The Next Gold Confiscation: What It Could Look Like... And How To Avoid It

In 1933, President Franklin D. Roosevelt issued Executive Order 6102, making it illegal for US citizens to own gold, forcing them to sell at a low price or face penalties. Many fear the US government could resort to gold confiscation again if desperate enough. However, the government's financial situation is deteriorating, but a 1933-style gold grab is unlikely. Instead, the government could print money and debase the currency, stealing wealth quietly. Gold owners shouldn't feel comfortable, as the next threat may come in the form of a punitive windfall-profits tax on gold. There is precedent for this, such as the 1980 Windfall Profit Tax Act, which levied up to 70% on oil producers. A windfall profit is whatever politicians say it is, and a gold windfall profit tax could be even more dangerous. To protect yourself, you can own gold in a Roth IRA, a tax-free zone, which is less likely to be targeted by a windfall-profits tax. This is a practical solution to avoid expropriation, and investments held in a Roth IRA are far less likely to be targeted.