For centuries people have turned to precious metals as a reliable store of value in a crisis. The safe haven of all investment vehicles according to some.
But ownership is not quite as risk free as you may think. In fact there are 2 ways to invest in precious metals that often result in a person losing it all.
Others will have it taken right off of them. Once you know these landmines it is pretty easy to protect yourself but few take the time to do so.
You see, I have been studying precious metals, investing, and banking systems for over 10 years. During that time, I have interviewed dozens of experts in the field, gaining inside knowledge that you will benefit from.
So here are the two most likely ways a precious metals investor will lose it all.
1. Civilian Theft.
If you own any asset you have to be concerned about the theft of that asset. The more you have, the bigger the risk. The more people that know you own it, the more dangerous it is.
Rule number one when owngin metals. NEVER TELL ANYONE, you have precious metals at your home, office, grandma’s house or anywhere else. Repeat…. Never tell anyone! Ever!…. that you have metals at home. When the economy crumbles, a passing mention of it 2 years ago will be remembered. Don’t think it can happen? Just ask the people in the former U.S.S.R. how quickly acquaintances, neighbors, friends, and even family members turned on one another for a simple watch or necklace when they were starving and needed something to use as bribery.
2. Government theft.
Throughout history, governments have changed laws, and even made them retroactively apply, to confiscate wealth from its citizens.
Should an economic collapse occur, it is entirely possible, even likely, that your government may, either tax the profits on metals at such a high rate that the profit is all, or partially eroded, or simply demand that you sell your gold to the government at a price they set regardless of the market price.
In 1933, President Franklin D. Roosevelt (FDR) issued Presidential Proclamation 2039, forbidding “the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States.”
The order criminalized the possession of monetary gold by any individual, partnership, association or corporation under penalty of $10,000 and/or up to five to ten years imprisonment. The Order was signed after numerous “bank runs” and bank collapses. Rather than identify the real problem, the fractional reserve banking scheme orchestrated by the Federal Reserve, Roosevelt obediently followed the instructions of the international banking masters:
He simply blamed those nasty “Gold Hoarders” for the countries woes. In an incredible display of totalitarianism, he banned the private ownership of gold, and demanded all citizens turn in their gold to the government, at a price determined by government, well below the market price. Take a look for yourself:
For several decades private ownership of gold remained illegal. This is a reminder that people will allow incredible injustices when they are scared.
In the midst of a great depression, they will sacrifice their freedoms and liberties to anyone promising them an easement to their suffering regardless of the merit of the argument.
Today, people are beginning to call our current economic situation “The Greater Depression.” That only means more fear, more woes, more suffering. The People of the United States will again allow their governmental leaders to pass insane laws, which violate everyone’s rights, and take away everyone’s freedom. Don’t believe me? Its already happening. Here are just a few examples in the last 10 years:
• Bush’s Executive Order allowing the National Security Agency to use phone taps to eavesdrop on U.S. Citizens without a warrant, review, or probable cause (Violates 4th and 5th Amendments).
• Obama’s National Defense Authorization Act (NDAA), granting the President the power to send American troops to detain and indefinitely imprison American citizens without being charged with a crime or tried on the merits of those charges (Violates 4th, 6th, and 8th Amendments).
• Obama’s “Kill List” of suspected terrorist (one 17 year old girl). Obama has been utilizing drones, or unmanned aerial vehicles, to execute his Kill List. (Violates 4th, 6th, and 8th Amendments).
Next on the chopping block? The Internet… yep, their going after our First Amendment Rights with Bills like the “Stop Online Piracy Act” (SOPA) and “Protect IP Act” (PIPA). Soon, you won’t even be able to get online Reports like this one…
The Federal Government has shown its willingness to trample on our rights and liberties. What’s to stop them from going after your gold to pay for bigger government? Nothing.
By learning the dangers of big government, and what really caused the coming financial collapse in advance, you are poised to be a leader of opinion. You can stop the march towards totalitarianism as the situation gets worse and worse.
An interesting side note: Never forget that governments can change laws retroactively. In Italy, for example, the government allowed its citizens to repatriate (that means bring back into the country) any wealth outside of Italy tax free to help make the “economy stronger.” Billions of Euros, came back to Italy. Within a few years, and under a different leader, the rest of the plan was executed…
They retroactively taxed all of that money. Remember people would not have brought it back into the country unless they were promised that they would not be taxed.
On an even more ugly note, in Czarist Russia, the Gold Hoarders where shot after being blamed for the bad economy… the gold hoarders the Czar new about. The lesson: If you can legally not tell the Czar you own precious metals. Don’t.