Friday, May 23, 2008

Government Rations Silver Coins - Is Gold Next?

I knew this was coming. Long-time readers know my adage:

You can take gold out of the standard, but you can't take the standard out of gold.

I guess the same applies to silver.

silvereagle
[Thanks to Goldline.com for the image.]

According to this article at the Wall Street Journal, buyers are beginning to hoard 2008 silver dollars, and the government has now started to limit their sale.

Will gold be next?

As it stands, the government already taxes us on gold sales under certain circumstances, depending upon your country and state of residence. You understand the reason for this when you consider what the governments of this world have to lose.

You see, if they were to allow gold to be bought and sold without some kind of discouragement like a sales tax, capital gains tax, or some such, and if people were suddenly to decide that gold and silver were better stores of value than paper money, governments could lose control of money, the value of paper currency would sink like a split canoe, and, as the saying goes, all hell could break loose.

Keep you eyes open for further events in this regard. Looks like the government is getting squeemish about the public's awareness of our current commodity bubble that may turn into a run on gold and silver; and the government may just try to do something about it before that happens.

Gold and silver fans: Beware Big Brother.

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