401K To Gold IRA Rollover Fears - Will The Government Seize My Gold?
There are more than a few investors these days who are choosing to invest in gold and precious metals.
The current economic state of affairs in the world and fears of another economic collapse or dip has cause investors to look for a way to secure their savings.
Gold, being a tangible asset that can secure your investment dollars, has always been a preferred method of securing wealth.
Many investors are choosing to withdrawn portions of their 401K or IRA or completely liquidating their retirement accounts and moving that money into precious metals or gold IRAs.
While this is a very safe investment, there are others who warn that the government can seize your gold.
This causes many people to dismiss the whole thought of moving their 401K to a gold IRA or buying gold bullion.
The truth is that the fear instilled in investors that the government can or will seize your gold is simply a tactic that is used by some gold companies to get you to invest in collectible or numismatic coins.
The theory is that numismatic coins can't be seized by the government if there were to enact a Presidential order similar to the one enacted by President Roosevelt in 1933.
That order allowed citizens to keep any collectible gold coins and this is the "loophole" that unscrupulous gold dealers use to try to push you to buy overpriced collectible gold coins.
Can The Government Seize Your Gold? There is presently no such order that will allow the government to seize your gold.
Also, the order in 1933 didn't allow the government to go around seizing gold.
It required that citizens turn in their gold, for which they were paid.
Keep in mind that this was during an age when the dollar was backed by gold.
The US dollar is no longer backed by gold so the government would have no reason to seize or even require that US citizens turn in their gold.
Also, out of all the citizens of the United States, how many do you think actually turned in their gold and how many continued to hoard gold? If the number of common pre-1933 gold coins is any indicator of how many people were compliant then you should see that there were a lot of people that held onto their gold.
Keep in mind that these were gold coins that were used for currency.
They weren't collectible coins.
Why The Government Won't Seize Your Gold Even if the United States went back to a dollar backed by gold, the price of gold would skyrocket into the stratosphere.
It is estimated that in order for the US to go back to the gold standard, gold would have to sell for more than $10,000 an ounce.
Other estimates put this price at over $40,000 an ounce.
Then, in order for the government to inject the economy with more money it would have to have more gold.
Currently, as you know, the government simply prints more money when they wish to stimulate the economy.
This causes inflation but it is how things have been done since the US moved away from the gold standard.
Why You Will Hear That The Government Will Seize Your Gold This scare tactic, among a few others, is used by some gold companies to pressure you into buying collectible gold coins that have a very high markup.
These coins make them more profit than a gold IRA or if you were to buy gold bullion.
While there's nothing wrong with coin collecting.
Many of us have enjoyed this hobby since we were kids and it used to be very popular.
If you are hoping to secure your wealth by investing in gold or silver, these coins are not allowed to be a part of a gold IRA.
Also, it's difficult to sell these coins back or liquidate your investment for what you bought them for.
Investing in gold to secure your savings and wealth requires you to buy as much gold for your dollars.
Gold has proven to be a very good long term investment but, just like any other investment, you are searching for the best price.
Investing in numismatic or collectable coins should be compared to investing in a potential antique.
If you wish to withdraw your retirement and invest it in antiques then you should do so but invest in some antiques that you know something about.
Don't take the advice of a salesman that stands to profit from your fear.
The current economic state of affairs in the world and fears of another economic collapse or dip has cause investors to look for a way to secure their savings.
Gold, being a tangible asset that can secure your investment dollars, has always been a preferred method of securing wealth.
Many investors are choosing to withdrawn portions of their 401K or IRA or completely liquidating their retirement accounts and moving that money into precious metals or gold IRAs.
While this is a very safe investment, there are others who warn that the government can seize your gold.
This causes many people to dismiss the whole thought of moving their 401K to a gold IRA or buying gold bullion.
The truth is that the fear instilled in investors that the government can or will seize your gold is simply a tactic that is used by some gold companies to get you to invest in collectible or numismatic coins.
The theory is that numismatic coins can't be seized by the government if there were to enact a Presidential order similar to the one enacted by President Roosevelt in 1933.
That order allowed citizens to keep any collectible gold coins and this is the "loophole" that unscrupulous gold dealers use to try to push you to buy overpriced collectible gold coins.
Can The Government Seize Your Gold? There is presently no such order that will allow the government to seize your gold.
Also, the order in 1933 didn't allow the government to go around seizing gold.
It required that citizens turn in their gold, for which they were paid.
Keep in mind that this was during an age when the dollar was backed by gold.
The US dollar is no longer backed by gold so the government would have no reason to seize or even require that US citizens turn in their gold.
Also, out of all the citizens of the United States, how many do you think actually turned in their gold and how many continued to hoard gold? If the number of common pre-1933 gold coins is any indicator of how many people were compliant then you should see that there were a lot of people that held onto their gold.
Keep in mind that these were gold coins that were used for currency.
They weren't collectible coins.
Why The Government Won't Seize Your Gold Even if the United States went back to a dollar backed by gold, the price of gold would skyrocket into the stratosphere.
It is estimated that in order for the US to go back to the gold standard, gold would have to sell for more than $10,000 an ounce.
Other estimates put this price at over $40,000 an ounce.
Then, in order for the government to inject the economy with more money it would have to have more gold.
Currently, as you know, the government simply prints more money when they wish to stimulate the economy.
This causes inflation but it is how things have been done since the US moved away from the gold standard.
Why You Will Hear That The Government Will Seize Your Gold This scare tactic, among a few others, is used by some gold companies to pressure you into buying collectible gold coins that have a very high markup.
These coins make them more profit than a gold IRA or if you were to buy gold bullion.
While there's nothing wrong with coin collecting.
Many of us have enjoyed this hobby since we were kids and it used to be very popular.
If you are hoping to secure your wealth by investing in gold or silver, these coins are not allowed to be a part of a gold IRA.
Also, it's difficult to sell these coins back or liquidate your investment for what you bought them for.
Investing in gold to secure your savings and wealth requires you to buy as much gold for your dollars.
Gold has proven to be a very good long term investment but, just like any other investment, you are searching for the best price.
Investing in numismatic or collectable coins should be compared to investing in a potential antique.
If you wish to withdraw your retirement and invest it in antiques then you should do so but invest in some antiques that you know something about.
Don't take the advice of a salesman that stands to profit from your fear.
