Europe to Confiscate Gold?

QUESTION: Marty, the gold buyback quote at ….. is now spot + $20. A week ago the quote was spot + $2. Supply & demand? Shortage of 1 oz random year golden eagles? What’s going on?

Thanks for your prolific post output during this crisis!
Cheers, TGM

ANSWER:  Europe has directed bullion dealers not to sell to individuals. You will probably see next week a proposal floated that asks Europeans to turn in their gold and convert it to digital under the claim this is patriotic. There are growing fears in Europe that they will cancel the paper currency and force everyone to go digital.  This is why there have been runs on banks in the USA for cash dollars in New York, not for fear that the bank will fail, but a panic to get out of Euros.

There is a rumor that is spreading that Europe will confiscate gold as Roosevelt did, but not to back the currency with gold, but to force all wealth into a digital currency. This would be a game-changer in Europe. I do not see this unfolding outside of the Eurozone. Keep in mind that Europeans are very familiar with canceling currencies. It is ONLY the paper currency which is canceled – not the Euro itself. That is routine in Europe to force people who have the cash to declare it and pay taxes or lose everything. They cannot cancel US dollars, but they have been imposing stricter regulations on gold for the past two years. As I have said, never let a good crisis go to waste.