Can the government take my gold and silver?

Confiscation and nationalization of precious metals: what is the difference and how real is the risk? 

The potential interference of governments in the possession of gold and silver raises questions for many investors. Terms such as confiscation and nationalization are regularly mentioned in this context, but are often confused. In this article we explain what these terms mean exactly, under what circumstances such measures have been taken in the past, and to what extent this is still a realistic scenario today. 

Confiscation vs. nationalization: the distinction 

First of all, it is important to make a clear distinction between confiscation and nationalization: 

• Confiscation means that the government seizes the possessions of private individuals without compensation. This is also legally referred to as “special confiscation” or “withdrawal from circulation”. 
• Nationalization, on the other hand, involves the government requisitioning possessions, usually in return for a (often government-determined) financial compensation. 

When it comes to precious metals such as gold or silver, confiscation is seen as a last resort, usually only used when there is a serious crisis of confidence in the financial system.

Legal framework in the Netherlands 

According to Article 26 of the Emergency Act on Financial Transactions (in force since 25 May 1978), the Minister of Finance has the authority to seize, under exceptional circumstances, gold coins, fine gold, unprocessed gold or semi-finished products, provided that they are in the possession of residents of the Netherlands. 

Although this legal possibility exists, it is an emergency measure that would only be activated in very exceptional cases. To date, it has never been used in the Netherlands. 

Practical feasibility 

Although confiscation is theoretically possible, its implementation is complex in practice. There is no central register of private gold ownership, and gold comes in many forms — from investment coins to jewellery. Moreover, such a measure would probably meet with resistance from society. 

Confiscating bank savings, on the other hand, is much simpler. An example of this is the situation in Cyprus in 2013, where approximately €10 billion in savings were withheld by means of a one-off tax, as part of a European rescue operation.

Historical examples of confiscation and nationalization

United States (1933–1934) 

On April 5, 1933, President Franklin D. Roosevelt signed Executive Order 6102, which required Americans to surrender their gold holdings for a fixed fee of $20.67 per troy ounce. Failure to comply could result in heavy fines or imprisonment. 

Shortly thereafter, in 1934, silver was nationalized with the same goal: to increase monetary inflation and create more financial leeway for the government. 

Cyprus (2013) 

In the aftermath of the banking crisis in Cyprus, the government, supported by the EU, decided to impose a one-off levy on savings. This effectively confiscated part of the bank accounts of citizens, worth approximately €10 billion. 

Netherlands: expropriation of agricultural land 

Although there is no precedent in the Netherlands for the confiscation of precious metals, other forms of ownership restriction do exist. A recent example is the expropriation of agricultural land in the context of nature development. In 2023, dairy farmer Gert Hogendoorn was forced by the court to give up his land to the municipality of Krimpenerwaard for the development of a nature reserve — against his will.

How realistic is confiscation of precious metals today? 

The chance that the Dutch government will proceed to confiscation or nationalization of gold or silver is considered small in practice. The threshold for such an intervention is high and the practical feasibility limited. 

Nevertheless, it is not inconceivable that governments will take drastic measures in extreme economic circumstances. Historically, gold has been the target of such interventions more often than silver, partly because gold has been the linchpin of the monetary system (the gold standard) for a long time. 

For this reason, some investors consider silver to be a relatively 'safer' precious metal in the event of large-scale monetary restructuring. 

Buying gold or silver for the first time? We are happy to help you.