News & Analysis
Gold and Silver Registration in Illinois
A bill to register gold and silver coins: It had to come. It has been introduced in Illinois, the most anti-gun state in the USA. ... Creates the Precious Metal Purchasing Act. Provides that a person who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller. Provides that a person who is in the business of purchasing precious metal shall not pay for the precious metal in cash and shall record the method of payment. Requires the purchaser to keep a record of the sale for one year or, if the purchase amount is over $500, for 5 years. Provides that a person who violates the Act is guilty of a petty offense and subject to a fine not exceeding $500. Provides that the Attorney General may inspect records, investigate an alleged violation, and take action to collect civil penalties. − TeaPartyEconomist.com
Dominant Social Theme: This is to keep everyone safe.
Free-Market Analysis: Thanks to economist Gary North for this one. The bill, Illinois SB3341, passed the state senate in the spring and was handed off to the house this fall. With three amendments introduced in the house, it now sits in committee (see ilga.gov for progress). But we're not ready to announce from our perspective that this is the rollout of an elite dominant social theme.
That's because we haven't seen enough of a run-up. The power elite we analyze seem to promote themes with significant intensity. This news is not being marshaled at a high level among many mainstream publications, from what we can tell.
But that won't make it a meme, in our view. You see, there is no fear-based justification. Ideally, such a significant move would only come after due provocation. Notice a renewed push for gun control is being launched after two terrible shootings in particular that received extensive nationwide media attention.
This is how power elite promotions work. The provocation is widely disseminated and the result flows naturally out of the issue at hand. Whether the issue at hand is merely an unfortunate incident or something else is an argument for another day. In this case, the provocations seem strangely lacking.
In fact, we mention a dominant social theme above but it is not one that has been brought to bear.
As it has not, we provided a rationale that might work. The purchase of gold and silver has to be tied to some national security issue. That's how things seem to work currently.
But we're not aware that such a justification has been offered regarding this state bill. That rationale surely would involve "terrorists" using gold and silver to pursue various nefarious acts.
Finally, a move of such significance would likely be pursued at the federal level were the powers-that-be serious. We're not even sure that the power elite really cares about gold and silver registration currently. There are plenty of problems with monopoly fiat money but the system is not currently in danger of immediate toppling, it seems to us. Check back in a few months, or even a year or two ...
Of course, such a bill would make actual metals confiscation feasible, as authorities would have names, addresses and amounts of gold and silver held by private citizens. However, even during the initial confiscation in the United States under President Franklin Delano Roosevelt, hardly anyone was prosecuted regarding gold ownership.
The impact lay in the novelty of the act itself. In this case, we would think the intimidation factor would be a significant reason for such legislation. But again, we would expect such a bill to be pursued at the federal level for maximum impact.
It is true that the powers-that-be likely despise gold ownership (for anyone but themselves) but we're of the opinion it might take an overwhelming monetary crisis to move along legislation like this on a national or international level.
That doesn't mean something like this couldn't take place. We've predicted it in the past. We just don't think this effort is being seriously made yet. On the other hand, it could be a kind of "trial balloon."
Conclusion: One to watch.
Posted by budwood on 03/07/13 01:57 PM
I have done business with the Gold Dealer in the Los Angeles area. When I sold small amount of silver, I asked if they were going to give me a 1099 form. I was told that (a.) the amount was insignificant and (b.) gold and silver transactions are not reportable.
Too bad; I lost a few dollars which I could have deducted. If I lived in Illinois, perhaps I'll be able to document such losses.
Posted by MajorTom on 02/12/13 05:35 PM
Illinois SB3341 adjourned session sine die, meaning no future date set, presumably for a reintroduction during the new state general assembly. Let's hope it stays in the rabbit's hole.
Posted by WorkingClass on 01/10/13 11:04 AM
"Of course, such a bill would make actual metals confiscation feasible, as authorities would have names, addresses and amounts of gold and silver held by private citizens."
Bingo! It's not a meme. It's merely a method for increasing the reach and the grip of the police state. Lets see how it works in Illinois before we impose it on the country.
If you intend to resist confiscation of your metal (your money) you should NEVER enter into a reportable transaction.
Posted by Wrusssr on 01/10/13 02:06 AM
The administration already tried once for national legislation that was similar to what Illinois is trying to do. Washington's legislation would have required any individual purchase over $600 be documented into a national data base.
Didn't fly. Seems the great unwashed had gold and silver dealers among their ranks who saw through the scheme before it hit daylight; knew the odds of it being a forerunner for confiscation; spoke unto their Washington brethren like a brother.
