How to confiscate gold? That could happen, of course. Desperate governments will take desperate measures. The global economy is in a downturn and is now on the way to a hyperinflationary depression, unlimited cash creation will cause currency collapses, which in turn will lead to a steep rise in gold prices in terms of worthless paper money.So the first question we have to ask ourselves is: why would governments punish prudent savers who sought protection against irresponsible mismanagement of the economy and currency?
Gold: 0.5% of global assets
Credit Suisse estimates that global financial assets are $ 360 trillion. Of these, $ 85 trillion are shares, or 24%. The global bond market comes to $ 100 trillion (28%). Investment gold is around 35,000 tons, or $ 1.9 trillion. And that corresponds to just 0.5% of global financial assets.If investment gold is only 0.5% of global assets, while the equity stake is 24%, one may wonder why the U.S. government is doing everything possible to increase the value of stocks by creating money while maintaining it depresses the gold price. Why do you support shareholders in getting rich while gold holders are being punished?Governments are clearly promoting rising stock market prices because it gets them votes.
Will the United States confiscate gold?
Now that we’re entering a phase of strong currency devaluation and potential hyperinflation, one might wonder why governments should stop investors from securing wealth in the form of gold. Would the United States confiscate the Americans’ gold instead of promoting thrift and proactive wealth protection? Some observers, such as Jim Sinclair (“Mr. Gold”), think that this could even affect US gold mines. However, he believes that established, common coins such as the US Eagle would be exempt.