gold confiscation / digital gold currency

[reptilian]

Hi,
I saw the opportunity to be the first to post in this category so why not ? I've been researching digital gold currency for the last few months in preparation for the oncoming inflationary depression that will probably spiral into hyperinflation. We're all probably aware that gold is going to be more stable than the US dollar for the foreseeable future and is nice to have around. One problem with holding physical gold is that in the past the US government has confiscated it en mass. In 1933, as part of the so-called "National Banking Emergency," President Franklin D. Roosevelt ordered all the gold in the country confiscated.

So, how compliant were Americans? Well, the banks were very compliant. If your gold was stored in a safety deposit box in a bank's vault, some government agent probably grabbed it. Then, if you wanted it back, you'd have to prove it was antique or a collectible or otherwise exempt. Nasty.

I'm convinced that the best way to protect yourself is to diversify your portfolio risk by holding gold in several different ways and in different countries, and of course you should have some gold and silver in your possession just in case all hell breaks loose. Just don't trust a bank safety deposit box, because it isn't your safety they have in mind.

With regard to having some gold and silver in your possession, I think the confiscation, when it comes, will at first target the low hanging fruit—gold in stores, in storage within the USA, and in bank vaults. Later, the government may move to door to door confiscations—as they proved willing to do for guns in New Orleans during Katrina. Of course, how you respond to such behavior is up to you. Guns and kevlar and ammo, gas masks and radios and cell phones and friends you can reach are all good ways to prepare for a possible attack by thugs. Keep yer powder dry.

Other than keeping some gold and silver where you live, and on your person when you drive around, it would make sense to have some buried where it would not be easily spotted by an aerial magnetometer survey, such as under reinforced concrete (basement, roadway) or an old junk car. If you live near any granite outcroppings, these are generally fairly good radio frequency insulators.

One convenient way to hold gold in another country is to own some gold-backed digital currency. I'm quite impressed with this one particular digital gold currency called Pecunix. Their site is the most secure site I have ever seen. The login system is completely phish proof and also when you sign up they even provide you with PGP keys to use for when you need to communicate with the staff securely. When you create Pecunix account you don't even give them any information. Your access code is the only thing they have that identifies your account. I recommend that you put your pecunix account number onto microfilm, into a small metal capsule and then have it surgically implanted in your thy.

The company is incorporated in Panama and the bullion is stored in a bank in Switzerland and It is audited by a 3rd party company ever 2 months. Their main data center is in New Zealand but there are redundant fail-over servers in place in several other countries. No part of the system is in the US. I'm convinced that if the FBI or other alphabet agency decided to go after Pecunix they would fail to shut it down short of invading Panama. The same really can't be said about most of the other e-currencies I've been looking at such as LibertyReserve or Goldmoney. I'm not saying you should go move all of your savings into Pecunix... but if you wanted to get out of the US quick with your gold without having to worry about it being stolen by banditos on your way to Mexico, having some pecunix would be a good way to do it. It's also possible to get an anonymous debit card that links up to your pecunix account so you can withdraw directly from this anonymous e-currency account from any ATM. It's neat stuff!

-Reptilian

[7redorbs]

hey reptilian, this is a most wonderful first post. thumbs up! Although I hold less notions about the importance of gold, I think it's important there is some emphasis on liquidity, if ww3 breaks out i'm not sure how that'd effect the value of gold. The most extreme and ridiculous example, but - I fear even the gold market is not immune to supply and demand.

I really dig the outright paranoia regarding the US government - some would say its spooky - I would say it's justified time and time by historical virtue. Better to be safe than sorry. In this case, quite literally, and I wouldn't call the safe safe at all, har har!

Great stuff buddy.

A

[outlander]

Posts like that make me glad I live in New Zealand. NZers are almost on a barter system as it is, so if TSHTF we might barely notice

[Mr X]

Now would be a very bad time to invest in gold. Better to invest in currency, the Euro. The dollar is about to become worthless as it increasingly looks like OPEC will switch from the 'petro-dollar' to the 'petro-Euro'. Also if China calls in the US' debt the dollar will plummet. The gold market is just about peaking now, but the smart money is starting to sell.
With financial collapse looking very likely in Dubai, it can only reverberate around the world. People think we are just coming out of recession, when in reality we are only in the very beginnings of a depression the likes of which has not been seen before.

Untitled Document

[7redorbs]

Now would be a very bad time to invest in gold. Better to invest in currency, the Euro. The dollar is about to become worthless as it increasingly looks like OPEC will switch from the 'petro-dollar' to the 'petro-Euro'. Also if China calls in the US' debt the dollar will plummet. The gold market is just about peaking now, but the smart money is starting to sell.
With financial collapse looking very likely in Dubai, it can only reverberate around the world. People think we are just coming out of recession, when in reality we are only in the very beginnings of a depression the likes of which has not been seen before.

Untitled Document

yo dude, financial collapse has been averted in dubai, they were saved by one of their friendly arab neighbour nations!!

I agree, that gold is at peak price, buying now seems counter-productive to 'profit' that universal energy to make and destroy things called money (not being sarcastic just how i feel about it!!) - I think my good friend A.G Frog summed things up nicely.

'Balance is the important thing, that keeps things continuing, if an extreme change in energy generation was to happen anywhere it would affect the world economy - but it is not just energy generation - but human beings that should be taken into account.

I actually agree that holding different currencies is important, you should know that all currencies between all countries are based on 'TRUST' - nothing else, bit freaky, but I'm assured by someone high up and part of the FSA it's true ;)

The question is 'trust' what, and 'whom' - perhaps balance is the way to win the game of chess.

Indeed knowledge and wisdom are different; but what of luck?? That, indeed ;--)

my 2 cents chaps,
A

[reptilian]

Now would be a very bad time to invest in gold. Better to invest in currency, the Euro. The dollar is about to become worthless as it increasingly looks like OPEC will switch from the 'petro-dollar' to the 'petro-Euro'. Also if China calls in the US' debt the dollar will plummet.

I agree that it is an inevitability that the dollar will collapse in the not too distant future. However I strongly suspect that the demise of the world's reserve currency will drive down the value of all fiat currency considerably because it will massively erode people's confidence in this type of monetary system. It will expose the fraud at the core of the monetary system and this fraud is not just a US phenomenon. The owner of the Federal Reserve is the owner of the European Central Bank, and the same kind of fraud is being perpetrated in both systems. This will become clear to investors of all shapes and sizes on a global scale when they feel the shockwave of the dollar meltdown and seek answers.

Sure the euro will be stable for longer than the dollar, but ultimately I think choosing between the dollar and the euro is like choosing between a rock and a hard place, and the collapse of the dollar will spur the herd to buy up hard assets more than we've ever seen in modern history. That means gold will soar much higher than anyone has imagined. Ultimately I don't think gold is the best hard asset to own. The gold market has been cornered for a long time, but I still think it's s much safer bet than any currency during a time period when the fraudulent nature of fiat money will be the hottest global news item.

-Reptilian