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Gold?
by David Stanowski07 June 2009
Abstract:In the late 1970's, I fell in with the originalGold Bugsand I began buyingGold and Silver, however, eventually, I discovered technical analysis, andsold near the top, before the 19-year decline began.With the current unprecedented financial crisis, the Gold Bugs are onceagain making a very compelling case that those who do not buy Gold willsee their money become worthless, and be faced with financial ruin.However, what is the possibility that they may be totally wrong, andinvesting in Gold will lead to major losses?This is one of the most critical questions of our time! Introduction:From 1793 to 1861, the price of Gold stayed in a very narrow price rangebetween $20 and $21 per ounce until the inflation caused by monetarypolicy during the Civil War pushed the price up 135% to $47. After the War,the price trended lower for many years until it was back down to $21 whenthe Great Depression arrived. In one of the most draconian moves of theNew Deal, FDR signedExecutive Order 6102which made it illegal for Americans to own Gold, except for jewelry and small quantities of certaincoins minted before 1933.
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The Order required people to surrender their Gold to the Federal Reserveon or before 01 May 1933. Violation of EO 6102 was punishable by a fine upto $10,000 ($164,000 in today's Dollars), up to ten years in prison, or both.How Americans Lost Their Right to Own GoldCitizens were paid $20.67 per ounce for their Gold, when it wasconfiscated, but shortly after this forced sale, the price of Gold for international transactions was raised to $35 per ounce; instantly devaluingthe Dollar by 69%!The Gold Reserve Act of 1934 officially changed the value of the dollar inGold from $20.67 to $35 per ounce. From 1934 to 1968, the price of Goldremained virtually unchanged at $35.On 17 March 1968, the effort to control the private market price of Goldcollapsed, so a two-tiered price system was established that kept allcentral-bank transactions at $35, but the free market was allowed toestablish its own price. The market price immediately jumped to $43!The free market price remained in the $40 range until 15 August 1971when Nixon announced that the United States would no longer convertDollars to Gold at a fixed value, thus abandoning the Gold standard for foreign exchange, and opening the door for major price increases.The limitation on the ownership of Gold in the U.S. was finally repealedwhen President Gerald Ford signed a bill legalizing private ownership of Gold coins, bars and certificates which went into effect on 31December 1974.Gold Prices Year End:
 
1793-1813 $19.391814 $21.791815 $22.161816 $19.841817-1833 $19.391834-1836 $20.691837 $21.601838-1840 $20.731841 $20.671842 $20.69
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1843-1856 $20.671857 $20.711858-1861 $20.671862 $27.351863 $31.231864 $47.021865 $30.221866 $28.261867 $27.861868 $27.951869 $25.111870 $22.881871 $22.591872 $23.191873 $22.741874 $23.091875 $23.541876 $22.301877 $21.251878 $20.691879-1932 $20.671933 $32.321934-1939 $35.001940 $34.501941-1942 $35.501943 $36.501944 $36.251945 $37.251946 $38.251947 $43.001948 $42.001949 $40.501950 $40.251951 $40.00
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cash for gold

people should take advantage of this great opportunity now that is has come again..

reply12 / 12 / 2009
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