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The Gold ban in the US

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The US Gold ban

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On March 6, 1933, US President Franklin D. Roosevelt banned the banks during the bank holidays the disbursement of gold and forex trading. Already three days later was accepted by the „Emergency Banking Act“ the President to influence the gold and foreign exchange trading. So the withdrawal of gold from the United States should be prevented. Then signed Roosevelt on April 5, 1933, the Executive Order 6102. This private gold ownership in the United States was prohibited from 01 May 1933rd The Gold ban came into force.goldverbot-4128

The exact wording of the law, from the first draft to the binding version, can be viewed here: legal text of gold ownership ban in the US.

Background of the ban was the Great Depression, which began on 24 October 1929, the black Thursday and brought massive impact as deflation and collapse of banks with itself. Gold gained more and more value. Many US citizens now hoarding their gold reserves at home or managed them abroad. This should be countered by the gold ban.

The confiscation of gold due to the gold ban was on April 5, 1933 final and affected all gold coins, gold bullion and gold certificates. Everything had to be submitted by 1 May 1933, state acceptance points at a fixed price of $ 20.67 per troy ounce. Only jewelery, gold for industrial purposes, art or craft and gold coins up to a value of not more than 100 USD were allowed to keep the citizens. In addition, the private collection of historic gold coins was allowed to continue. The ban was also restricted to the domestic, gold holdings abroad was not initially affected.

Unlike the voluntary contribution, in which US citizens were said minimum compulsory compensation, was the gold that was found in state-ordered searches, confiscated without compensation. The United States also did not shrink in the search for gold back before the violent opening of private safe deposit boxes that were systematically searched.

With offenses imprisonment of up to 10 years and / or up to $ 10,000 penalty could be imposed.

In 1961, the then US President Dwight D. Eisenhower, the Gold ban expanded again. The outflow of gold from the United States should be stopped completely, and so was the gold ban, which has been limited to the private ownership of gold domestically, extended to the private ownership of US citizens abroad. All US citizens and companies were allowed to keep any gold or redeemable for gold securities in foreign deposits and it was forbidden to take part at all in the gold trade. Also in this case threatened severe penalties for offenders. Excluded were again rare gold coins.

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In the following years, then the import of embossed before 1933 gold coins rose rapidly. Their possession was indeed allowed to remain. 1962 forbade President John F. Kennedy now the domestic ownership of gold coins, which were minted before 1933 and were imported from abroad. A possession of gold coins and an import in the US was now strictly forbidden. All the expatriate coins of US citizens had to be brought back into the country. The government wanted to allegedly counteract the increasing counterfeiting and Copies.

However, this meant that the price of gold coins in the US increased massively. Also, it now has been a huge increase in smuggling activities.

The Gold ban on US citizens was for 41 years and was abolished on 31 December 1974, President Gerald Ford.

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