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Lepista

If Gold (and Silver) Isn't Money...

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...then why, throughout history, have governments tried to ban people owning it?

That's not true though is it? FDR aside, who did that?

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That's not true though is it? FDR aside, who did that?

I think the commonwealth & japan had controls after WW2. I'm sure you can dig up links for most countries (except switzerland .. ) over the centuries.

http://www.austlii.edu.au/au/legis/cth/con...5972/index.html

PART IV--GOLD

40. Operation of Part

41. Transfer of gold out of Australia

42. Delivery of gold

43. Vesting of gold delivered

44. Payment for gold

45. Limitation of sale and purchase of gold

46. Limitation on working of gold

47. Application of Part

48. Exemptions

http://www.austlii.edu.au/au/legis/cth/con...195972/s42.html

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That's not true though is it? FDR aside, who did that?

Gold bullion ownership was legalised by Mgt Thatcher IIRC. Also lifted currency controls. I still remember when you couldn't take money out of the country.

In the news today that China is allowing bullion ownership.

I don't know other examples off the top of my head but bullion ownership is all very recent. Even now the UK government wants to know if you buy more than 5K worth so that they can mark you out as a sucker when they introduce wealth tax.

Governments have always preferred people to store their wealth as land, cows, or money in the bank because they can help themselves to it whenever the need arises

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That's not true though is it? FDR aside, who did that?

I am a bit astounded by that remark. Not only have all governments had controls of one kind or another in this century, but the USA still (theoretically) has the death penalty for debasement of the currency, and it is also still (theoretically) illegal to call ANYTHING money except gold and silver. It's in the Constitution.

I would suggest you consider some other points, too. I agree that those who "run" and "own" the country do so entirely for their own selfish benefit; so...

1) Gold has recently had the VAT lifted by (of all entities) the EU. A more self-serving, snout-in-the-trough organisation you won't find anywhere, so they must have done it out of self-interest. In other words, they regard it as currency, an investment vehicle par excellence. And they want it for private gain, or they would have kept VAT on it, since companies can reclaim the VAT element. The inevitable conclusion is that the politicians of France and Germany (who have long memories of wars and hyperinflation) STILL regard it as the ultimate, final form of wealth preservation - money.

2) Silver, at the moment, is worth much less than gold. In the future, this may change. Platinum may presently be more expensive than silver, but where industrial uses are concerned, silver is far more valuable in the sense of a lack of substitutes. (I'm sorry if my English is not very clear, but I hope you get my drift). Silver may in future explode in value, particularly if many people keep it for investment. We, as a planet, throw far too much silver away in landfill, as it is supposedly too difficult to scrape off the little contacts and suchlike. IMHO, it certainly won't be used as cheapo jewellery for much longer, when there are no really good substitutes for the metal in electronics.

3) In living memory, silver bullion was illegal in the UK for private citizens to own. My thoughts about that, in view of the present alleged price manipulation and the moral quality of politicians, are unprintable, but it doesn't alter the historical facts.

4) Gold is still perfect as money. It is rare, fungible, divisible, etc, etc. As it is virtually useless as an industrial commodity, the needs and fluctuations of industry do not intrude on the price and availability in the way that will happen to silver in the future.

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