Currently, you can buy $9,999 worth of either on a daily basis and the transaction remains local. You can buy more than that if you like, but your total would go into the data base for that day.
The $10,000 (+) was set up to ". . .catch drug dealers and money launderers."
The point being if the administration's $600 limit legislation had passed, Washington's and Wall Street's financial criminals would have known exactly where to come to confiscate the metals this time around with a "law" making it illegal to own either.
Roosevelt's gold grab fell short of their expectations. The rest stayed buried in coffee cans and sewn into mattresses, so to speak.
Given Illinois' political track record, look askance at this attempt.
Posted by taxesbyanyothername on 01/10/13 12:42 AM
This is the desperation of the state of Illinois for money. But it also sets a bad precedent, and at the federal level is almost as bad as the gun grab. The contrived incidents to push gun control are becoming more obvious, and are coming faster and more furious. The contrived reasons for them to confiscate gold can not be far behind. Perhaps it will be floated that "terrorists" are using precious metals, and or cash to hide their transactions. Government issued payment cards, or chips in everyone's hand. It would certainly force the issue. You are either of the system, by the system, for the system, or you are the enemy.
Posted by rainmaker on 01/10/13 12:03 AM
Just because there is no "run-up" or spectacular event does not mean this is not part of a dominant social theme. In my humble opinion, thats obtuse. While we are all fiddling away at the 2nd amendment debate (and all the rest of the crappola in the public domain), this is a perfect time to begin to enact draconian policies that will affect history's only true forms of money.
Posted by inibo on 01/09/13 08:39 PM
"as authorities would have names, addresses and amounts of gold and silver held by private citizens."
I didn't read it that way. It seems to me this is aimed at the "We Buy Gold" folks. It says "that a person who is in the business of purchasing precious metal shall obtain a proof of ownership... "
To me, this is an attempt to find a way to tax the sale and prevent people from turning gold/silver into cash under the radar.
I could be wrong, though. I have been before.
Posted by jconn22 on 01/09/13 07:23 PM
G. Edward Griffin has alerted his followers to get out of the stock market and conventional money based investments ASAP and put all investments in Gold and Silver b/c in his view, the crash of fiat money is immeninent... seems radical to me, what does DAILY BELL think, given Mr. Griffin's appearance here? Thanks.
Reply from The Daily Bell
What is there to say? Anyone can understand the business cycle. Almost no one can "time it."
Posted by fabien on 01/09/13 05:47 PM
Other leftist states are going to do the same. They'll lose business to states like Utah that will rush to attract it. They'll go complain in DC that's unfair competition. DC is going to write a Federal law to solve the problem. The drain's sucking sound is getting louder.
Posted by Don'tTreadOnMe on 01/09/13 05:06 PM
This is a transparent tax grab. Illinois wants to be able to track and tax sellers of gold on their so-called "capital gains". However, it is a fact of economics that gold does not increase in value; rather, the dollar decreases in purchasing power. So a tax on your "gain" on the exchange of gold for dollars is really a tax on the amount by which the dollar has lost purchasing power, i.e. double taxation. The State of Utah understands this and does NOT charge capital gains tax on sales of gold and silver coins. At least eleven other states are thinking of following Utah's lead, which is as it should be. Gold and silver are the only "real" money. It is offensive to be charged a tax because the Federal Reserve's unrestrained printing of money out of thin air has caused a dilution in the purchasing power of the dollar and has thus caused the price of gold and silver coins, when denominated in dollars (or any other fiat currency, for that matter) to go up, but that is clearly what Illinois wants to be able to do.
Posted by bionic mosquito on 01/09/13 02:26 PM
I guess this would make the Lone Ranger another run-of-the-mill criminal. Or the perfect false-flag operator.
Posted by Ol' Grey Ghost on 01/09/13 02:23 PM
Darn! And just as I was getting my post-collapse business together, too.
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One does have to wonder what they are up to, even if just for entertainment purposes...
Posted by Ralyn on 01/09/13 02:12 PM
I live in IL and just learned about it yesterday.
"the most anti-gun state in the USA" Alright - the entire state is NOT Chicago, they are the ones that push for unconstitutional gun grabbing. Most of our counties just passed a Constitutional Carry ordinance in overwhelming numbers for each county that had it on our ballot. From my understanding Conneticut is way more anti-gun than we are. Again - at the moment it's only Chicago that has the gun bans, not the rest of we like our guns.
Posted by Abu Aardvark on 01/09/13 01:23 PM
Speaking of Gary North ... here's another recent firecracker:
"Social Security, Ponzi Schemes, and Leprechaun Economics"
Click to view link