Can the bank confiscate precious metals in a safety deposit box?
I’m told many times to not put any precious metals in a safety deposit box because the bank could take it. How can that be if the bankers don’t even know what’s in the box?. That doesn’t make any sense.
Can anyone explain to be what is bank day? Is it when some crisis happens and banks will close.
November 10th, 2010 at 6:11 am
No they CAN NOT. I don’t know who’s telling you that. I have my (gold) Krugerrands & Morgan silver dollars in my safe deposit box.
Sounds like you are talking about a bank holiday. This was after the crash of 1929, and after the run on the banks. The banks were closed, and then reorganized & provided FDIC protection.
If you do a google search, you can find plenty of articles on bank holiday’s.
November 10th, 2010 at 7:05 am
What you are referring to is two separate situations that have occurred in the past. Lets start with the first. In 1933 when FDR called a bank holiday it was to prevent those who had money on deposit from being able to withdraw it out of the banks. FDR in his First Fireside Chat to the nation explained the simple fact that when you put your money in the bank, the bank doesn’t keep it in the bank vault. Instead it lends it out. In other words the bank puts your money to work (not for you but for the bank). He went on to say that basically you have no right to your money and that you are only allowed to have access to your deposits for legitimate purposes which the government and the banks can define in any way they see fit. Read and listen to the first Fireside Chat here and understand it. http://www.americanrhetoric.com/speeches/fdrfirstfiresidechat.html About a month after the reopening of the banks in 1933, FDR then confiscated every-ones gold and it was then transported to Fort Knox several years later. After the gold confiscation in 1933 the price of gold was revalued to $35 and ounce from $20.67 an ounce. This had the effect of stealing 41% of the real value of the savings of every American. Gold was outlawed at this time and remained against the law to own untill 1975. The US went off the gold standard and delinked from gold in 1971. This was called the Nixon Shock. Today the US congress is proposing stealing all retirement savings because that is where the saving of the American people are this time around, and they held hearings into this proposal in October 2008.
Moving onto the safe deposit box issue it is true that government and the banks have been stealing from peoples safe deposit boxes. This is being done to fund budget shortfalls in State governments. ABC news ran a piece on this scam by the banks and the State governments in early 2009. Here is the link to the story. http://www.youtube.com/watch?v=ZdHLIq0qHhU
The current generations alive today are going to learn the hard way the lessons that those who lived during the Great Depression learned. That lesson is very simple. You can not trust Banks or the Government. They will steal everything they can when the survival of the banks, the government and the “Pin Striped Bandits” on Wall Street are at risk.
I personally only use banks for clearing of checks, deposits and paying bills. I do not save money in banks. I have a large gun safe at home and keep gold, silver and physical US and Canadian currency in it. I do this because I understand history and what is coming in the future.