The likelihood of direct gold confiscation is low, says this bullion coin dealer. But that is not the only threat. There is a threat of an emergency decree controlling access to government-approved retirement assets.

Firs, on direct confiscation.

Last week I discussed how some coin marketers are trying to scare customers into purchasing more profitable (for the dealer) merchandise to avoid the risk of the merchandise being “confiscated” by the U.S. government similar to what took place in 1933.

My discussion pointed out that even though the U.S. government has the legal authority to engage in another fully compensated mandatory redemption program, that it was highly unlikely to happen. The main protection for purchasers of bullion-priced gold is that the U.S. government would likely lose money if it tried to repeat a similar program today. The value of gold that could be recovered from U.S. citizens is relatively minimal while the risk of foreigners panicking to get out of the U.S. dollars, and the subsequent huge decline in the value of the dollar, would be high.

I think this assessment is correct. I have said so for at least 45 years.

But there is another threat.

Because these articles explaining that “gold confiscation” is only a remote possibility do not discuss what I perceive to be a much greater risk where many owners of physical gold and silver could have their assets seized by the U.S. government.

The US government is desperate to uncover any means of increasing revenues. I think in this environment any group of privately held assets amounting to multiple trillions of dollars is at risk.

This becomes an ever-greater threat as the fiscal crisis accelerates. There is no politically acceptable solution on the horizon. This raises a problem.

There is one such asset class that would be ripe for government “confiscation.” That is private retirement accounts, including IRAs, 401(k) accounts and others.

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