- " . . 

(BY THE U.S. GOV'T FOR ONLY $42.22/0Z.) 

8o 1iJ~t J (~\ (~) ~KR~UG~ER,-"-,-,,R.!...O.!...AN=-=-D _--,M~A~PL,,-,=,-E ==LE~AF_ ~OT:...:..:..;H E=R~Bl~l LL,,-,---,=IO,-,-,-N -------'f~\M~ER~I C~AN~' EA~G~LE,---..!....!CPH~I L~HA~R!\~IO~N I ( 

The '?egal JJprice of gold is a 

blatant warning that the government 

may want your gold again! _~ The present US go\rernment's legal price of 

gold is $42.22 per troy ounce. For t110se vvho don't 

believe that's applicable today, t111nk: again. It was 

confirnled by t11e Sllpreme Court Just a generation ago. * 

Tl1e decision involved the Fra111<lin Mint, whose 

shipment of Krllgerral1ds was lost by TWA. TWA's 

insurance carrier insisted that the gol{/ coins were 

worth only $42.22/oz. becallse that was the last official 

price of gold set by the government. Obviously, the 

_ Franl<lin Mint wanted to be compensated at the actual 

market value of gold-which is what they paid for it. 

But the Sllpreme Court ruled that gold btillion- values 

,=---- -

in commerce are limited to $42.22 an ounce. 

(Oyer please) 

Case 3:10-cv-00323-RS-EMT Document 1-2 Filed 08/30/10 Page 1 of 16
That means all future confiscated gold COllld be 

"compensated" at only $42.22 [in fiat paper 

greenbacks] and you won't be able to do a11ything abollt 

it. The constitutional' requirement of compensation~-­

after "due process of law" would be satisfied. 

That "legal" price of gold also means something 

else. It is another blatant warning that the government 

lnay be contemplating grand larceny-again. In the 

next "emergency," the real or market price of gold 

might easily rise to $2000/oz. or more. T11at leaves an 

in1mense spread from the $42 legal price for the raiders 

to exploit-and a huge temptation to strik~e. It wou1d 

yield a "profit" of at least $250/oz. at today's prices, 

[and perhaps thollsands of dollars/oz. in a crisis] for 

every ounce the govetTIlnent ca11 seize out of safe--

deposit boxes and other private holdings. Expect the 

worst, and prepare for it now .. 

H.L. Mencl<en said: "Government ... ren1ains the 

common enemy of all well-disposed, industrious and 

decent men. Its permanent preoccllpation is extracting 

as much wealth as it can from the public, as easily as 

possible, by fair means, or more usually, foul 

(If you own gold or silver bullion~ YOU'VE GOT A PROBLElVl! The solution is as simple 

as a call to us at 1·800·947·COIN (2646);,.' 

*Trans World Airlines, Inc. Vs. Franklin Mini Corporation, et al. 466 US 243, 80L Ed 2d 273,104 S Ct. 

1776 [Nos. 82-1186 and 82-1465] Argued November 30,1983. Decided April 17, 1984. 

Case 3:10-cv-00323-RS-EMT Document 1-2 Filed 08/30/10 Page 2 of 16


,,,--.... .. 

FEB··2-2009 03: 50P FROI'1: IRe 612-330-9049 TO: 18506233463 . P.6 

...... ~.f;):1.dt\)d ~9.~4~·~?!L\".er.!i\ ot~u1B.tinif "old coiruc 68 /l gtrong part of our monetary system. Dttrll1sthe 

:rem.afnder of 1933 the Presicient IU1d the Treasury ws'ued additioxial regula.tio!IB and·cllU"ifiea.tkiQBI' on go1d~' 

S1.i'.1".r'e%1der. One es:emptiol1 'WlUIlluthorized. which permitted the holding of ,old undu special license for WlfJ 

in industry, certain. profesfli!oMp and RARE AND UNUSUAL COINS OF VALUE TO COLLECTORS. 

The price ot gold had beG%! IU"bittarily set at $20.67 a fine ounee fol' 96 yelU'fl. The difierenc~ betwetn the lWmmm vnlUG of thE) gold dollar and the actual gold content hy weight 'flu d.Ue to th& orlgiul oIetporaget 

21'anted. the Treasury oylllw in 1887, Uncle!' thia, the statutory troy ounel!! of bulllon worth$2().67 was 

ew.c!uwged. for $20.00 in ct>m. The differeDce wu allowed to orrad; minting cod,.;. 

