This article was submitted by Claudio Grass, managing director at Global Gold in Switzerland, as a newsflash that the company officially published.
Last year the Illinois senate passed a bill called SB3341 or “Precious Metal Purchasing Act.” The bill is still pending approval of the house. However, it is likely just a matter of time until the act is approved. In essence, the bill obliges persons in the business of purchasing precious metals to obtain proof of ownership, create a record of sale and verify the identity of the seller. It is also prohibited to pay for the precious metals in cash. All payments have to be carried out electronically. The precious metals dealer also has to keep records for sale for at least one year or even up to 5 years if the transaction value is over 500$. Furthermore, all collected information has to be reported to the local law enforcement agency.
At Global Gold, we have been warning for a while now about possible financial repression and confiscation measures by western governments. This bill basically creates a paper trail for gold; it does not go beyond that. However the information gathered under the bill might be extremely helpful to governments at some future point in time, when they decide to outright confiscate gold or create some form of “special tax” on gold holdings.
We are convinced that it is of upmost importance to hold precious metals in jurisdictions which have never confiscated gold in the past and believe in the importance of property right. In an earlier article, we wrote the following:
“Desperate times call for drastic measures.” That will be the argument of governments worldwide when hyperinflation hits. Private property rights will be suspended and the phase of outright confiscation will start. Governments in desperate need of financing will start to nationalize corporations, homes, farm land … and they will probably confiscate precious metals as well.
In the same article we shared several tips on how to protect your assets in case of a random confiscation:
- Storage outside of the banking system
- Diversification across safe jurisdictions
- Avoid countries which have confiscated gold in the past