Assets like Bitcoin and stocks aren’t the sole contenders for all-time highs. Consider the value of gold, which now surpasses $2,250 per ounce, marking a staggering 38% surge from its lowest point in 2022. Despite this peak, gold continues to capture the attention of many.
Gold has undergone a lengthy journey before reaching its current high levels in the post-pandemic era. Throughout history, there have been periods where possessing gold was not just discouraged but prohibited and seized by authorities during times of economic turmoil.
While the idea of gold confiscation might seem improbable to investors accustomed to dealing with stocks and bonds, or to anyone looking to buy gold, governments have, in the past, resorted to seizing gold reserves from private citizens during periods of economic distress.
It’s useful for investors to familiarize themselves with historical instances of gold confiscation, despite its seeming improbability, as a precautionary measure. Here’s a brief overview of notable gold confiscations over the past couple of decades:
- In the United States, President Franklin D. Roosevelt issued Executive Order 6102 in 1933 during the Great Depression, prohibiting the hoarding of gold and requiring citizens to exchange their gold holdings for US dollars at a fixed rate.
- Australia saw gold seizures from private citizens authorized by the Banking Act in 1959, allowing for the confiscation of gold in exchange for paper currency under certain circumstances.
- Great Britain implemented restrictions in 1966 to curb the outflow of gold from the country, limiting private ownership of gold coins
