Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

The Real Threat of Government Gold Confiscation

Commodities / Gold & Silver 2009 Sep 12, 2009 - 06:36 AM GMT

By: Julian_DW_Phillips


As the fifth part of this series we now look at this question: "How will Gold Confiscation affect the citizens of other countries, in the event their Central Bank takes their gold?"

Does the U.S. have rights in other countries, over their [U.S.] citizen's wealth?

The latest story to hit the headlines in this regard is the matter of U.B.S. I'm sure all of you have read the details there, so I won't describe the entire story. The pertinent point is that the U.S. Taxman asked for confirmation of the names of 52,000 account holders and has received 4,500 only. Why?

The Swiss government relies on its banking services for a considerable percentage of the nation's income. For three hundred years they have provided a home for foreign owned assets and monies. The have, still firmly in place, Bank Secrecy Laws that ensure that nobody can expose account holders at banks unless they have evidence of criminal activity on the part of account holders. They have stated clearly in the past that Tax Evasion is not considered a crime. Illegal exports of wealth that involve a crime [such as diamond smuggling] would lead to the Swiss authorities turning over an account holder's name. So, 4,500 out of 52,000, implies that criminal activities were allegedly perpetrated by these account holders and 47,500 were not associated with crimes. This despite the U.S. Taxman's objections to U.S. owned money being held in Swiss banks without disclosure to the U.S. Taxman. Bear in mind that this is continuing!

Will the U.S. Taxman have any chance of exposing the 47,500 account holders? The agreement made between the Swiss and U.S. Authorities clearly tells us NO! This defines for us, the extent of "financial sovereignty". Without Swiss government support, the U.S. Taxman cannot overrule Swiss Banking Secrecy Laws. All that is left to the U.S. Taxman is prosecute suspicions at home and attack locally [U.S.] owned assets by U.S. citizens, but then he needs proof positive to be able to do so. This does not appear to be available in the case of 47,500 secret Swiss Bank Accounts. So the solid conclusion we can draw is that Jurisdiction rules!

Having said that, please know that gold holding companies [At home and abroad], which have U.S.-owned gold, have agreed to disclose account holders to the U.S. Authorities and will not go against the U.S. Authorities. So generally now, Swiss Banks will not entertain new U.S. account holders. For instance, Julius Baer holds gold in its physical fund only for non-U.S. citizens. So just holding gold overseas is clearly not enough!
[We are working on a solution to this problem right now!]

For citizens of other countries.

Citizens in other lands face the same governmental claims on their income and capital. The main difference is that, should you leave that country to live elsewhere, your local taxman considers only the income and capital you leave at home to be under his Jurisdiction. So long as you reside in that country [usually for more than 3 years] your worldwide wealth is under his Jurisdiction.

There have been attempts by governments to force the repatriation of foreign assets, but this has often pushed citizens to leave the country and abandon their home nationality. The developed world has, in the past, exerted a more efficient grip on its citizen's wealth, but all nations do their best not to be too draconian, except in the dark days of extreme money conditions. When these have persisted, they have gone to any lengths to control citizen's wealth, even to the extent of taking ownership control of assets left behind by departing residents. i.e. You have to ask their permission to use your own money even at home, while you live elsewhere.

Don't think for a moment that such moves cannot happen again. To remove the possibility of the seizure of gold, the world must be a far different place to the one we see now. There will have to be complete governmental and citizens acceptance that global interests override national ones. Likely? If you see this, you will likely see a squadron of pigs circling the White House at the same time.

That is why the gold Exchange Traded Fund, The Ultimate Gold Fund has been designed to accommodate U.S. gold owners, holding their gold in Switzerland, in a manner that is intended to prevent their gold from being confiscated!

The Final Part will be next week : -

Make sure you follow this series and other fundamental gold matters in the: -

Gold Forecaster regularly covers all fundamental and Technical aspects of the gold price in the weekly newsletter. To subscribe, please visit

By Julian D. W. Phillips
Gold-Authentic Money

Copyright 2009 Authentic Money. All Rights Reserved.
Julian Phillips - was receiving his qualifications to join the London Stock Exchange. He was already deeply immersed in the currency turmoil engulfing world in 1970 and the Institutional Gold Markets, and writing for magazines such as "Accountancy" and the "International Currency Review" He still writes for the ICR.

What is Gold-Authentic Money all about ? Our business is GOLD! Whether it be trends, charts, reports or other factors that have bearing on the price of gold, our aim is to enable you to understand and profit from the Gold Market.

Disclaimer - This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Gold-Authentic Money / Julian D. W. Phillips, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold-Authentic Money / Julian D. W. Phillips make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold-Authentic Money / Julian D. W. Phillips only and are subject to change without notice.

Julian DW Phillips Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules