Your gold could be confiscated, warns E.B. Tucker, here’s how

let's go back to gold for a second here we saw a record um inflow of retail activity in the last few months in the wake of the pandemic everyone's rushing to gold for safety now i i read this fascinating chapter in your book uh tell the audience the story about your grandfather and gold confiscation back in 30s well his his mother called the four children into the living room of their house and and she sat them down and opened up a cigar box filled with gold coins from the 19th century and she told all the kids they could pick one coin you know roosevelt had had declared gold illegal for private ownership but you could have up to five ounces she had four kids and herself and her husband so they they kept a few ounces and the kids got to pick one out my grandfather told me in vivid detail what this was like i mean he was a teenager at that time and uh and then she took the gold down and exchanged it for for the the federally mandated price of roughly 21 bucks uh an ounce and then quickly thereafter roosevelt raised the price to 35 so that was a big devaluation now i always was upset with my grandfather is passed now i said well why why did she why did she sell out like that you know why would she do that and he told me he said listen you gotta understand something every single newspaper had editorials about how gold was a they were they were demonizing gold and so if you were to have kept all this gold you know you you would have thought surely you're a traitor you know you're against the us so that so there was a quite a big media campaign against gold at the time and everyone turned in the gold the government needed the gold and the us had the dominant gold position in the world and they maintained that until uh you know really the early 70s late 60s when things kind of fell apart and we walked people through that in the book now how does that relate to today well you were saying everyone's rushing to gold it feels that way because you work at kitco and i'm in the royalty business you know with metallo on the on the board of italia so yeah it looks like everyone's rushing into gold but believe me david they're not i mean go to a dinner party with average people your contemporaries and ask how many people own gold almost no one and they'll say well i've watched the price recently or i saw something on tv about gold but i'm just not sure about it right so actually not very many people own gold and if you look at you know in the book we did what if two percent of all the world's investment assets went into gold there's literally not enough gold on the planet to to provide that much gold to people two percent so the the percentage of assets the average person has in gold is is microscopic and so just the tiniest bit of demand has kicked off this rally right now you won't believe what real demand would do and we're still a long way from that this is early innings okay just going back to the story because uh why would you buy gold if offline you were telling me that the government can still have the authority to confiscate your holdings i want to show the viewers this uh this newspaper clipping that you included in your book how likely is it that what happened to your grandfather could happen today highly likely in fact more likely uh now the the methods and the means okay so so the methods and the means change over time but the general principle does not change now i do think it's likely that gold runs into the same problem it did in the 30s but it's going to look different now today for instance you could have a campaign against gold but at a much higher price see right now not enough people own it so gold confiscation doesn't come into play until it's a much higher price now back in the 30s while the gold price was fixed the actual value of gold was much higher so people that were connected and had advanced notice of this a lot of them moved their gold overseas where it traded in the free market and it had already broken well above the fixed u.s price now nowadays gold trades freely you can go to kitco.com and you can buy ounces of gold pay a premium for them they get delivered you can buy that right now okay so so the the supply is very tight the price is rising that's going to keep rising price gets high enough there's a demonization campaign again confiscation is going to look different it's not going to be newspaper articles and editorials urging people to turn the gold in don't be a traitor this time it would be with some sort of legislation and likely an excise tax so remember when aig bonuses were were the the target of everyone's rage in 2008 and the government said okay you can keep those bonuses but you're going to be assessed a 90 or more tax on that bonus so if you said to people okay go ahead keep your gold it's illegal to sell it and if you you know if you sell it through legal channels then you're assessed a very high excise tax on that gold because the the you know you're a trader if you have that gold all right that's how it would look today you know we're in a digital system now so it's very very difficult for you to conduct business that's not within that digital system you could say bitcoin okay but look in florida where i live a couple of teenagers just ran a twitter scam and they got a bunch of bitcoin from people and they got caught and part of the reason they got caught is because they tracked down the bitcoin because they were trying to to launder the bitcoin and they tracked down the bitcoin so let me tell you bitcoin is not exactly an anonymous currency all right gold is an anonymous currency and at some point it'll it'll it'll be a target for the powers that be and it's a very logical course that it's on but much higher prices david that doesn't happen at two thousand dollars uh okay so two part question what is this higher price that they need and second what's in it for the government why do they need to make this legal and confiscated they don't need the money they can just print more money with mmt correct they can print more money with mmt and they will print more money with mmt but this is about control so as you see the gold price moving higher it's a vote of confidence against the dollar and people that control the dollar that are in power i mean i say in the book the power of the us dollar is the fact that you've got all these nuclear-powered aircraft carrier groups and submarines pointing at people in the world saying