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 That statutory power has never been repealed.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…”
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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:
- a privately owned professional storage facility fully independent of all banking systems;
- state-of-the-art safe deposit boxes and safes in a high-security vault located just an hour away from Zurich;
- contents insurance cover without disclosure of client details to insurers;
- no declaration of safe deposit box contents, and absolutely no reporting to third parties, or any national or international agencies;
- no mandatory requirement to become a Swiss bank account holder;
- all keys handed over to client with full access rights;
- a premier service characterized by the expertise of its personnel, and renowned for its commitment to absolute discretion.
To summarize the main points of this article:
- Executive Order 6102 potentially gives the US government powers to confiscate gold belonging to American private investors.
- Similar and more-recent moves in other significant jurisdictions imply banking networks are adjusting global banking rules in readiness for any future bank insolvencies.
- In its present form, Executive Order 6102 does not affect offshore safe deposit boxes – which has some positive implications for investors.
- As a secure and stable independent sovereign state, Switzerland can offer a much enhanced level of protection against asset confiscation and many other potential risks.
- Swiss Gold Safe are professional, Swiss-based providers of storage facilities for gold and all kinds of valuables who possess the facilities, reputation and expertise to offer offshore asset protection of unrivalled quality.
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/.