Gold confiscations in the past: can the government seize gold?

Among precious metal investors, it is a recurring topic of conversation: the risk of gold confiscation. In a time of rising geopolitical tensions, sky-high government debts, and the rise of central bank digital currencies (CBDCs), many people wonder: "Is my gold safe from the government?"

To answer this question, we must look at the facts. In this article, we analyze the most famous gold confiscations of the past, explain why the situation is fundamentally different today, and discuss the legal situation in the Netherlands.

The question of whether the government can demand or seize gold lives primarily during times of economic uncertainty. Historically, there are examples where states have actually intervened in private gold ownership.

Historical gold confiscations: what happened in the past?

Although gold confiscation is often viewed today as theoretical or unlikely, there have indeed been moments in history when governments have restricted or mandatorily requisitioned the possession and buying of gold.

However, these interventions always took place under exceptional circumstances, such as severe economic crises, wars, or fundamental changes in the monetary system.

Below we discuss the most important historical examples and the context in which these measures came about.

United States (Executive Order 6102 in 1933): gold ban and mandatory surrender

The most cited example of gold confiscation is the situation in the United States during the Great Depression.

In April 1933, President Franklin D. Roosevelt signed Executive Order 6102. This emergency measure forbade private individuals from holding large quantities of monetary gold.

Citizens and companies were required to surrender their gold to the Federal Reserve at a fixed price of $20.67 per troy ounce.

What fell under the ban?

• Gold coins and gold bars above a limited amount
• Gold certificates

What was exempted?

• Jewelry
• Dental gold
• Collectible coins with numismatic value

The goal of this measure was not so much "taking away" gold, but breaking the gold standard. By removing gold from private circulation, the government gained more room to create money and combat deflation.

Shortly after the surrender requirement, the US government raised the gold price to $35 per ounce, which amounted to a significant purchasing power shift from citizens to the state.

Important to emphasize: this policy was directly linked to the fact that the dollar was then exchangeable for gold.

Europe in wartime: gold under duress and occupation

In Europe, gold confiscations mainly took place during the Second World War, but the nature of these confiscations differed substantially from the American example.

Germany (1933–1945)

Under the Nazi regime, gold, jewelry, and other valuable possessions were systematically seized, particularly from Jewish citizens. This did not concern an economic policy instrument, but a form of organized expropriation and persecution.

Occupied countries, including the Netherlands

In German-occupied countries, such as the Netherlands, Belgium, and France:

• gold was looted from central banks;
• private gold ownership was sometimes forcibly surrendered;
• trade in gold was strictly regulated.

These measures were the result of military occupation and not of democratically established legislation within a constitutional state.

Other historical examples

Restrictions on gold ownership have also occurred outside the US and Europe:

• Australia (1950s): temporary restrictions on gold trading and export.
• India (20th century): strictly regulated gold ownership to protect foreign exchange reserves.
• Soviet Union and Eastern Bloc countries: ban on private gold ownership within planned economies.

In almost all cases, this involved countries with:

• capital restrictions;
• currency problems;
• or authoritarian political systems.

How is the situation today? Can the government confiscate gold?

The short answer is: theoretically yes, but in the current economic reality, this is unlikely.

Although governments have extensive powers through emergency legislation in times of war or crisis, the monetary system today is completely different from that of the 1930s. Back then, gold confiscation was necessary for governments to be able to print money.

Today, our money is no longer backed by gold, removing the direct necessity for seizure. The risk for investors today lies more in stricter regulation, transaction restrictions, and higher taxes than in physical confiscation of gold.

Is gold ownership legal in the Netherlands?

Yes. In the Netherlands, it is fully legal to own, buy, and sell physical gold. Gold is legally classified as private property and falls under property rights as protected by:

• Article 14 of the Dutch Constitution;
• Article 1 of Protocol No. 1 to the European Convention on Human Rights (ECHR).

This means that the government must respect citizens' property rights and may only intervene in very exceptional cases.

Can the government confiscate gold via legislation or emergency laws?

In theory, the Dutch government has emergency powers that can be used in exceptional circumstances, such as war or a serious national crisis. However, this does not mean that gold can simply be taken away.

Strict conditions always apply to the requisitioning or expropriation of private gold holdings:

• there must be a compelling public interest;
• the measure must be based on clear legislation;
• there is a right to full and fair compensation;
• the measure must be proportional and temporary.

