I recently posted on the consequences of 40 years of gold confiscation, and that Congresswoman Marsha Blackburn (R-TN) announced that the Gold Standard and auditing the Federal Reserve is a part of the Republican Party platform. In 2003, Joan Langbord and some family members opened a safety deposit box that was owned by her father. Inside the box were ten rare gold coins, put there by her father who was a Philadelphia coin dealer. Ms. Langbord asked the Philadelphia Mint to authenticate the coins. The Mint took them, kept them and refused to compensate the family.
UPDATE 9-9-12 12:25 pm CDT: ABC News is reporting that a US District Attorney says these 10 coins were in a vault, intended to be melted. She says the coins were never in circulation and that they were stolen in the 1930’s, probably by a cashier (she does not accuse Ms. Langbord’s father of theft):
“They didn’t go out through the front door,” says Romero. “This was clearly a crime. The people of the United States were robbed.” The U.S. Secret Service probed the case in the 1940s, she says, and every coin they found in circulation traces back to Switt.
But the criminal case was never prosecuted because the statute of limitations had run out by the time the Secret Service got involved, she says. The government did recover at least nine coins and melted them down.
But somehow, 11 survived — the 10 that were in Langbord’s deposit box and one that was the subject of litigation in the late 1990s. It is believed to be the Double Eagle purchased by King Farouk of Egypt in the 1940s. ABC News
I can’t vouch for the truth of any of this, of course. Other than the concern of the Langbord family, is the fact that a U.S President confiscated gold in the first, place – at any time. That’s the Presidential and Congressional mindset that we must defeat.
The 1933 Saint-Gaudens double eagle is “one of the most sought-after rarities in history,” according to Courthouse News. Originally valued at $20 each, one owned by King Farouk of Egypt reportedly sold for as much as $7.5 million at a Sotheby’s auction in 2002.
The Langbords unsuccessfully sued the government in 2011, alleging that the coins are rightfully theirs, and now they have the appeal.
Jacqueline Romero, assistant U.S. attorney in Philadelphia, explained that the coins legally belonged to the government after Franklin Delano Roosevelt ordered citizens to exchange their gold for cash in an effort to keep the banks afloat during the Great Depression.
In my previous article, I quoted ZeroHedge:
● First, in order to make the confiscation legitimate, the US government required the delivery of all gold coin, bullion, and certificates to be concluded by May 1, 1933 in exchange for $20.67/ounce.
Several months later, the new, official gold exchange price (which however was merely the government’s bid as nobody could actually buy gold at this price) became $35.00, which remained until 1971 when the last trace of the dollar’s pseudo convertibility into gold was wiped out by Nixon. In effect, what FDR did was to devalue the USD by 70% overnight.
● Second, not only did the government remove the incentive for ordinary citizens to hold gold by establishing price and criminal controls over possession, it also changed the rules in the middle of the game allowing it to build up a massive gold hoard of over 8000 tons today which is maintained at Fort Knox, and is, to the best of our knowledge, unauditable by any mere mortal.
Critically, it made the US government the sole source and monopoly agent of gold purchases, using reserve fiat currency it could print with impunity, beginning in 1933 and continuing through 1974 when the limitation on gold ownership was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates by an act of Congress codified in Pub.L. 93-373, which went into effect December 31, 1974.
In summary, the US government, which is now the largest official holder of physical gold in the world, had 40 years of uncontested zero cost gold accumulation in which it could build a gold inventory that was second to none.