine citizen. But, buy an ounce of gold, and "there must be something wrong with you."
Some people think that the greatest risk of all in owning gold is confiscation by the government bureaucrats, and they use the events of 1933 as their evidence. But I believe this is unlikely since gold is not circulating monetarily in our economy, plus the fact that those who own gold are thought of as wackos!
But for the record, let's examine just what did happen back in 1933. It was on April 6th, 1933 that then President Franklin Roosevelt demonitized the $20 gold piece, thus making it appear to no longer be money. And the average "Joe sixpack" was told that since the $20 gold piece was no longer considered money, he should therefore bring it in to his local bank and he would receive a $20 bill for it.
In short, this amounted to GRAND THEFT on the part of our government!
Then in January of 1934, they passed the Gold Reserve Act which changed the value of an ounce of gold from $20.67 to $35... Thus, "somebody" nearly doubled their money overnight!... Any guesses as to WHO that might have been?
It is interesting to note that back before this GRAND THEFT took place, a million dollars would have purchased 50,000 $20 gold coins. And one can only wonder as to how many coins were "legally purchased" and then sent abroad to Swiss banks - because today, some 73 years later, these U.S. gold coins are still available from European banks!
It is doubtful that any American citizen was ever prosecuted for not turning in their gold coins, but most poor schnook citizens at the time DID turn in what few gold coins they possessed just because they were told to do so by the government bureaucrats.
What most people do not understand about gold is the fact that gold is synonymous with freedom, and the politicians we have today are not interested in expanding the freedom of their vassals, i.e., you and me.
Oh, one final point... I should also mention the fact that there is a greater danger to be faced if you DON'T own any gold. It is the reality that NOBODY who buys gold has ever ended up in the Poor House!
* * * * *
1. There is a cost to holding gold. Not only do you have the expense of a safety deposit box for storing your gold, but you also lose the potential interest that you might have gained by having that money in other investments.
2. There is a risk in owning gold because all the crooks - both those in our government as well as the ones in the private sector - would like to get their hands on your gold!
3. The government bureaucrats will regard you as being peculiar because you are not "acting" in accordance with the script which goes like this: Buy a Treasury Bill or a share of Microsoft, and you're a fine citizen. But, buy an ounce of gold, and "there must be something wrong with you."
Some people think that the greatest risk of all in owning gold is confiscation by the government bureaucrats, and they use the events of 1933 as their evidence. But I believe this is unlikely since gold is not circulating monetarily in our economy, plus the fact that those who own gold are thought of as wackos!
But for the record, let's examine just what did happen back in 1933. It was on April 6th, 1933 that then President Franklin Roosevelt demonitized the $20 gold piece, thus making it appear to no longer be money. And the average "Joe sixpack" was told that since the $20 gold piece was no longer considered money, he should therefore bring it in to his local bank and he would receive a $20 bill for it.
In short, this amounted to GRAND THEFT on the part of our government!
Then in January of 1934, they passed the Gold Reserve Act which changed the value of an ounce of gold from $20.67 to $35... Thus, "somebody" nearly doubled their money overnight!... Any guesses as to WHO that might have been?
It is interesting to note that back before this GRAND THEFT took place, a million dollars would have purchased 50,000 $20 gold coins. And one can only wonder as to how many coins were "legally purchased" and then sent abroad to Swiss banks - because today, some 73 years later, these U.S. gold coins are still available from European banks!
It is doubtful that any American citizen was ever prosecuted for not turning in their gold coins, but most poor schnook citizens at the time DID turn in what few gold coins they possessed just because they were told to do so by the government bureaucrats.
What most people do not understand about gold is the fact that gold is synonymous with freedom, and the politicians we have today are not interested in expanding the freedom of their vassals, i.e., you and me.
Oh, one final point... I should also mention the fact that there is a greater danger to be faced if you DON'T own any gold. It is the reality that NOBODY who buys gold has ever ended up in the Poor House!
* * * * *
posted by Bob Moser at
3:00 PM
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