Oitizena who .IIUl"rel'lde;-ed theix> gold were paid $20.67 per ounce in Federal Reserve Notes and silver CQins. 

At the time of the 8u.r.rendarj theJ S'QvernmEiui gold stockpile stood at about 200 lniUion. ounces, 01' $4 billion 

at $20.67 pel" oun!,W. 

ROOSEVELT DEVALUE§! THE DOLLAR BY 59% 

In Jun~, 1988; Co~a paued a jomt resolution abrr.gatWi ao1!i clAusel!J in all eontract4 ,Pl!.lt and fUf.V.:re. 

Thia meet that: !ill cOl1tractual QbllgatioM must be met itt unita of ctU"l'etI.t curreney V&t.\O+ Jwst liz mo~ths , 

. Ude~!l)D January lG~ 19134, the Gold ",erve Act WM PUlSed. aut&.o~ all mQi:c0~ gcld tb he o'i'N.l.sci 

by the ~ent u a ImllioD bus to'e itA c1.2ftlmf!Y. Angola in th.eFedmtl Re.lervs wu tra.nd'~ to 

tM THuUl'Y rn u:~ to!' non-drculatina BOld certi.ficateJ l6eued to Federal RMerv~ BaW. 'l"hte Gold 

Rawtn"\le Act kicked of! a ~I of events that Ihocbcl conaofentioUIII lnl)l5.etuy ·th!nka~ and chl!t1'l.pd the face 

of the eulyiINew Dellull nom wonde .... m IIlUSP[ctoft. 

~ new law g&~ RooMmt ptlwer to devalue tha dolluo .in I!I.Ij. amount he deemed a'pp!'Opm~ but ru;t ~ 

~ 00 p~ .He j~ped onlt fmm.edlatelyand devalued the doUu 59 p~t-·&om $20.67 p~ fine 

()UllC8 ollDhi to $85. ·At the aa.me t:Unoj he fomWl" proh.ibited the mmtma of all SOld. ~ and dam(Jne~.ed 

tb.oM out..tt.tmd.fq. ~ devaluation netted the governm.en.t a $a hnlltm proiiC and rwed. thii wIlli) ot it&! ~ i pld holdings to $'1 b!lllbn. F:atn the mo!lUllt of th& devalttatior., t.l:ia United. St&t..u began to aecumu1aw 

~ ~"!!"!.. fi>= .. I!o#,ocolo. B:r 1940 .... pld '!:'etW h!!l' fDore .. ed to $I} b!lll1m. - .-.{Ii 

~ NIDi came the cotlfiloatiQD. of .Uv$):". Or.t AUf'!.l8t 9, 1984, a Pcetfdential P.rocllWlaticn ordered. aU tS~~ .• 

r buWon ~ to thl!t1Nuury witl:t..f.n 90 day,,·eM a SO percent w wu lmed on f.U\y profiUi from tho 'l~ 

• d.of d1~. The order nett.ed us mIlHOll OU1lCeill tor whlch the holden Wel'Il!I p!.id 50.1 cents pelf ounea. w,,' . '1IfbtL.,.. _____ _ __ _ _ ...... iilIIW' .. ...~ • 

MM peopie do:rrt N~ that THE OOV.ERNMENT STiLL HAS TEE POWER 1:'0 SEIZE GOLD. 

AecOMmlf to .Ron Paul, a fOl'IDel" Reprea:entative from the State of Texul .. 

"When tM freedom to own gold WiUJ l'flI!tored i'Cl.197S, a litt.lti known provision of the Federal. 

Helene Act WIllS overlooked: 12 U.S.O. 24B{n). Thialaub.'J&etion outlines EiJl authority which in 

effad: would negate the freedom ~mt.ed in 1975 that allowed U.s. citizens to once again own gold. 

