There are a lot of misconceptions around the legality of owning gold bullion. Laws have changed quite a bit over the years, so some people may be following outdated information. If you’re considering investing in gold, it’s important to understand whether or not it’s legal to own. Below, the precious metals experts from First National Bullion and Coin, the gold dealers Carlsbad collectors trust for expert advice on buying precious metals, share the facts about the legality of owning gold bullion.
Owning Gold Was Made Illegal as a Response to the Great Depression
The idea that it’s illegal to own gold bullion dates back to the 1920s. When the stock market crashed in 1929, the well-to-do rushed to convert their bank funds to more reliable gold bullion. This left the government without enough gold to back newly printed money. Therefore, President Franklin Roosevelt used his executive powers to make it illegal to own gold coins or bars. People were given a month to turn over their bullion to the Federal Reserve in exchange for paper money, and anyone caught with gold after a certain deadline faced fines and imprisonment.
President Ford Reversed the Prohibition on Owning Gold
This rule continued for decades. Even after President Nixon ended the gold standard, gold bullion ownership continued to be illegal. By that point, Americans were mostly used to the idea that owning gold wasn’t legal, so few questioned it. When President Ford came into office, he was completely unaware of the ban. After Jim Blanchard, an advocate of sound money policies, brought the issue to Ford’s attention, the president then moved to repeal the ban. In 1975, Americans were allowed to own gold again.
There Are Currently No Limitations on Owning Bullion
This state of affairs has continued through modern times. Gold bullion is entirely legal to own. There are no rules about how much gold you can have or what form of gold you’re allowed to own. Furthermore, there are no restrictions on how you purchase the gold. As long as you don’t use currency, you don’t have to report your gold purchases to the government, even if you spend more than $10,000.
Owning Bullion Isn’t Likely to Be Made Illegal Again
With gold bullion’s status changing over the years, many people are cautious about investing in it. If you prefer to let history inform your investing, gold can seem risky. No one likes the idea of suddenly being pressured to turn in their gold for currency at a federally mandated rate. However, the chances of this happening are extremely low. Virtually no major politicians advocate returning to the gold standard, since this would cause financial chaos. Without the existence of the gold standard, the federal government would have no reason to ban gold ownership again. Furthermore, the original gold ban happened during an extreme emergency when the federal government had more power. Current limits on federal oversight make it almost impossible for any official to outlaw gold.
If you’re considering buying gold, don’t let misconceptions guide your decision—seek advice from trustworthy professionals with years of expertise. No matter what type of precious metals they’re looking to buy or sell, from palladium bars to silver bullion or gold coins, Carlsbad residents trust the reputable dealers at First National Bullion and Coin. You can rely on our experienced professionals when you’re looking to add precious metals to your collection or investment portfolio. Call one of our precious metals experts today at (760) 253-8072.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.