first majestic silver


January 30, 2004

Most Americans don't trust their government, and rightfully so, unless you think everything they say is true. Those who protect themselves with gold and silver, are highly suspicious of government "money," and want to get out of it. This is sensible, and if government's "money" were any good, I wouldn't be in business, because my services would be unnecessary. If government "money" were any good, it would be made of gold and silver, and paper currency backed by it. My doing what I do, would be similar to selling ice boxes in the Arctic, if government "money" were any good. Being a bit paranoid as we all are, daily I answer the question about "suppose government takes my gold and silver?" Allow me to answer it…again.

Admittedly gold and silver are the arch-enemy of paper money. They are poles apart. Gold and silver require effort, capital, exploration, machinery and processes beyond most people's wildest imaginings. Paper money requires cutting a few trees, making them into sophisticated paper, and then pushing the "on" button of a printing press. Most paper money requires far less than that, as it is written in millions of checks, wires, and other forms of transfers. Government dislikes gold and silver, because when they "go up" in dollars, it makes their paper money scam look pitiful, which it is. Some then figure that if government feels threatened by gold and silver, they will take it away from us. This is a logical fear, but is based on a myth. The myth is that government has confiscated gold once before, and therefore they might do it again.

Supposedly, FDR, America's worst president, confiscated citizens' gold in 1933. He didn't. What he did do, was order everyone to turn in their gold coins and take brand new $20 bills for their double eagles, $10 bills for their eagles, etc. It was supposed to be some sort of "national emergency," which no one ever explained. FDR's order, threatened the populace with fines and jail, if they didn't comply. Many foolish people did trade their gold for paper money, which was then backed by gold. Smart ones didn't. If everyone did, where would the coin shops get the pre-1933 US gold they have to sell today? No one was ever arrested, and no one was ever fined. It was a government order which some obeyed, and some didn't. How could government seize everyone's gold, when everyone had it? 200 million seizures? Hardly! Then again, back in 1980, when gold and silver made the paper dollar look extremely feeble and ridiculous, government never threatened to take it from the citizens. With gold at $850, and silver at $50, the dollar looked really bad, but there were no threats of confiscation. Let me remind you of a document, by which we are supposedly ruled.

"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probably cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." - Fourth Amendment to the Constitution of the United States of America.

If the government were so upset about citizens owning gold and silver, why wouldn't they stop selling it? Why wouldn't they shut down the mint at West Point New York, where they make those American Silver and Gold Eagles? I myself sell many hundreds of thousands of ounces of gold and silver eagles each year, and I am small potatoes compared to large firms, I am sure. Might that be a hint they were becoming upset about all those nasty people protecting themselves with gold and silver? If they were up tight about gold and silver, wouldn't they seize American mines, and prohibit imports of gold and silver? I don't like crime, but know of no way to stop it, other than by being armed. The government may consider gold and silver a threat, but even if they stopped producing and selling their Eagles, and prohibited imports, that wouldn't begin to stop it. It would simply go underground like drugs, and prices would go ever higher. There's nothing like a black market to make huge profits, and government well knows it. Prohibition of alcohol, made everyone want it, and the same thing would happen if gold and silver ownership were prohibited. They know it would be a lost cause to attempt to seize or prohibit it, so they won't.

Gold and silver harm no one, as do guns and drugs. Gold and silver protect, and give pride of ownership. Will they try to take our guns? I think so, eventually. Will they be successful? Of course not, because the answer when the eventual door knock happens, will be, "oh I sold that gun years ago at a yard sale," or "it was stolen by someone, and the crime was never solved." Guns and gold are necessary, but are not related. Both protect, but gold can't shoot. The would be gun abolitionists, can point out that those nasty guns are used to kill and rob, forgetting all about protecting ones self, and making crime go down when citizens are armed. No one can say that gold is any threat to anyone except paper money.

OK Chicken Littles, let's suppose that the government stopped making and selling gold and silver Eagles, seized the mines, and attempted to stop imports… a chance about as remote as the sky falling. Does anyone in their right mind, really believe that a success could be made of trying to find every person who might have a few Krugerrands, or a hundred ounces of silver? Would any court allow such? Would the Supremes vote for such a violation of rights? Hardly, and if it did happen, forget America, because it's gone. Paranoia eventually gets too much!

There are many other ways to hedge against the paper dollar's fall. Antique autos, furniture, original art work, rare stamps, and old electric trains come to mind, and E-Bay is full of them. These do not have serial numbers and buying them does not require notifying the federal government of doing so. What does require notification? Stocks, bonds, guns, and real estate, for a couple. People who buy stocks, guns, and real estate, need to give their Social Security number, etc. Gold and silver have no identifying marks to distinguish one from another. They have no serial numbers or deeds showing ownership. They are merely coins that one buys, just like a new sofa, or set of tires for your car. No big deal. Do you paranoids believe that government will steal your antique china or sofa? Do you believe that government has designs on your Model A Ford? These also make the dollar look stupid, which it is. Just about everything for sale anywhere, makes the dollar look absurd, if you stop and think about it.

The feds are so busy lying about Iraq, 9/11, Pan Am flight 800, inflation, and a million other things which bother them, and which make the whole establishment look silly, believe me, they could care less about your few ounces of gold. To conduct a search of everyone who may have bought some gold or silver, is so silly, as to be ridiculous, even if they could get the courts to approve of such a move. The costs would be astronomical, and the whole thing would be futile. If you think government is so powerful, and has the ability to stop what they may not like, how about the "war on drugs?" How about the world's oldest profession, prostitution? How about guns, if the truth be known? To even imagine that the government will force anyone to divulge who has bought a few ounces of gold, and then to attempt to seize it, is preposterous.

As far as taxes are concerned, if you sell something at a profit, be it a Model T Ford, king size bed, or 1835 stamp, and it is a profit, will you pay capital gains taxes or income taxes on the sale? I guess that's up to you. If you sell anything at a profit, technically you owe a tax on it, I suppose. One shouldn't drive over the speed limit either. Do you? Protect yourself.

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