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Any reference to government confiscation of personal assets would likely make people things of Communist China or Nazi Germany. The United States government would never compromise the rights of its citizens by taking their personal possessions, right? For investors, news that the US government has twice undertaken the confiscation of gold from its citizens can be an eye-opening surprise.

Twice in the history of the United States confiscation of gold has been utilized. This practice was first used in the 1820s when the government was low on gold after a series of wars had a draining effect on the national treasury. Collectable gold coins were taken, but the remaining gold was collected, purchased at a fixed rate and placed in the national treasury.

The second confiscation of gold occurred after the onset of the Great Depression. After panic created an extreme drain on the treasury, the government again had a confiscation of gold to replenish it. Being on the gold standard at the time, the government needed to have the resources to ensure security of the country’s monetary supply.

These confiscations of gold have created a great opportunity for investors. Although the number of pre-1933 coins still in existence is low, there is a high demand for these coins. Driven by the demand, prices for these coins have skyrocketed.

In addition to their value, these rare coins enjoy an interesting protection. Since pre-1933 coins have never been subject to confiscation of gold, they are considered to be free from the possibility in the future. While today’s gold bullion could be recalled, the country’s precious rare coins don’t have that specter hanging over them, making rare US gold coins a safe and profitable investment. 

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info