A general gold confiscation would be legally extremely complex and almost certainly lead to lengthy lawsuits, both nationally and at the European level.

Is there a special gold ban or gold register?

No. In the Netherlands there is:

• no gold ban;
• no central gold register;
• no reporting obligation for the possession of physical gold.

However, rules do apply regarding:

• money laundering prevention (Wwft);
• identification for purchases above certain amounts;
• restrictions on cash payments (for example, a ban on cash payments above 3000 euros).

These rules are aimed at transparency and fighting crime, not at controlling or limiting legal gold ownership.

Why a gold ban is less likely now

Is the fear of a repeat of gold confiscation justified? There are three fundamental reasons why the situation is different now than in 1933.

1. No more gold standard (fiat money)

Since 1971, no currency in the world has been linked to gold. We live in a system of 'fiat money'.

If the European Central Bank (ECB) or the Federal Reserve wants to stimulate the economy, they can create digital money ("print it") without needing a single extra gram of gold. The monetary necessity to take gold away from citizens no longer exists.

Buying gold is a safe investment. The Silver Mountain offers gold bars and gold coins of the highest quality.

2. The size of the market

Although the gold market seems large, the total value of all private gold is small in proportion to the global debt pile and derivatives market.

If a government wants to pay off debts by confiscating assets, pension funds and savings accounts are a much easier and more lucrative target ("financial repression").

3. Logistical nightmare

In 1933, gold was often kept in bank vaults, which made seizure easy. Today, millions of people keep small amounts of gold at home or in various locations worldwide.

Tracking down and physically collecting this gold would require an enormous police effort with limited return.

Nowadays it's very unlikely that a government will seize your gold assets.

The real risks: regulation, AML (Wwft) and CBDCs

The fact that physical confiscation (as in 1933) is unlikely does not mean that the government leaves gold owners completely alone. Today, the strategy of policymakers has shifted.

The government does not need to physically possess your gold to exercise control over it. The focus nowadays is no longer on ownership itself, but on transactions and flows of wealth.

1. The end of anonymous gold buying (AML & Reporting Obligation)

Under the guise of the fight against money laundering and terrorism financing, financial privacy has been drastically curtailed in recent years.

The Money Laundering and Terrorist Financing (Prevention) Act (Wwft) obliges precious metal dealers (such as The Silver Mountain) to act as 'gatekeepers'.

• Identification obligation: For transactions above certain threshold amounts, it is mandatory to record and verify the identity of the buyer.
• Cash restrictions: Buying gold anonymously with cash has been restricted throughout Europe. In the Netherlands, there is a limit on anonymous cash payments.
• Reporting unusual transactions: Dealers are obliged to report transactions that deviate from the normal pattern (regardless of the amount) to the Financial Intelligence Unit (FIU).

The goal of this legislation is clear: the government wants to know exactly who holds how much wealth outside the banking system.

2. The Digital Euro (CBDC)

One of the major themes is the introduction of Central Bank Digital Currencies (CBDCs), such as the Digital Euro. Unlike cash or physical gold, a CBDC is programmable money issued directly by the central bank.

• The 'closed circuit': A CBDC makes it possible to track every transaction in real-time. If cash is phased out in favor of the digital euro, fleeing to physical gold becomes more difficult.
• Blocking gateways: The risk is not that the government takes your gold, but that buying gold with CBDCs is restricted ("rationing") or that you encounter difficulties getting the value back into the digital system upon sale without extensive accountability.

3. 'Soft Confiscation' via taxation

If the government cannot or does not want to seize gold, the easiest way to profit from it is through taxes. This is also known as "soft confiscation".

• Increase in Box 3: In the Netherlands, gold falls under assets in Box 3. The government can increase the fictitious returns on other assets, causing you to pay more tax annually on your gold reserves, regardless of whether the price rises or falls.

Myths vs. Facts about Gold Confiscation

Many assumptions exist surrounding gold ownership, often fueled by historical examples, online speculation, or social media. The myths and facts below help separate fact from emotion.

Conclusion: new gold confiscations unlikely

Historical gold confiscations show that governments can take drastic measures in exceptional times, but always within a specific economic and legal context. Those circumstances are fundamentally different today. In the Netherlands, gold ownership is legal and strongly protected by laws and regulations.

The chance that the government will seize gold on a large scale is therefore very small. For many investors, physical gold remains primarily a means of asset diversification and protection, not an asset that runs a real risk of being taken away.