In 1933, the United States Government convinced American citizens to voluntarily exchange their precious metals for market value in fiat currency. Many bought into the notion that nationalizing precious metals was a good idea. Although private ownership of silver and gold was made illegal during this time, “precious metals police” didn’t come knocking on doors to confiscate individual holdings. Some, but not all, who held silver and gold stores obediently sought out their due in currency at banks and exchange windows. Nixon voided the 1933 laws of exchange, and later collectible exemptions when he closed the gold window in 1971.
The current fiscal situation broadly mirrors pre-1933 nationalization laws. Paper currencies are losing value as the prices of precious metals rise. Today’s precious metals investors are more savvy and less obedient than in the 1930s. Most will likely be unwilling to trade their holdings for cash. Desperate governments could yet run roughshod over citizens in their quest for economic stability.
