Congressmen Weiner and Waxman Set Gold Hearing??

I don't know what were in for but I think the price and the attention gold is getting is really starting to create even more uncertainty than ever! At this point the price of gold will continue going up!! I'll look into this (Congress) issue a little more but what do you think?


http://commoditiesreporter.com/precious-metals/congressmen-weiner-and-waxman-set-gold-hearing/

Ira Stoll submits: Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television." From the press release: "Under Rep. Weiner's bill, companies like Goldline would be required to disclose the reasonable resale value of items being sold." That's great. Are Mr. Weiner and Chairman Bernanke also going to agree to print on every dollar the reasonable expectation that its value will be eroded by inflation? »

 

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I am not sure this will have any impact on collectors. The above people have problems that are more pressing than your gold collection.

Pep

 

It sounds like another back door job by the goverment? Oh please invest your $$$$ in this country,just in the areas we want/tell you to?? Every flood begains with ONE rain drop!

 

Ok, this thread can quickly evolve into one of political rants and ramifications, so limit it to discussion of the proposed legislation on bullion investing or it will disappear. Please notice that the main sponsors of the website above is Goldline, the company mentioned.

Jim

 

Could be the beginning of a return to 1933.
Gold confiscation and private ownership banned.

This government would rather do that than have something that competes with the dollar and highlights their reckless fiscal policies.

If you don't think it's possible, consider all the other things that our government has done in the last few years that no one thought was possible previously.


Edit:
I think 3 years ago my comments would fall into the 'political rant' catagory.
However, under the current conditions, I think it is not out of the realm of possibilities.
So, a comment about bullion investing that looks to an actual event in history on the subject, falls under the 'consider history, or be doomed to repeat it' philosophy.

If the mods still think this post was too political, then so be it. I'll respect that.

 

That may be the case with this site IN GENERAL, however, this specific forum is on "investing", not "collecting", so the emphasis will be totally different in discussions here. The average collector 'should' have nothing to worry about, but the investor could see this as a first step of many chipping away at their ability to hedge against possible hyperinflation... or just their right to 'life, liberty, and pursuit of happiness', if that involves buying a metal that is harmless to other's health and well being. Let them regulate my ability to buy plutonium if they like, but not harmless materials.

Edit:
That said, IMHO, I think gold is in a bubble.
When our society corrects itself, which I think it will, gold will fall to previous levels.

 

Gold was never "confiscated" in 1933. It was purchased and removed from the banking system. Individuals were permitted to retain five $20 gold coins per family member. They could put their gold proceeds into silver coins if desired, or just keep the money in the bank, assuming they had any. I asked my grandfather a long time ago if he turned in his gold. He said he never owned a gold coin in his life. I think his situation was typical.

This subject keeps coming up, but is really pointless. Gold is not used in banking and is not needed to manage the currency. In the highly unlikely event that the government decides they want the gold for some reason, sell it to them and buy silver or numismatic coins or buy a gold ETF.

This isn't 1933.

 

If this is truly just a crack down on the scam company's like Goldline or Cash 4 Gold then i support it 100%, but if this is some under handed way of attacking the entire gold investment market then i dont support it. I guess i will have to see how this turns out to decide if i support it

 

Part of the definition of a bubble is that the people experiencing it are unable to see the bubble. If they can see it, then it cannot be a bubble. After they completely missed the tech stock bubble, and the real estate bubble, the business press has taken to calling everything that increases in price a "bubble," just to make sure they don't miss the next one. That said, you need to consider that it isn't the gold that is in a bubble. It is something else. Gold is just reacting to the bubble, but nobody can see it because you need to invert the problem in order to solve it. Work on it and maybe you will find the real bubble.

 

Either gold is in a bubble, or it is the US dollar itself.
Either way, I predict the bubble, unseen as of this moment, WILL pop.
That is my opinion/prediction.
I think you are correct though that no one can see the bubble.

As for 1933, the reasons for government interference may not be identical to 1933, but they can interfere nonetheless.
I never said that the reasons were the same, just that the overstepping of government is more and more likely in the current fiscal state of our economy.

As suggested in this article, I believe the motives of the government are far deeper and more complex than just 'consumer protection'.
http://seekingalpha.com/article/225579-congressmen-weiner-and-waxman-set-gold-hearing


Edit:
Different article on the 'bubble'... My mistake.

 

There are a lot of people declaring gold to be in a bubble. As long as that is so, I feel safe. Regarding the OP, I think the gold hearings are for the purpose stated. The average consumer is prey for the TV ads. Real gold investors don't obtain their metal through any of the sources under investigation.

 

An ETF is like trying to see a body behind a sheet of shower glass.
Hard to see the details. I would stay away from that type of investment unless you are very knowledgeable. Then you would stay away from ETF.
Hold your own Pms in a safe.
My opinion only.

Pep

 

A purchase is when both parties consent to a sale... What the government did in 1933 was theft by any modern definition, peopel were forced to sell there private property at the point of a gun. you think People that say this could happen again are nuts? just look at your post, you use words like people were "permitted" like this is Russia and you make it sound like becouse the advantage man aka your grandfather did not have gold that it was ok to take it. Look around how many people do you know that own gold bullion vs people that dont

 

Neither the modern nor the archaic definition of 'puchase' differ so greatly as to render your point here any more valid... and you can keep spewing your misperceptions about this topic, redundant now as it is, but it doesn't make you any more right about it, though spell check might set you in the right direction to being a better lexicographer. :thumb:

 

Spell-check aside,
I agree with Luke.
History calls it "confiscation" because it was a forced transaction.
Saying the government bought out your gold, when you were not selling, is not a buy out. It is confiscation.

Edit:
I might add that gold became illegal to possess except for a few exceptions such as personal jewelry.
Not the sort of thing that a reasonable person would expect in a 'free' country, unless we are talking about harmful substances.

 

How is it not theft?

 

Regarding your first comment, I think you are nuts if you believe this will happen. I sincerely hope you don't. You have no understanding of history and the fact that gold is no longer the currency of the land, or used in international trade. If the government wants gold, they'll go to the Comex warehouse and take it, not go door to door or to the banks which don't have it anymore. And they'll spend the next couple of decades defending lawsuits by the extremely well-funded institutions who own the gold in the warehouse.

Regarding your second comment, I don't know anybody who owns gold bullion. That's why I'm still bullish on it. When more people start owning it, I'll know it's time to think about selling. I recall the 1979-80 gold bull market. Just about the time some of my co-workers began buying gold, the price collapsed. Look for a repeat.

 

The sellers were compensated.

 

The last few posts along this line are far from the OP, this thread is closed due to political diatribe.

Jim


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