Is Owning Gold Legal?
There was a time, for forty one years that it was illegal to own gold. In 1933 Franklin D. Roosevelt made it illegal for any person in the United States to own hoards of gold. The ban was not lifted until legislation was signed in 1974 by President Gerald Ford. Although the new bill did not do away with the Gold Clause Resolution of 1933, people could now buy and trade gold as a commodity.
This all happened after the great depression. Foreign banks, who were afraid of the failing economy, were turning in their paper money in exchange for gold. This was depleting the gold supply in the U.S. Reserve. Up until then the United States had been on the gold standard. Many dollar bills, like the fifty, were printed with a yellow back which indicated it could be turned in for the gold rate.
The Executive Order 6102 made it illegal for anyone to own more than $100 worth of gold. Citizens had to turn in their gold in exchange for paper money. The gold coins were melted down into bars by the U.S. Treasury department. This was done to keep the U.S. dollar afloat and avoid panic in the overseas market. The tactic worked.
However, not everyone turned in their gold coins. There are still a few in private collections. These coins are considered a rare thing and extremely sought after by collectors and coin dealers everywhere. Certain $20 gold coins can range in value from $500 to over $20,000 depending on the marks and condition of the coin.
Gold is a timeless investment. The value has gone up considerably more and more over the years. This is simply because of the law of supply and demand. The mines are not producing enough gold to satisfy the demand. Banks were selling their reserves and keeping the prices more stable. Now that they are holding on to the gold and the demand has increased, the prices are climbing. It is expected to peak at about $1,000 per troy ounce by mid summer of 2008.
Investing in gold is a wise choice. The price is constantly going up. The demand is also growing. The ability to have it with you and easily transport it is a benefit. The fact that it is a tangible product that never loses value is the best reason to invest in gold. Now that the U.S. Treasury has made the coins available on the open market, anyone who ever thought of investing in gold can do so.
