The Truman Company, Gold, Silver & Platinum Dealers, Roseville, MN

Phone: 651-582-3865
Email: roger@trumanrc.com
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1933 FDR

Advantages for Private Property

The U.S. Government views Gold ownership by it’s citizens as a “privilege” not a “right” and our “privilege” was restored in 1974 after 41 years of Government control. This is a revocable “privilege” as already demonstrated three times in American history. Gold was confiscated under F.D.R. in 1933, under President Lincoln in the Civil War and once prior to the signing of the Constitution. The most famous being FDR’s Executive Order 6102 The Gold Bullion recall of 1933.

Have you not been surprised at some of the things you thought you would never see be done in this current government?The laws of gold confiscation are very clear: During any time of national crisis, it can become illegal to buy, sell, or “hoard” gold bullion in any form. It is delineated under an Executive Order and can be re-administered as quickly as the assets in your checking account can be frozen. The penalties for violation are 10 years in prison, $10,000 fine, or both. Now some would say that it would not happen again but really have you not been surprised at some of the things you thought you would never see be done in this current government?

Representative Ron Paul

Ron Paul served on the Gold Commission in the House of Representatives. Paul wrote: “If it gets bad enough, they’ll declare a national economic emergency. They’ll take over the banks, all business and industry. They may even try to confiscate our gold. I served on the Gold Commission for eight or nine months while I was in Congress along with fifteen other members. I brought up the subject of confiscation. I urged the full Commission to recommend Congress repeal the power to confiscate gold in an economic emergency. We pushed it to a vote and I was the only one that voted to recommend to Congress that we never again contemplate taking the gold of the American people. The fifteen other members voted it down. The power is still there on the books, and they can do it any time they wish.”

The potential for another Gold confiscation is very real. This is the one big advantage of numismatic coins, they are considered private property. That distinction carries many privileges not afforded by bullion in any form. History shows us that Gold can be and has been seized by governments throughout history all over the globe. Yet throughout history governments are reluctant to touch collections of numismatic gold coins. I wonder why our lawmakers have such large coin collections?

Today there are some 49 countries which forbid ownership of gold by their citizens, but do allow holding gold coins for numismatic purposes. Even the Soviet Union and Eastern countries legally tolerate the acquisition of numismatic gold coins.

Exempted from Roosevelt’s Executive Order 6102 The Gold Confiscation of 1933 were coins deemed “rare and unusual”. Why? The Roosevelt administration knew gold coins held by people for historical, cultural, or collector reasons would be a problem. The problem for Roosevelt was the Fifth Amendment to the U.S. Constitution, specifically the Eminent Domain Clause, which states, “nor shall private property be taken (by the government) without just compensation”. This meant the government would have to take every “collector coin” which is considered private property on a case by case basis to determine “just compensation” for all rare and unusual coins, a very expensive, politically explosive (large collections in DC), logistical nightmare that would be a virtually impossible task. Currently less than 2% of all precious metals are considered private property. On August 9, 1934, Roosevelt issued Executive Order 6814 ordering all silver bullion be surrendered to the U.S. Treasury within 90 days. A 50% tax was also levied on all profits realized from the sale of silver. People were paid 50.1 cents per ounce.

The first American who was indicted for the “crime” of owning gold, and who rebelled against the notion that he was a felon for doing so, was a lawyer named Frederick Barber Campbell. In October of 1932 and January of 1933 Campbell had deposited twenty-seven bars of gold bullion with Chase National Bank for safekeeping. Chase had agreed in writing to act as bailee, for a fee, and return the bars to Campbell on demand. Then came the Emergency Banking Act of March 9, 1933. Chase contacted Campbell stating they would return to the government his bullion. Campbell demanded his bullion and filed a case against the government. Now it was the government’s turn.

October 5 the grand jury filed a indictment, containing two counts. The first, for failure to file, the second, for owning, without license, on September 28, 1933, and up to the time of the indictment, $200,000.00 worth of gold bullion. Campbell argued the government did not have the right to seize gold but after a lengthy discussion about eminent domain he was trumped by Judge Woosley.

But Judge Woosley sided with collectors when he ruled; Because gold was a “commodity affected with a public interest as a potential source of currency or credit,” Congress could, “when it considers that the national exigency demands control of gold … control gold in such a manner and to such extent as it deems to be advisable, provided always that it does not violate the personal Constitutional privileges of citizens.

Benefits fo Private Coins

Banks and brokerages require the extensive disclosure of client information …collectible coins are absolutely free from this kind of intrusiveness. Private coins are one of the few remaining assets that can be acquired privately and confidentially. You are not required to file a 1099-B form when you “buy or sell” your collectible gold and silver coins. They are considered private property. By investing in them, you are not revealing a single thing to the world at large. Banks and brokerages require the extensive disclosure of client information to governmental agencies and then even resort to selling it to marketers. Collectible coins are absolutely free from this kind of intrusiveness.
According to the CU 3000 Index, the standard of numismatic coin performance, a $1,000 investment in a “basket” of generic gold coins purchased in 1970 was recently worth $22,500. Meanwhile, a $1,000 coin portfolio of mint state gold coins grew over that same time to over $57,977. Compare that to the Dow, where $1,000 invested in 1970 is worth $13,500. Over the fifteen recessions the U.S. as experienced since 1919, numismatic rare coins have performed particularly well. During the period from 1981 to 1989, for example, a time most notable for the ending of a recession and the nightmarish stock crash of 1987, the CU 3000 Rare Coin index shot up an astounding 660 percent. Rare coins produce significant profits even during periods when the price of gold is falling. For example, from 1988-1990, rare coins went up more than 100%; the price of gold fell from $500 to $360.

Tax Advantages

are numerous with collectible coins through IRS #1031 “Like Kind exchanges”. 1031 “Like Kind Exchanges” qualify for non-recognition of gain. Brokerages are not required on the buy or sell of Collectible Gold and Silver coins to file an IRS 1099-B Form. This specific benefit gives Collectible coins the label “The least visible form of wealth” for good reason.

Strategy

Convert a portion of your assets (15% to 25%) into a form that has withstood both U.S. Supreme Court and Treasury Department scrutiny. Buy Gold and Silver coins that have not only intrinsic value but numismatic value as well. Coins that are considered “antique” or minted for Historical purposes and rare coins are deemed private property allowing several privacy and tax advantages not possible with bullion. There is also a proven wealth building potential due to increasing demand and diminishing supply.

In 1979 The Franklin Mint shipped a substantial number of Krugerrands (Bullion) on TWA. The shipment was lost by TWA, so the Franklin Mint sued to recover its loss at the actual market price of gold. In Franklin Mint Corp. vs. Trans World Airlines, the Supreme Court ruled that gold bullion values in commerce are limited to $42.22 an ounce. That’s all they received! It is extremely important to have