Greetings, millionaires and future millionaires! Have you ever come across a historical fact that made you stop and wonder, "That's odd. Why?" Today, we’re exploring one such extraordinary moment in American history that’s bound to leave you amazed.
In 1933, during the depths of the Great Depression, President Franklin D. Roosevelt took a remarkable and very questionable step in American history: he signed Executive Order 6102, making it illegal for Americans to own gold. Hmmm. Yes, you read that correctly. It was against the law to possess gold!
"Why?" you may ask.
The Great Depression was a period of severe economic turmoil for most of America. Banks were failing, unemployment was rampant, and trust in the financial system was dwindling. Many people were hoarding gold as a safe asset, but this created a significant problem for the U.S. economy and government. The U.S. was on the gold standard, meaning every dollar was backed by a specific amount of gold. With so much gold out of circulation, the government couldn’t print enough money to stimulate the economy...or by another's opinion, they government couldn't get their hands on the people's gold, so a law was created to "confiscate" real currency, gold, and replace it with fake currency, paper money. As I've been getting older and wiser, I've learned there's usually more to the story where our Government is concerned. What some call conspiracy, others call it truth.
In any case, as history tells the story, That’s where FDR came in. To revive the economy, he needed to increase the money supply. By making gold ownership illegal, the government could collect the gold, boost its reserves, and print more money.
How Did It Work?
On April 5, 1933, Executive Order 6102 was issued, mandating that all Americans turn in their gold coins, bullion, and certificates to the Federal Reserve in exchange for paper money. Non-compliance could result in hefty fines or imprisonment.
In typical government fashion where things seldom work in favor of the citizens, our government paid citizens $20.67 per ounce of gold, which was the prevailing market price at the time. Subsequently, the Gold Reserve Act of 1934 revalued gold at $35 per ounce, effectively devaluing the U.S. dollar and increasing the gold reserves held by the government.
The collected gold helped stabilize the economy, allowing the government to control inflation and support the banking system. The gold ban remained in place until 1974, when it was finally lifted, allowing Americans to own gold once again.
The Impact and Legacy
This bold and oppressive move by FDR is still a topic of debate in America. Some view it as a necessary step to save the economy, while others see it as an overreach of government power...and it is. Regardless of your perspective, there’s no denying its impact on the financial landscape of the time.
Today, the gold ban should serve as a reminder to every American that no one cares about your financial future and money more than you do; certainly not the government!
So next time you consider the value of gold and the stability it represents, remember this incredible historical moment. It’s a testament to the power of government action and the ever-changing nature of our financial system.
The Truth: Real money. Real wealth. Gold and Silver for over 3,000 years.
Read more Franklin D. Roosevelt's 1933 Gold Ban
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