The “Zero Hour” Scenario (Default On Precious Metals)

The Daily Reckoning ^ | 3-10-2013 | Addison Wiggin

[Vineyard]

One can set up a “Precious Metals IRA” ...

PMs placed in IRAs must be 99.9% (or better) purity.
American Eagles are legit for a PM IRA.

The old silver coins (pre-1964) were 91% purity, so old silver coins CAN’T be used in PM IRAs.

IIRC - there are also old US gold coins that, like South African Krugerands, are around 91% purity - and therefore not eligible for inclusion in a PM IRA.

[yorkiemom]

TF: “...and when the government then demands that you turn in all your gold to them and makes it illegal to own gold (this was done before)...what are you going to do then?”

Shoot first, ask questions later. :)

If one wanted to hold onto it. The problem becomes when you want/need to sell it - and it is not sellable. (Unless you know some underworld types that you are willing to deal with).

[yorkiemom]

The South African Krugerrand is 1.1 ounces, 1.0 ounces is gold and the other .1 ounce is copper. Pure gold is to soft to make into coins without an alloy. The copper gives the Kruggerrand it's distinctive 'red' hue. I bought many of these in the early 90's for $382.00 each.

Thanks for the info. I had been wondering how gold coins manage to not get damaged through the years, since pure gold is soft. I didn't expect that every collector was ultra-careful.

[yorkiemom]

Do not keep PMs in your gunsafe, home, or other obvious place.

Even if someone doesn't know you have PMs, just seeing a gun safe will clue them in that you have something worth stealing. Safe deposit boxes are also suspect, since I don't trust the government to stay out of them. Hiding within the walls of a house or something similar is dangerous in the event of fire.

[Diana in Wisconsin]

Well, Plan B is to wait for the government to come to their senses, then...WAIT! What am I talking about? LOL!

I’ll liquidate before that happens, and turn those hard assets into other hard assets: land, a paid off farm and more ammo, etc.

I watch this stuff EVERY day - they’re not going to catch me unawares.

And I have an excellent broker that I deal with, face to face. He’ll call me if he sees anything hinky on the horizon as well. :)

[Travis McGee]

Are you new to this? A one ounce gold coin contains one ounce of gold. If they are soft pure 24C gold, the coin weighs one ounce. (Troy, of course, we are talking about.)

If they are harder 22C gold, they still contain one ounce of gold, plus copper, silver and other metals to make them harder and more durable. In that cases, the coins weigh about 1.1 ounce, with 1.0 ounces of it being pure gold.

Really, you didn’t know this?

[Travis McGee]

Mine fell out of my canoe with my guns.

[yorkiemom]

Well, Plan B is to wait for the government to come to their senses, then...WAIT! What am I talking about? LOL! I’ll liquidate before that happens, and turn those hard assets into other hard assets: land, a paid off farm and more ammo, etc.

Good plan (the latter, that is!). I wonder - when Roosevelt confiscated gold last time - he did pay the FMV for it?

[Travis McGee]

Some coins are “soft” pure gold. Canadian Maple Leafs, Chinese Pandas, and some others. Normally they are each kept in a little plastic case, except for inspections at sale. They can ding each other up if stored against one another.

[silverleaf]

portability and recognized content and a market value based on those factors

I’m not paying anyone for “gold bullion” from some 3rd world country

[rdcbn]

I guess we are finding out how the whole idea for the 12 trillion dollar Platinum coin which washes away or backs all of our National Debt came from.

They have been doing pretty much the same thing with gold for the last decade or so.

[Jack Black]

"Why would anyone pay the spot price for 1oz of pure gold (99.99%) for a 1oz coin coin that is only 91.6% gold?

The Eagle contains 1oz of pure gold, and a little bit of silver to make it a tougher coin. So you get 1oz of gold and aprox. 1/10th of an oz of silver thrown in for "free".

But I do prefer Maple Leafs myself.

[Former Proud Canadian]

Roosevelt decided what price to set for gold, and then confiscated it at that price. Was that FMV? Who knows?

[yorkiemom]

Some coins are “soft” pure gold. Canadian Maple Leafs, Chinese Pandas, and some others.

Bet they are pretty. The silver Maples sure are.

[yorkiemom]

Roosevelt decided what price to set for gold, and then confiscated it at that price. Was that FMV? Who knows?

Probably not, I'd guess.

[Diana in Wisconsin]

Trav! I’m CERTAIN you mean it’s lost at sea as it all fell off of ‘The Busted Flush.’ ;)

[Travis McGee]

“Why would anyone pay the spot price for 1oz of pure gold (99.99%) for a 1oz coin coin that is only 91.6% gold?”

I thought I was pretty gently, considering your statement on a gold thread.

[Travis McGee]

Yep. Just gotta take care of them, and keep them in their sleeves. Nothing is golder than pure gold. Krugerrands look like copper pennies next to them.

[doc11355]

Thank you very much!