Executive Order 6102: Implications for Gold Investors

Confiscations are possible and enshrined in law
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History records that the American government has assumed powers to confiscate gold on three occasions: during the War of 1812 – a conflict between the US and Great Britain; as an emergency measure in the Civil War; and in 1933, as a presidential response to the Great Depression.

During the last of these three episodes, just days after taking office, President Franklin D. Roosevelt signed Executive Order 6102 giving his US government the power to seize gold in the hands of private citizens. That statutory power has never been repealed. Consequently, the gold assets of US investors held in domestic safe deposit boxes are potentially at risk, much like the way their European counterparts are now subject to new EU laws affecting stored gold following the global banking crisis of 2008.

European Union legislation, valid from 2016, now provides powers to secure a ‘bail-in’ of private and institutional assets when necessary to support the recapitalisation of failing banks. However, US legislators have no need to seek approval to confiscate private gold during an economic emergency, because FDR’s Executive Order 6102 is the only tool they need.

Executive Order 6102 and its location limits

The original Congress wording describes Executive Order 6102 as: “An Act to provide relief in the existing national emergency in banking, and for other purposes.” Declaring that “a serious emergency exists”, the 1933 legislation proceeds to “… hereby prohibit the hoarding of gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations…”

During a careful analysis of Executive Order 6102 conducted in 2008, wealth preservation expert Mark Nestmann noted the use of the geographical phrase “within the continental United States”. This, Nestmann pointed out means that: “In the event another gold confiscation ever takes place in the United States, gold stored offshore may avoid being targeted should the accompanying executive order be crafted along the same lines of the April 5, 1933, decree.”

While acknowledging that any forthcoming executive order introducing a new gold confiscation could simply remove all reference to the “continental United States”, or any other territorial limits, Nestmann referenced many experts who believe the relocation of gold assets overseas adds “another possible level of protection” for investors.

Nestmann’s own advice to investors and those formulating offshore asset protection strategies was unequivocal: “Keep some gold and silver bullion outside the United States, preferably in a safety deposit box or a private vault. That way, if a second confiscation occurs, your holdings won’t be immediately affected…”

Hands reaching for gold coins
The danger of confiscation of precious metals cannot be dismissed.
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An accessible safe haven

US investors planning to follow Nestmann’s advice need look no further than Switzerland for an accessible offshore safe haven. Situated close to the heart of Europe, Switzerland is a sovereign democratic state with a stable government underpinned by a strong financial system with the Swiss franc, a renowned safe-haven currency, at its core. Although the country has good transport links with Europe and the wider world beyond, Switzerland is not a member state of the European Union, nor does it have any other compromising affiliations. Allied to its historical stance as a champion of individual property rights, reputation for gold-standard banking, and absolute discretion in all business matters, this makes Switzerland an ideal location for the safe storage of assets and valuables of every kind.

Due to its position as a major importer of gold and other precious metals, and long experience of trading such assets, Switzerland also has no shortage of companies who can provide professional services for the storage of gold and other precious metals.

Swiss Gold Safe Ltd. is one such company servicing the needs of national and international institutions and private individuals looking for high-quality asset storage and protection. With safe deposit boxes and vault facilities available for rent, Swiss Gold Safe can offer clients seeking a storage solution for gold and other valuables a superb package of benefits, which includes:

To summarize the main points of this article:

To find out more about Swiss Gold Safe services and rental of offshore safe deposit boxes, please visit: https://offshoresafedepositboxes.com/safe-deposit-boxes-in-switzerland/.