The law 5tate.: 

IIWhensvert in the Judgment of ~ Seeretlll:Y of the TnuUl'Y, su<.'!h action is nece.!.HiUY to 

pl'Ot.ect the CtU.'r6ncy system of the Uaited Sf:a.W9J the Secretsl"y4·at his d.iacretion, may require any 

or all individuaL!!-to pay and deliver to the T.reruru:rer 01 the United State$ MY or a.ll gold coins, .. gold bullion, and gold cerlifieatBs owned by sucldlldividu~.' . __ . _. ____ ; ___ ... _0 •.•• - ••• '. <

1m other wordst we have on the bOoks the power of the government to gbrogat8 the free&om 

of individuw to hold. 1.\ specific COllU:tlodity, in this ease gold. r 

In. a ~ent interview with Dan RosenthlllJ in Sllve:tt and Gold Reports Mr. Paul said: 

~Ii it gets bad enough, they'll declare a national eeollomlo emergency. They'll take Oval' the 

b!ilJlbJ all bUSlnes5 Imd iruitl.!lb:y. They may 8~en b.-y to cont'heats our gold. 

. "I Ge.l"Ved.on th.e Gold. Commjuioll for eiiht or n1ns mont.lu while I WIlS in Congress along with. 

fiftam other m!m.bers. I brought up the subject ()f col:l.fiacation. The power to conr..ttMte gold itt 

"--""l still !l-n the booh as tn.e law of the land; I W'ged the f'ull Con:u:nission to reeom.mend CO%lgl"$ss 

:repeal ~ pawe:r to confiscate gold in an econ(lnUu emerg-eney •. 
I 

I 

I 

FEB·2··2l2{~:r::;1 03: 52P FROM: IRe 612-330-5'049 10:18506233463 F.8 

Il\JTERNATIONAL RARITIES CORPORATION 

UGOLD CONFISCA TION"* 

On AprilS, 1933, acting {mder authOlity of the newly c:reated Emergency Banking Act, President 

Roosevelt iss-aed Executive Order #6102 which required the surrender of all gold holdings. 

Because the EXeC\ltive Order specificaUy stated "all gold coin'" it might have been possible to 

confiscate all nillI'Jsmatic gold despite its value. if the order stopped there. However, the order 

exempted "gold coins having recognized special value to collectors or rare and lUlusual coins". 

Wording in the above statement becoml;:s an important element. Exempted from the surnmder 

requirement were not the "o\vners" of rare gold coins. or "holders" of them, nor persons who 

"possessed" sucb c()inst nor even "jnvestors"; on. the contrary, the order specifically focused on 

all individuals motives for having rare gold coins, exenlptingjust one classification: "collectors". 

There is a clear distinction between "collectors" and "investorstl in rare coins. 

A collector's primary interest in rare coins is enjoyment. It's for historical, aesthetic or cultural 

reasons. An investor's tnterest ill rare coins is tlnancial- to make a profit. Roosevelt clearly 

intended to exclude only the collector. 

Subsequent Treasliry li.~gis]atioll added to the original Executive Order, the amendment stating; 

"gold coin made prior to 1934 is considered to be of recognized special value to collectors of 

rare and unusual coins." 

The Eminent Domain Clause ofthe Fifth Amendment of the U.S. Constitution stand between the 

rare coin collector a..l1d government confiscation. Part of the Eminent Domain Clause states: 

", .. l1or shall privat~J property be taken (by the government) for public use; without just 

compensation." :. 

Bullion was easy to confiscate at the official price in 1933. Payment was made at the "official" 

gold price of $20,67/ounce. ~'hat would have been 71 "fair price" fDr rare gold coins? This 

t:.Teated tremendol'tS difficulties. Coins would have to be judged on a per-coin basis which was 

simply impractical. Fully realizing this, Roosevelt deliberately excluded these gold coins for his 

Executive Order. 

In a future confiscat.ion the Government could simply use world gold prices (spot prices) at the 

time the regulation went into effect. Rare gold coins \''-'Quid once again present unmanageable 

difficulties presented by Lhe Eminent Domain Clause, 

If you wish to own gold it wOi.ud be wise to purchase it in the form of Pre~ 1936 American gold 

coins, with a variety of dates, denominations a.'1d mint marks, thereby possessing gold in a fonn 

that virtually guarantees exclusion from future gold confiscation. 

'Eyeerpted from "Heads You WIn, TaUs 'Iau Win"l>y Jeffrey J. Prltcb~rit 

331 - 2nd Avenue South • Suite 410 • Mirm.eapolis, MN 55401 

l.:>ll Free; (800) 947-2646 • Local (612) 330..0062 • Pal: (612) 330·9049 
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