What is the History
of Gold and Silver use?
Man has an innate desire to obtain and own gold and silver. People are investing in gold
and holding gold as a valuable asset.
This esteem for gold and silver seems as deep as any of our most basic
drives. Throughout history this awareness of the value of gold has
caused civilizations and cultures to maintain the gold standard. Unfortunately,
Kings, Ruler, and Politicians, on numerous occasions, have abandoned the
gold standard and either forced or tricked it's citizens into an artificial
monetary system. Their systems have never lasted because Eternal laws are
There has never been in the history of the world, a single nation, that
left the gold standard, that did not end up with an economic collapse.
The U. S. A. is currently breaking a record for the longest period of time
that a nation has endured after breaking the Gold Standard. Our system
will crash, it's just a matter of "when".
In 1792 the U. S. Coinage Act was passed by Congress.
the death penalty for anyone debasing money and provided for a
U.S. Mint where silver dollars were coined along with gold coins beginning
in 1794. A dollar was defined as a specific weight of gold or silver
coined under the direction of our elected representatives, (Congress).
Altogether, nearly 900,000,000 silver dollars were coined from that time
until 1935. An interesting note is that free gold or silver minting privileges
were given to all citizens until 1873. This was pretty popular with the
gold and silver miners of that era. In 1913 the Federal Reserve replaced
the national bank system, and Federal Reserve notes were issued with a
promise to redeem them in gold on demand. On April 5th, 1933, one month
after his inauguration, President Franklin D. Roosevelt declared a national
"emergency" and "unconstitutionally" ordered all gold coins, gold bullion,
and gold certificates to be turned into the Federal Reserve banks by May
1st under the threat of imprisonment and fines, technically, a national
confiscation of gold and silver. Only those individuals who
had special gold collections or needed gold for industrial or professional
purposes were allowed to retain or buy gold in any quantities. On May 22nd,
1933, Congress enacted a law declaring all coin and currencies then in
circulation to be legal tender, dollar for dollar, as if they were gold.
The President was empowered to reduce the gold content to the dollar up
to 50 percent.
On June 5th, 1933, Congress
stabbed the Gold Standard out of existence by enacting a joint resolution
(48 Stat. 112), that all gold clauses in contracts were outlawed and
no one could legally demand gold in payment
for any obligation due to him.
On January 30th, 1934, the Gold Reserve Act was passed, giving the Federal
Reserve title to all the gold which had been collected. This act also changed
the value/price of gold from $20.67 per ounce to $35 per ounce, which meant
that all of the silver certificates the people had recently received for
their gold now were worth 40 percent less.
On January 31st, 1934, after President Roosevelt fixed the dollar at 15
and 5/21 grains standard to gold. Russia and the central banks of Europe
were very excited and began buying up gold in huge quantities. Thus a dual
monetary system began which offered the gold standard for foreigners and
Federal Reserve notes for Americans.
Between 1934 to 1963 all Federal Reserve notes issued had a promised to
pay, or to be redeemed in "lawful money." Over a short period of
time the wording on the Federal Reserve notes began to change until there
was no redemption in silver promised. This was done slowly enough that
the people didn't see it coming.
On November 2nd, 1963, new Federal Reserve notes with no promise to pay
in "lawful money" was released. No guarantees, no value.
In 1965 silver in coins were reduced to 40 percent by President Lyndon
Johnson's authorization. (see death penalty above)
President Lyndon Johnson issued a proclamation on June 24, 1968, that all
Federal Reserve Silver Certificates were merely fiat
tender and could not be redeemed in silver.
On December 31, 1970, President Richard Nixon authorized the treasury to
totally debase coins to a worthless value in non precious metal. (see
death penalty above)
Governments such as Switzerland and England announce gold sales. When the
U.S. Treasury and IMF (International Monetary Fund) sold gold in the mid-1970s,
it precipitated an 850% rise in gold over the next 3-1/2 years.
States are beginning to legalize gold and silver coins as currency. Utah
became the first state in the country in May, 2011, to legalize gold and silver
coins as currency. The law also exempts the sale of the coins from state
capital gains taxes. Minnesota, Idaho, North Carolina and at least nine
other states also have similar bills, or have passed bills (since May, 2011),
with a similar gold/silver tender.
Paul Volker "stepped down" in August of 1987.
Two months later the stock market collapsed. What did he know?
I would recommend reading; "The Making
of America" which you can get on Amazon.
book by W. Cleon Skousen, gives an excellent education on money
and the Constitution.
Keep the BALANCE in your
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