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What is the Federal Reserve?

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The Federal Reserve is part public entity and part private entity that has operated as the central banking system of the United States since the Federal Reserve Act of 1913.

The Federal Reserve System, often referred to simply as the Fed has a unique public-private structure that controls the nation’s monetary policy by managing interest rates and regulating the money supply to achieve goals like maximum employment, stable prices, and moderate long-term interest rates.

The first, the Board of Governors, based in Washington, DC, is a government agency with various accountabilities to the President and Congress.

The six member Board of Governors plays a crucial role in setting national monetary policy by controlling interest rates.

The second component of the Fed is the 12 regional banks located in major cities across the United States. These banks are responsible for supervising and regulating regional member banks, implementing the monetary policy set by the FOMC, and provide financial services to depository institutions and the federal government.

The third component is the Federal Open Market Committee (FOMC) which plays a critical role on monetary policy, primarily interest rates. The committee includes the Board of Governors and the presidents of the regional Federal Reserve Banks.

Who owns the Federal Reserve?

The Board of Governors of the Federal Reserve System is a federal agency. The members, including the Chair, are appointed by the President of the United States and confirmed by the Senate. This aspect of the Fed is fully public and operates under the purview of the federal government.

However, the regional banks are organized much like private corporations. Member banks in each region own stock in their regional Fed Bank. For example, the St Louis Fed is owned by each of the member banks that it is responsible for overseeing. Each bank holds stock in the St. Louis Reserve Bank.

The member banks that hold stock in the St. Louis Fed do receive a fixed 6% dividend annually, but they do not have the same control and financial benefits that shareholders in private corporations possess. They cannot sell or trade their stock, and they do not have voting rights to control the bank’s policies or operations. Owning this stock is more like being a member of an organization rather than owning a company in the traditional sense.

Any profits that may be generated by each of the Fed Reserve Banks, after operational costs and dividends to member banks, are returned to the U.S. Treasury, aligning with the public aspect of the Federal Reserve System.

Origins of the Federal Reserve

Prior to the creation of the Fed, the U.S. had gone through long periods without a central bank. During the late 19th and early 20th centuries the banking system was fragmented and prone to crises, including the notable of Panic of 1907.

In November 1910, a group of wealthy bankers, along with several notable politicians, met in secret on Jekyll Island, off the coast of Georgia. While shrouded in mystery, this secret meeting has been considered pivotal to the creation of the Federal Reserve.

Some of the prominent figures in attendance at this secret conference included:

  1. Senator Nelson W. Aldrich: As the Senate Finance Committee Chairman, he was a key figure in U.S. financial circles.
  2. Henry P. Davison: A senior partner at J.P. Morgan & Company.
  3. Charles D. Norton: President of the First National Bank of New York.
  4. Benjamin Strong: Head of J.P. Morgan’s Bankers Trust Company and later the first Governor of the New York Fed.
  5. Frank A. Vanderlip: President of the National City Bank of New York.
  6. Paul M. Warburg: A partner in Kuhn, Loeb & Company and a member of a prominent banking family.

The purpose of the meeting was to discuss and formulate a plan and a strategy for a central banking system that would be acceptable to both Wall Street and Washington. The attendees were aware of the public’s distrust of centralized financial power and Wall Street, hence the need for secrecy.

The framework for the foundation of the Aldrich Plan was laid at Jekyll Island. This plan called for the establishment of a National Reserve Association with multiple branches, which would serve as a central bank and have significant control over the nation’s banking system.

While the Aldrich Plan was initially met with resistance, especially from those wary of Wall Street’s influence, it laid the groundwork for what would eventually become the Federal Reserve Act. The final form of the Act, passed in 1913, differed in several ways from the Aldrich Plan, particularly in its structure of multiple regional Federal Reserve Banks to decentralize power.

The Federal Reserve Act established the Federal Reserve System as the central bank of the United States, with the dual mandate of maximizing employment and stabilizing prices. The Act sought to balance public and private interests, establish financial stability, and prevent future banking crises.

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What is Fiat Money?

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dedollarization and the introduction of a BRICS basket currency

Fiat currency, also known as fiat money, is a type of currency that is declared by a government to be legal tender and is accepted as a medium of exchange within a specific country or region.

Unlike commodity money, which has intrinsic value because it is backed by gold or silver coin, fiat currency has no inherent value and is not backed by a physical commodity.

Instead, its value is established and maintained by government decree and the trust and confidence of the people who use it.

Modern currencies, including the US Dollar, European Euro and the British Pound, are all examples of fiat currencies.

The United States began transitioning away from the gold-standard during the first half of the 20th century. During the Great Depression, the government took the extreme step of confiscating all of the gold coins that were circulating throughout the economy and made it illegal for private citizens to own gold.

Many of the gold coins were melted into large format gold bars and were moved to the Gold Depository at Fort Knox, where they remain sealed away to this day.

