Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
How to Trade Binance Vanilla Options for the First Time on Bitcoin Crypto's - 2nd Aug 21
From vaccine inequality to economic apartheid - 2nd Aug 21
Stock Market Intermediate Top Reached - 2nd Aug 21
Gold at a Crossroads of Hawkish Fed and High Inflation - 2nd Aug 21
Bitcoin, Crypto Market Black Swans from Google to Obsolescence - 1st Aug 21
Gold Stocks Autumn Rally - 1st Aug 21
Earn Upto 6% Interest Rate on USD Cash Deposits with Binance Crypto Exchange USDC amd BUSD - 1st Aug 21
Vuze XR VR 3D Camera Takes Near 2 Minutes to Turn On, Buggy Firmware - 1st Aug 21
Sun EXPLODES! Goes SuperNova! Will Any planets Survive? Jupiter? Pluto? - 1st Aug 21
USDT is 9-11 for Central Banks the Bitcoin Black Swan - Tether Un-Stable Coin Ponzi Schemes! - 30th Jul 21
Behavior of Inflation and US Treasury Bond Yields Seems… Contradictory - 30th Jul 21
Gold and Silver Precious Metals Technical Analysis - 30th Jul 21
The Inadvertent Debt/Inflation Trap – Is It Time for the Stock Market To Face The Music? - 30th Jul 21
Fed Stocks Nothingburger, Dollar Lower, Focus on GDP, PCE - 30th Jul 21
Reverse REPO Market Brewing Financial Crisis Black Swan Danger - 29th Jul 21
Next Time You See "4 Times as Many Stock Market Bulls as There Are Bears," Remember This - 29th Jul 21
USDX: More Sideways Trading Ahead? - 29th Jul 21
Waiting On Silver - 29th Jul 21
Showdown: Paper vs. Physical Markets - 29th Jul 21
New set of Priorities needed for Unstoppable Global Warming - 29th Jul 21
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Conditions for Global Gold Confiscation by Governments

Commodities / Gold & Silver 2009 Sep 19, 2009 - 06:16 AM GMT

By: Julian_DW_Phillips


Best Financial Markets Analysis ArticleAs the sixth and final part of this series we now look at this question: "Is it possible to get a synthesis of world governments to override the attraction of gold??"

The greatest issues that face the global monetary system is twofold: -

  1. The vast over-issuance of the U.S. $ internationally, has debauched its international value. In time this will lead to hugely falling buying power and translate into very high prices for the resources of the world. Few believe the plans put forward to reduce quantitative easing will work as expected, as this will simply return the world to recession or worse still, depression. Such liquidity reductions can only take place in a climate where confidence can be maintained as money tightening kicks in. This is not just inside the States but globally. So 'confidence' in the $ and its future value and credibility has waned tremendously even amongst foreign [particularly Asian] governments. The globe's currencies are like branches of a tree coming out of a trunk. The U.S. $ is the trunk, resulting in the entire monetary system facing irreparable fractures should anything like another 'credit crunch' happen again. Most people believe that the current state of the international monetary system is headed towards such stresses. Hence, gold is an alternative wealth preserver for governments, as well as individuals and institutions [demonstrated by central banks being net gold buyers now].
  2. The rise of China is underestimated. In a relatively short period of time the Chinese presence in the global economy will be so great that it will outgrow the U.S. economy. To quote President Sarkozy of France, "The political and economic reality of a multi-polar world will have to find sooner or later a translation on the monetary level. A multi-polar world can't count upon one currency only." Whether the Yuan makes its presence known as part of a newly shaped Special Drawing Right component or stands alone in the world monetary system, it will take the place of the $ eventually as it does so. This will force major changes in the global monetary system, not simply by adding another currency to it, but by diminishing the role of U.S. Monetary politics in the global monetary system. I have no doubt that the vast political differences between the two will bring a degree of uncertainty that will damage the cohesion of the global monetary system and make sure that gold once again finds the respect it had before 1971.

These are dramatic changes, the impact of which will form the foundation of our future global money systems. If the world's governments could act in unison over the issues facing the money system we have no doubt that monetary reformation would be so successful as to remove the need for gold in any part of the system. But with national interests always taking precedence over international interests, few governments could survive the voter revolts if their national interests or economy were held back or restrained in any way, by the interests of other nations. So it is nigh-on impossible for a global forum of governments to agree to a dominant money system. Even if they were, you can be sure that they would keep a firm grip on their gold in the probable event that the unity would only be temporary. Future money systems must reflect that!

On the other hand the potential for the strains caused by the U.S. $ and the shift in the world's power base to the East certainly have the potential to cause more global currency crises. This will only be seen as the world moves to a full-blown recovery. Then as oil and other resources become the focus of more vigorous demand, so higher prices, the strains will make these future crises mature. In that environment, governments that do not produce their own resources will face the dangers of rationing and capital flight restraint [Capital Controls, etc]. The stresses felt then, will considerably lessen any global cohesion on the monetary front. Gold will again become vital in maintaining confidence in paper money [Central and other banks, will fight any restoration of a Gold Standard or any form of money used as a means of exchange]. Because of their 'national interests' gold will only be allowed to remain as a confidence builder in paper money. Thus, it will continue to be used as only a reserve asset.

Citizens store gold for governments.

We are witnessing the Chinese government encouraging Chinese citizens to investment in gold and silver. In all lands where gold is respected, including the U.S.A., citizens are holding increasing amounts of gold in their portfolios in one form or another. In so many gold-aware nations gold is taking a rising part in investment portfolios. Since the turn of the century, European central banks have made it clear that they believe gold to be an important reserve asset and have limited their sales of the metal. In the last year European central bank signatories have lowered these sales to a trickle. Russian and Chinese central banks have increased their purchases of gold enormously making global central banks net buyers of gold, by a long shot.

As we mentioned earlier in the series, the U.S. government has believed that gold ownership is a privilege, not a right.


Fit young men are seen as a national asset in times of war. When the need arises, citizen's gold will be seen as a national asset. If the need then arises, gold will be confiscated by government in the interests of the nation. The question you have to ask yourself is am I prepared for that eventuality or will I wait until it's too late as U.S. citizens did in 1933?

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 will prevent their gold from being confiscated!

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