Dear Jim:
I just finished reading an article from the Gold Anti-Trust Action (GATA) group which quotes a Treasury Department official as saying “The U.S. Government has the authority to prohibit the private possession of gold and silver coin and bullion by U.S. citizens during wartime and declared emergencies…” I have also learned that the USG also considers “junk” pre-’64 silver coins to be bullion and therefore subject to confiscation when the situation arises. In talking with our good friends at Swiss America it appears that, currently, only coins minted before 1933 and having a numismatic grade of MS64 or better would NOT be confiscatable because they are considered to be collector’s coins and not bullion. Any other type of gold/silver bar or coin is not exempt. I would appreciate your comments on this please. – Dr. Sidney Zweibel
If there were a monetary crises, I think that gold confiscation would be far more likely than silver confiscation. The sheer weight and volume of silver versus gold would make any government silver confiscation scheme problematic. (Since dollar for dollar, silver is seventy times bulkier than gold.) This is just one the reasons that I prefer investing in silver rather gold.
IIRC the U.S. 1933 gold ban law exempted any gold coins “with significant collector’s value.” Therefore in the event that similar legislation is enacted, presumably any coin that is graded at or near mint state (MS-60 or higher–or perhaps even AU-58) would be exempt. Why pay so much more, for MS-64 coins? AU-58 and MS-60 $5, $10, and $20 gold pieces can still be found for as little as 30% over their melt value if you buy coins with common mint dates.
OBTW, for any SurvivalBlog readers considering investing in numismatic coins: Unless you have experience with coin grading, then I recommend that you buy only PCGS or NGC “slabbed” (professionally graded and encapsulated) coins. Buy only from a reputable dealer such as Swiss America.