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NAILING DOWN THE LID ON GOLD CONFISCATION’S COFFIN
On January 4, 2005 I received the following release from Chris
Powell, Secretary-Treasurer of GATA (Gold Anti-Trust Action
Committee,
www.gata.org. -- FS
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” embraces 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 here’s proof that numismatic coins confer no immunity from
confiscation because the government has no power to confiscate
anyway, from their own lips. -- FS
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