Gold Confiscation and the Patient Protection and Affordable Care Act. Posted by James Randolph on November 19, 2010
November 19, 2010 – There is some pretty frightening news for gold investing buried deep in Section 9006 of the Patient Protection and Affordable Care Act – the health care reform. Starting in 2012 small businesses and the self employed will be required to file a 1099 for all purchases of goods and services totaling $600 or more over an entire year.
That is an enormous invasion of privacy for individual gold investors. Selling back just one half ounce of gold means the buyer must report the transaction to the IRS. Worse than the tax implications, this law gives the government the means to keep tabs on the movement of gold among its citizens. And that raises the threat of confiscation to a whole new level.
Whenever the topic of confiscation comes up pundits are quick to dismiss it as baseless paranoia. One look at the deteriorating economic crisis, however, paints a different picture. China is gravely concerned about our policy of diluting the dollar with excessive printing and sooner or later they are bound to pull the plug on loans to us. To avoid default we will need huge stores of hard assets.
The government’s gold reserves are dwindling – from 68% of the world’s holdings in 1950 to just over 28% today – but private holdings are at record level. Contrary to popular opinion, holding gold is a privilege, not a right, and the Trading With the Enemy Act, which gives the government the legal framework for confiscation, is still on the books.
But won’t the government pay for any gold it confiscates? Of course it will, probably at the official treasury rate of about $42 per ounce. This is more than a call to protect your wealth with certified gold coins – it is a call to action to stop this government plunder.
Senior Staff Writer – Certified Gold Exchange