• 525 days Will The ECB Continue To Hike Rates?
  • 525 days Forbes: Aramco Remains Largest Company In The Middle East
  • 527 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 927 days Could Crypto Overtake Traditional Investment?
  • 932 days Americans Still Quitting Jobs At Record Pace
  • 934 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 937 days Is The Dollar Too Strong?
  • 937 days Big Tech Disappoints Investors on Earnings Calls
  • 938 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 940 days China Is Quietly Trying To Distance Itself From Russia
  • 940 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 944 days Crypto Investors Won Big In 2021
  • 944 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 945 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 947 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 948 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 951 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 952 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 952 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 954 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Confiscation of Gold - Then What? Part 5

Special Report

Readers may not agree with our conclusions on the confiscation of gold, but we emphasis this reality. If we are wrong you will still own your gold. If we are right and you have not taken the right steps to guard against confiscation and the personal dangers to you individually, you will lose your gold if not suffer the penalties the "Gold Confiscation Order" brings with it.


What if the Authorities order you to repatriate it?

Consistent with the desire of the authorities to reap as much gold from their citizens as possible, a "Gold Confiscation Order" is likely to require citizens to disclose their ownership of gold as well as require gold dealers, custodians and the like to disclose their client's names and amounts of gold owned under threat of penalties. Once they have these details, they will record who owns gold outside their Jurisdiction, but is a citizen of the country. With little effort citizens who own gold offshore will become transparent to them.

Inevitably they will require its repatriation back home or the transfer of its ownership to the state.

So what does one do? If it is owned directly in your name and stored overseas, there is nothing you can do except repatriate the gold. Failure to do so will open you up to penalties such as came with the "Gold Confiscation Order" in 1933 [10 years in prison and or $10,000 [in 1933] in fines].

Some may expect to be forced to sell their gold, but this would make the exercise pointless, because the authorities can print as much money as they like through Quantitative Easing. No, they will want just gold, at that time.

That's why you should own your gold in a way that ensures it cannot be repatriated or transferred, even if you were under pressure from your government. But more than that you must be able to assure your government that you cannot repatriate it or transfer it to them in a way that does not leave you culpable. [There is a way. Contact admin@StockbridgeMgMt.com for information]. Ideally this means if owning gold should continue, you'd able to sell it when you want in the quantities you want, whenever you want.


What if the Custodians banks of your gold ETF are told to pass your gold to the Authorities?

The first question an investor should ask when he believes he owns gold in an E.T. F. is does he own that gold or is it owned by the E.T.F.? The E.T.F. issues shares against the gold it owns. It is 'unallocated gold' so cannot be directly linked to an individual investor. In fact, should the E.T.F. for some government inspired reason go into liquidation, the investors who own shares representing gold in the E.T.F. will be unsecured creditors of the E.T.F.

The Custodian [the largest of which is the bank H.S.B.C.] bank will without hesitation hand the gold it holds for the E.T.F. over to the government or freeze it until the E.T.F. agrees to hand it to the government in compliance with a "Gold Confiscation Order". The shareholders are likely to be compensated with government Treasuries, or the like in payment, at market related prices, at the time. The prices of those Treasuries are likely to be falling at the time.

The bottom line is that you do not own gold held by a gold E.T.F. Consequently you will be powerless to claim the gold that your shares represent.

We know of no other gold storage system that effectively blocks the confiscation of gold and the threats to the individuals, from government, that beneficially own the allocated gold, as does the twin scheme of Stockbridge Management Alliance Ltd. under the guardianship of the Ultimate Gold Trust S.A., a Swiss company. (For more information contact admin@StockbridgeMgMt.com)


Is there really a danger of gold being confiscated?

Sharps Pixley a London Gold dealer has reported that:

"In the Basel III, gold has been re-rated from a Tier-3 asset to a Tier-1 asset, or "zero-risk" collateral. This means that banks can decide to buy gold instead of sovereign bonds to fulfill the rise in the Tier 1 asset requirement. The Shanghai Gold Exchange has just started a trial on gold inter-bank trading in order to increase the liquidity and flow of gold in China."


This brings the concept of the confiscation of gold, one step closer to a reality that will come upon us as a surprise!

So, we believe that there is! This is part of what we said in the Introduction to this series:

"Importantly, Central Banks and the Authorities possibly will not wait for the monetary system to crash before acting to ensure they have enough gold to keep the monetary system working. They will act well ahead of that time to make sure they avoid a collapse and attempt to engineer the event so as to catch gold investors by surprise, removing their chances of making any contingency plans. With their prime objective being to shore up confidence in the monetary and banking system, they could not afford to signal the market about their intentions beforehand. We are not just talking about the U.S.A. but many other countries that may precede or follow the U.S. in these acts. The trouble is that the gold they 'acquire' maybe yours. Wisdom demands that the banking crises we have seen since 2007 don't happen again, because this time round they may well collapse. Prudence demands that investors don't take that risk but act before they can't. The risks of not guarding against this eventuality are enormous and the rewards of guarding against it are massive. If it doesn't happen you will lose little if anything. If confiscation does happen then you lose a lot. It's a matter of risk and reward!"

We believe that the confiscation of gold for this purpose is a very real and present danger and have organized a way to protect against that eventuality.

 


Contact us through www.GoldForecaster.com or admin@Stockbridgemgmt.comfor more information
Subscribers will see this series first on the www.GoldForecaster.comwebsite, ahead of general release. Get the rest of the series.
Subscribe @
www.GoldForecaster.com
www.SilverForecaster.com

 

Back to homepage

Leave a comment

Leave a comment