Gold Confiscation: How Big a Threat? Part 2.
On January 4, 2005 I received the following release from Chris Powell, Secretary-Treasurer of GATA (Gold Anti-Trust Action Committee, www.gata.org.)
In a letter released today in response to an inquiry from GATA, the U.S. Treasury Department declared that it has no statutory authority to confiscate gold. GATA made the inquiry last fall through the office of U.S. Rep. John B. Larson, Democrat of Connecticut, co-sponsor with U.S. Rep. Ron Paul, Republican of Texas, of legislation to require the Treasury Department to obtain the approval of Congress before intervening in the gold market.
GATA's inquiry was prompted by enduring fears and rumors among gold investors about the legal security of their gold, prompted in part by the U.S. government's attempt in 1933 to confiscate monetary gold by presidential decree.
The Treasury Department's letter was dated December 17, 2004 and was received today by Representative Larson's office. The letter was signed by Roberta K. McInerney, the department's assistant general counsel, and addressed to Michael Kirk, Representative Larson's press secretary. The letter reads as follows:
Dear Mr. Kirk: I am writing in response to your e-mail of November 29, 2004, which forwarded a question from a constituent of Congressman Larson's as to whether the Treasury Department could force the redemption of U.S. gold bullion coins at face value, or the surrender of foreign bullion coins.
In Public Law 97-258 (Sept. 13, 1982), Congress eliminated a statute (12 USC 248 n) which had allowed the secretary of the Treasury to require individuals and others to deliver to the Treasury gold coins, bullion, and certificates. As a result, this statutory authority no longer exists.
I hope this information is helpful. Please let us know if you have further questions or need additional information.
Roberta K. McInerney
Assistant General Counsel
(Banking and Finance)
Department of the Treasury
Washington, D.C. 20220"
(End GATA release. To subscribe to GATA's dispatches, send an e-mail to: gata-subscribe@yahoogroups.com. The Moneychanger strongly recommends you visit GATA's website and support GATA with a contribution.)
Only the word "vindication" conveys how this release exhilarates me. For years I have warned consumers that no statute or regulation empowered the government to confiscate gold, so they were wasting money buying expensive numismatic coins to protect themselves from confiscation. At last the US Treasury itself admits that it lacks any authority to confiscate. You might buy numismatic (collectors') coins because numismatics is a fascinating hobby, but don't buy them as a gold investment. Why? Numismatic coins usually carry commissions of 25% or more, compared to bullion coins with a 3.5% commission or less. The huge numismatic spread between buy and sell means that gold has to gain 25% or more before you break even, let alone make a profit. Now heres proof that numismatic coins confer no immunity from confiscation because the government has no power to confiscate anyway, from their own lips.
About This Site
