Earlier this week I discussed two recent blog posts by economist Martin Armstrong concerning what he thinks is the most effective way to possess and retain physical gold in the face of government confiscation.
My understanding was “genuine old coins,” as:
Coins are better than bullion for they have some historical value. Their historical value could be an excuse to prevent confiscation if government simply declares that “gold is for criminals,” as they are trying to do with cash…
Another take on this comes from offshore expert Mark Nestmann, head of Phoenix, Arizona-based The Nestmann Group, who pointed out the following on The Silver Bear Cafe website some time ago:
Some coin dealers claim that numismatic (collector) coins would be exempt from any future government confiscation of gold and silver. This claim is based on the terms of Roosevelt’s 1933 emergency order, which specifically exempted “coins having recognized special value to collectors of rare and unusual coins.”
Some firms say that premiums of at least 15% over the spot price of bullion magically turn coins “numismatic.” This notion is based on a proposed federal regulation issued in 1984, but never adopted. Other dealers claim that coins 100 years or older are automatically converted to numismatic status.
It’s beyond me why anyone takes these claims seriously. Why would a government that stole its citizens’ property in 1933 be consistent when it does so again?
Nothing obliges the federal government to pay by the same set of “rules” it imposed 75 years go. Nothing obliges the federal government to honor the terms of a proposed regulation issued a quarter century ago. And naturally, those rules can change at any time…
(Editor’s note: Bold added for emphasis)
What Nestmann wrote has stuck with me as I keep coming across the debate over what makes a coin “numismatic.” I even stumbled on the following just the other night on the website of a company offering asset protection services:
For a coin to be numismatic, its retail price must be double the value of its metal content.
Perhaps all for naught, according to Nestmann?
An insightful piece (he does espouse positioning “some gold and silver bullion outside the United States, preferably in a safety deposit box or a private vault”), which you can read in its entirety here on The Silver Bear Cafe site. For more information about The Nestmann Group, visit their website here.
By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)
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