In the case of the dollar, its value is established and maintained through the authority and credibility of the Federal Reserve. It’s essentially a social agreement that people will accept the currency in exchange for goods and services.

Commodity Backed Money

Fiat currency has no inherent value as it is not backed by a physical commodity. Commodity backed money, which is backed by gold, silver or other commodities, has value due to its intrinsic properties.

The Treasury and Federal Reserve have the authority to control the supply of dollars. They can print more money or remove it from circulation, which can influence factors like inflation and deflation.

The regulators at the Fed and Treasury Department have a few monetary policy tools at their disposal to manage the economy. This includes adjusting interest rates, implementing quantitative easing, and regulating the money supply to influence economic conditions.

One of the major concerns with fiat money is the potential for inflation. Since fiat money is not backed by gold or silver, governments and central banks have the authority to print money at will. If the money supply increases faster than the growth of goods and services in the economy, it will lead to inflation, eroding the purchasing power of money and causing prices to rise.

Unlike commodity money like gold or silver, which have intrinsic value, fiat money has no inherent value. Its value is solely based on the trust and confidence that people have in the issuing government. If that trust wanes, the value of fiat currency can be at risk and individuals and everyday workers will continue to see the purchasing power of the dollar diminish over the years. It can impact the ability to save for the future and plan for retirement.

While physical coins and banknotes are common forms of fiat currency, many of today’s transactions are conducted digitally using electronic forms of money, such as online banking, credit cards, and digital wallets.

Fiat Money CBDC

The Federal Reserve and other central banks are pushing for the adoption of a Central Bank Digital Currency (CBDC), which will allow the government to control how you spend your money, and what you will be allowed to purchase.

While this can be used to manage the economy, it also means that economic decisions are concentrated in the hands of a few, which will lead to potential abuse or mismanagement.

CBDC transactions can be easily tracked and monitored by the central bank and government authorities, raising significant concerns about individuals’ financial privacy and the potential for government surveillance.

The digital nature of CBDCs also makes them vulnerable to cyberattacks and hacking attempts. A successful breach could lead to the theft of funds or disruption of the financial system.

The introduction of CBDCs will continue to disrupt traditional banking and payment systems, affecting financial institutions and fintech companies.

CBDC allows central banks to have more direct control over monetary policy and money supply. Fiat currency is influenced by central bank policy but also impacted by commercial banks and economic factors.

The introduction of CBDC requires additional technological infrastructure and regulatory frameworks for digital payments and security. Earlier this year, the Federal Reserve introduced the FedNow payment gateway system, requiring commercial banks to adopt this new payment system is part of the long-term launch plan.

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UBS Issues Report on Central Bank Gold Buying

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Banking giant UBS says demand for gold from central banks around the world is likely to surge this year as countries continue to back away from the US dollar in favor of local currency and alternative currencies that are not subject to foreign government sanctions and the weaponization.

In a new report titled Three Reasons to Buy Gold Now, UBS says that it expects central banks demand to drive additional price growth this year.

Based on Q12023 data, the report estimates that central banks will accumulate 700 metric tons of gold worth $48.74 billion this year.

Many central banks have been adding to their precious metals holdings since 2008 and continue to do so at rates not seen since the 1970s.

President Nixon dropped the association of the dollar to the gold standard in 1971, referred to by historians as The Nixon Shock. This set the stage for replacing the gold standard with a petro-dollar standard, forcing central banks to divest their gold holdings and invest heavily in dollars for the import of oil and other commodities and abolishing the Bretton Woods agreement.

The 2008 financial crisis led to many foreign leaders, led by BRICS leaders, to reconsider the long term implications of the dollar based financial system. Over the last 15 years, various countries have been developing alternative systems that would allow them to buy pass G7 imposed sanctions.

The financial crisis was also the catalyst for the creation of Bitcoin. When Nakamoto generated the genesis block on January 3, 2009 the text included in the block included a headline from the The Times that read:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

The Times

While the data being released by the government shows that economic conditions are stable, everyday Americans are already starting to feel the impact of a long recession. Inflation continues to eat away at take home pay and spending, with many major retailers continuing to close locations and reduce hiring.

The continued weakening of the US dollar is a huge risk for foreign investors and central banks represent the largest group of investors.

With the risk of a full recession hitting the US economy are very high, central banks are wise to continue to move away from dollars and into a safe haven asset.

The core of the BRICS basket currency is expected to be based around gold, silver and other commodities.

UBS is predicting gold prices will continue to climb this year and in to next as the fiat currency wars begin to heat up.

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SEC Tightens Crackdowns on Crypto Exchanges as Federal Reserve Forces Banks to Adopt FedNow CBDC

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The Securities and Exchange Commission launched another attack on crypto exchanges Coinbase and Binance this week, a move that had been expected. Given the overlap with the timeline of the Federal Reserve forcing banks across the country to implement FedNow as part of the backbone of an ongoing effort to implement a central bank digital currency.

