What is Legal Price of an Ounce of Gold?

The big question that everyone who holds gold is asking is “How much will they pay me for an ounce of gold if they confiscate it?” There are three potential answers to that question. The old saying goes, past performance is never a guarantee of future results, but a darn good indicator. If we analyze the facts that have occurred in the past we could somehow analyze what could happen in the future.

First of all, when the original gold confiscation happened in 1933, the real price for an ounce of gold was $35.00/oz yet individuals who were forced to forfeit gold only received $20.67/oz. The reason why they paid that sum in particular is because the $20 gold coin back than had slightly less than an ounce of gold in it and all we received was the face value of coins.

If we take that example and fast forward it to today we could see the following happen. The Government outlaws the ownership of gold, cancels the COMEX division of New York Mercantile Exchange, and locks everyone in at a certain dollar amount, maybe $1,000/oz. They say that everyone has to turn in their bullion by that date and anyone caught with bullion after that will face a judge under law. In the meantime they remove all the government speculation from the gold market and the price of gold runs to $4,500/oz. Guess who just lost $3,500?

The question however still remains how much will they pay us per ounce of gold upon confiscation. Well let’s look at another part of U.S. history to maybe find the answer we are looking for. In 1979, there was a shipment of around thousand ounces of gold stolen from La Guardia Airport in New York, the shipment belonged to Franklin Mint, and was transported by Trans World Airlines. After a big legal battle Supreme Court ruled in 1984 in Franklin Mint v. TWA that Trans World Airlines, was only liable to pay $42.22 for every ounce of gold that was stolen which was far below the market value at that time but was considered as the official price of gold at that time. What if they only pay us 42.22 for every ounce of gold they confiscate from us which is the official price of gold today as well. Will they give us a little bonus and pay us $50/oz if we own American Eagles, since that’s the face value. Well legally they could do that.

Finally, the most outrageous one of them all is that under the Emergency Powers Act, if the President declares economic state of emergency the government has the right to confiscate all of your gold and silver bullion, any stocks, bonds, mutual funds, ETFs or shares that you might have in gold and silver explorations companies and pay you NOTHING. They have the right to nationalize the entire gold industry except collector gold, industrial gold, and jewelry gold.

I encourage you to purchase the gold that would not be subject to confiscation or scrutinized by the government in any way. A proper position is gold is also private and stores the value of your hard earned labor rather than the fiat paper money system that is being printed away.