you're going to use the dollar well that doesn't last forever i mean in fact david nothing in life lasts forever everything is is constantly changing and the change right now is is putting the dollar's dominant position in jeopardy and so it's not about money it's about power and gold is is is real money that cannot be it's unadulterated it cannot be uh it cannot be altered by aircraft carrier groups and submarines and and people in power and so and and so the dollar is only as good as it's as the ability of the people that print it to force you to take it and so gold is a is the only asset in the whole world it's not someone else's liability that's a very important that's a very important feature in in in a time like this do you see any correlation between the government's ability or right to uh confiscate your personal wealth and control your wealth like you explained and are loss of civil uh civil liberties absolutely absolutely i mean back in back at one point you know when my grandfather was younger he told me that they had you know they had a ten thousand dollar bill they had a thousand dollar bill did a 500 bill now you have a hundred dollar bill i mean in las vegas a hundred dollars is breakfast i mean you can you can forget about it and then if you if you go get your winnings and it's over a very small amount of money you fill out copious amounts of tax forms you know so so so the the concept of of financial freedom is very warped in the us you know and and i think for the system for the powers that be to hold on you know you've got to make sure you have control and control today you know is is is well in place it's very difficult to operate outside of the system now don't get me wrong i'm not advocating people operate outside of the system i'm just saying that over time the less free a system is the less opportunity is in that system a free system is where opportunity lies but as you contract that freedom you also contract opportunity and in the us that it's under pressure the system the ability the meritocracy of the u.s is changing right now and people people they they give it lip service but you look at your perception of the us as as a land of opportunity and you look at the reality of the us as a system of draconian laws and and you know thousands of pages of tax legislation and and uh too many government acts to count and six hundred dollars for unemployed people and you know extra ppp loans for people to buy lamborghinis in miami and some people get forgiven and some people don't get forgiven this is what creates bubble crisis bubble crisis because recessions naturally sorted things out there's no such thing as a recession where a bad business operator gets a ferrari because he gets some free money you know he he has to hustle and and work night and day to save his business and he has to make wise decisions in a capitalist system but not in a not in a crisis system all you have to do is get a lawyer and get the lawyer to tell you how to fill out the ppp forms and the ppp lp and the talf and the cares heels act and you do all that stuff you don't even have to worry about the actual business you're in it's all about playing the game but that game is not a capitalist game have you observed a trend of diminishing financial freedoms um here in the in the us in recent times if you look back at history how um past crisis have formed uh people have usually in the past been more willing to relinquish their freedoms to the government during periods of extreme crises uh would you say that could be happening today yeah absolutely i mean hidden buried and all these buried and all these things is a new a new this a new that order i mean i i have a very uh a complicated tax situation and and i've got a a firm that helps me with this and i get these messages from the the firm to inform me about this new code and this new thing i mean it the tax return ends up being 400 pages long and there's no possible way that any person with a high level of intelligence can keep up with this so for 400 page tax return you know is is is totally insane and let me tell you something it's going to be 600 pages soon it's not going to be not going to be four pages that that would be a free and easy society this is not the way we're going i mean i mean buried in all this stuff is very complicated measures and it always comes like this i mean remember the patriot act patriot sounds like uh something that's good you know your patriot patriotic duty all these things you're taught in civics class but the patriot act made it almost impossible for me to have canadian brokerage accounts almost impossible i mean you can do it but the cost and the paperwork and the i mean i have several of them that it's unbelievable the things you have to go through you're basically proving you're not a terrorist so that you can have stock in a canadian brokerage account you know and participate in financings i mean it's that's that's not free and easy that's that's really expensive not easy cumbersome complicated and most people frankly don't do it now i'm not saying it's all bad i mean the patriot act i mean look i mean what this is this is the the trend is the trend okay david the the the secret to life okay to to to being successful in the business that we're in is to letting go of your your preference that things be a certain way and going with the flow you know you you don't stamp around and and pout and have an ideological argument against what's happening you let go and you go with it doesn't mean that you like it but you go with it and you use your perception to see what's happening and then you position accordingly that's what we're doing with gold right now we don't we don't have a hardcore determined beliefs about gold we understand gold we know the business we've been in it for a long time we know we know how to make money in the investing markets [Music] you

Channel: Kitco NEWS

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Keywords: gold, silver, finance, news, investing, investing news, finance news, financial news, economy, precious metals, gold price, silver price, gold price today, macroeconomics, u.s. dollar, modern monetary theory, recession, stock prices, stock market crash, sp500, eb tucker, negative interest rates, federal reserve, jerome powell, quantitative easing, gold price prediction, wealth, inflation, hyperinflation, deflation, gold confiscation

Id: HJIShMETtYY

Length: 12min 53sec (773 seconds)

Published: Fri Aug 07 2020