As most of our WealthCycles.com readers know, governments don’t like gold. You could make an even broader statement and say that governments don’t like anything that competes with their control. Throughout the centuries, gold has been the ultimate rebel against governments.
Governments around the world are becoming increasingly insolvent. Not only have they borrowed vast amounts of currency, but the citizens of those countries are beginning to wake up to government economic recklessness for the first time.
The recent history of gold control:
- In 2010, the Patient Protection and Affordable Care Act (aka: Obamacare) was passed. Section 9006 of the act amended IRS form 1099 to require that all businesses and self-employed people report transactions valued over $600 to the IRS.
- It is worth noting that this requirement would have applied to all purchases, not just gold and silver, masking what would have been one of its primary effects: to allow the IRS to document and track precious metals transactions. Fortunately, following a public outcry from business interests, the 1099 reporting requirement was repealed this spring.
Earlier this month, in a stated effort to curb money laundering, the government of Austria banned gold sales over 15,000 euros. From commodityonline.com:
Also from commodityonline.com: “Meanwhile, in Italy, top industrials and professionals have sent a letter to the government and parliament to ban all cash transactions above 300 Euros, and only permit electronic transfers!”
- Now there is word from France, which will now require all metal sales over 450 euros be paid with credit card or bank wire transfer—again, supposedly to prevent money laundering.
While one incident might be dismissed as just meddlesome lawmaking, three examples indicates a budding trend. Indeed, when you combine these policy changes with the well documented gold price suppression by central banks, it all points unmistakably to a conspiracy to preserve the current monetary system.
The more gold becomes a coveted option for investors, the more the central governmental powers will try to control the price. Remember, gold and silver compete with fiat currencies; therefore, gold and silver are, in essence, governments’ enemies.
If you don’t own any gold or silver yet, this may be a good to consider it. As the world economic scene grows increasingly more dire, governments’ efforts to control and regulate gold transactions will only increase.
What’s your opinion?