U.S. Treasury Freezes Production, Sales of all American Gold Coins - U.S. Mint Widens Gold Coin Freeze, What’s Next?
Arthur Cristian
.S. Mint Widens Gold Coin Freeze, What’s Next?
By Dividend.com Staff
October 8th, 2008
The U.S. Mint has widened the freeze on sales of gold bullion coins.
Investors have been piling up holdings of the coins as the markets have been rocked with turbulence. The government’s latest action is halting the production and sales of gold and platinum coins. This move comes after the Mint stopped sales of two other coins in August and September.
Back in the 1930’s, President Franklin D. Roosevelt, recognizing the inherent value of a currency based upon gold, and looking to stabilize the U.S. dollar, ordered gold coins owned by American citizens to be confiscated. Americans that did not comply faced large fines and/or jail sentences. In order to protect coin collectors, the only exemptions from the confiscation were rare or otherwise special coins.
The Bottom Line
No one is expecting the same sort of blatant civil and property rights violations that FDR masterminded back in the 1930’s, especially since our currency is no longer based on the Gold Standard. However, our modern government is clearly taking drastic steps to slow the public’s panicked flight away from the dollar and towards gold. Given the current state of our economy, we can only assume that there will be more measures to follow.