Most websites that are about gold coins are usually selling the coins — and they’re filled with scams. The most common scam seems to be a selling point that’s on nearly every gold coin website, including the top results on Google.
Most people looking into gold know that back in 1933, president FDR signed executive order 6102 that effectually confiscated all gold coins, gold bullion bars, and gold certificates. The confiscation was justified through “compensation” of a little over $20 per troy ounce of gold. The gold was then taken by the federal government and sold to international investors for $35 per troy ounce. Economic totalitarian executive orders like these were common for FDR, who is one of the most power-hungry presidents in the United States’ history.
But what about the scam? The scam starts after the gold dealer explains the story about FDR confiscating gold. Then the dealer claims that gold confiscation is still a risk. While this is partially true, what they say next is a blatant lie:
To get around the threat of gold confiscation, the dealers claim, you just have to buy pre-1933 gold coins. These collector coins, it’s said, will never be confiscated because the president “doesn’t have the authority” to confiscate gold coins before 1933. A few thoughts about this:
- He Doesn’t. But then again, he didn’t have the authority to confiscate the other coins he confiscated back in 1933. He…might. Why wouldn’t he? If the courts believe the government can confiscate gold coins, then what on earth does 1933 have to do with anything? The short and simple answer is: nothing.
- The 1933 claim is simply made so gold dealers can peddle old gold coins for more than they’re worth. This is just another example of why you should always take what people say with a grain of salt, especially if they’re selling you something.