Bank of America Corp (BAC), SPDR Gold Trust (GLD): Will Obama Really Confiscate Your Retirement Savings?

Moreover, historians point to the 1933 executive order that required individuals to deliver gold coins, bullion, and certificates to banks in exchange for regular currency at a rate of $20.67 per ounce as being functionally equivalent to confiscation. With the government proceeding to devalue the dollar to $35 per gold ounce the following year, those who complied with the order suffered a substantial loss of purchasing power. Indeed, many gold investors use that same argument in arguing against bullion ETFs SPDR Gold Trust (NYSEMKT:GLD) (ETF), iShares Silver Trust (NYSEMKT:SLV) (ETF), and iShares Gold Trust (NYSEMKT:IAU)(ETF), preferring instead to take physical possession of their gold and silver to ensure its safekeeping themselves.

Executive Order 6102. Source: Wikimedia Commons.

Jumping to conclusions
Even though the Obama budget lacks details on what exactly would happen with retirement accounts that hold assets above the $3 million limit, the most likely scenario is one in which existing accounts would be grandfathered, with restrictions applying only on future contributions. That by itself may be bad enough to alarm those striving to provide their own retirement in the face of a weakening Social Security and pension system, but at least for now, fears of outright confiscation are unwarranted.

The article Will Obama Really Confiscate Your Retirement Savings? originally appeared on Fool.com.

Fool contributor Dan Caplinger owns warrants on Wells Fargo and (NYSE:WFC) Bank of America. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Wells Fargo and owns shares of Bank of America and Wells Fargo.

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