Wednesday, April 13, 2016

If governments force us to go Cashless that could threaten physical Gold holders

If they introduce a cashless society, I think it's going to be very likely that the government will try to take the gold away from you. Now, in 1933, this happened and then the government collected the gold and they paid you $20 an ounce. After they had collected all the gold, they revalued it to $35 an ounce. Nowadays, I'm not sure whether that would fly, but one thing is very clear. In the 1930's, it was easier to hide gold. You could buy it and essentially put it a hole in your car or a safety deposit box at home and so forth. Nowadays, with metal detectors and all kinds of devices, it will be difficult to hide gold. Equally, if you walk through an airport, probably it's easier to hide some stamps and diamonds than to hide gold, which would respond right away to a metal detector.

So I think it's important for people to think, "If I have a lot of gold, where do I want to store it?" 

I would say probably gold stored in Asia is in a better, safer place than stored in the U.S. or even in Europe. Mario Draghi is basically working with the Fed so if they collect the gold in America, it's likely they will do the same in Europe.

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