The charges against Binance allege that the exchange “misled” its users about how their deposited funds for staking would be used, including by allegedly funneling customer assets into separate entities owned and controlled by its founder, Changpeng Zhao.

The charges against Coinbase allege that the company is acting as an unregistered broker and exchange. The government alleges that the Coinbase’s flagship prime brokerage, exchange and staking programs violate securities laws, adding that the company “has for years defied the regulatory structures and evaded the disclosure requirements” of U.S. securities law.

The SEC is demanding that the company be “permanently restrained and enjoined” from continuing to do so.

Gary Gensler, a long-time advisor to Sam Bankman-Fried and the FTX Exchange prior to becoming the Chair of the SEC, has made statements in the past that he believes that there should be less cryptocurrency options in the marketplace.

The cases are likely to extend for years and will likely have long-term implications for the future of crypto investing that extend far beyond only these two companies. The agency is targeting the marketplaces where trades are brokered and cleared, which is at the heart of the cryptocurrency industry’s critical infrastructure., an unwelcome development for pro-crypto groups like the Blockchain Association.

However, advocates for crypto claim that Congress is responsible for establishing the laws regarding digital assets, with two proposals currently circulating in Committees to create a federal framework for regulation for crypto assets.

“Contrary to what [SEC Chairman Gary Gensler] says, there is no regulatory clarity for digital assets,” said Kristin Smith in a statement Tuesday. She is the CEO of Blockchain Association, a pro-crypto lobbying group who also pointed to two regulatory proposals the House currently under debate.

The Federal Reserve continues to drive CBDC efforts, while gaslighting the public with denials about their ongoing efforts to implement a central bank digital currency as the use of the dollar continues to dwindle around the world.

While the FedNow service is being pitched as a solution to the high fees charged by private banking networks, the platform will also enable the Federal Reserve to launch an assortment of consumer-to-business, business-to-business or consumer-to-consumer.

Topics around CBDC implementations have organically risen as issues in the current presidential race.

Democrat presidential candidate Robert Kennedy Jr believes that the FedNow service is part of a long-term strategy to outlaw bitcoin and any cryptocurrency that competes with the Federal Reserve.

While the FedNow service is initially restricted to interbank transactions, Kennedy points out that this is “the first step in banning and seizing bitcoin as the Treasury did with gold 90 years ago today in 1933.”

He goes on to explain that digital currency could give the US government power to freeze and seize citizens’ assets or even limit your spending when you fail to “to comply with arbitrary diktats.”

Binance has announced that it will be halting all withdrawals of US dollars as soon as June 13 and transitioning to an all crypto model.

The exchange saw the withdrawal of more than $700 million dollars in customer assets this week, with huge sell-offs occurring for certain tokens that were outlined in the government’s lawsuit.

The government’s war against bitcoin and other cryptocurrencies is reminiscent of the efforts to restrict gold ownership and gold bank withdrawals leading up to the government seizure of all privately owned gold in 1933.

Many of the tactics being used by the government are to sow Fear, Uncertainty and Doubt (FUD) and to keep consumers and everyday Americans confused about cryptocurrencies and scared of risking their financial security to private digital tokens. While at the same time, failing to warn or be transparent with the public about the inherent dangers of a central bank controlled digital form of money.

The government does not like competition. The Federal Reserve sees the use of any non-central bank controlled digital currency as a competitor to the dollar. Compared to crypto, gold and silver are the most trusted and proven long term store of value.

Private ownership of precious metals like silver, gold and platinum has been legal since 1974. There are currently an assortment of States, such as Texas, that are pushing to return to the gold-standard with the introduction of precious metals backed digital tokens that can be exchanged for gold.

The Goldback is an existing physical gold-based private legal currency in several states, with the gold-foil notes being issued for New Hampshire, Utah, Wyoming and Nevada is also among the option available to investors.

If you’re an investor looking to use crypto to buy silver bars, you can find a variety of trusted and reputable online bullion dealers who accept various forms of crypto for payment and have the generic 10 oz silver bars shipped directly to your door.

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North Carolina joins Texas, Florida and South Dakota in Fight Against CBDC digital dollar

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A growing number of states are passing new laws in the fight against CBDC from being introduced by the Federal Reserve.

The Federal Reserve system is the country’s central bank. The system is comprised of regional banks that are responsible for the oversight of the privately run banks within its banking district. The regional banks were established by the Federal Reserve Act and have been self-managed by banking insiders that are selected from within their own ranks.

The Federal Reserve system is overseen by a Board of Governors. Each governor is nominate by the President and receives approval from Congress to serve a 14-year term.

Two of the recent bank collapses, Silicon Valley Bank (SVB) and First Republic Bank, both failed under the watch of the current management of the San Francisco Fed.

According to reports, it seems that the staff, which “include 29 PhD economists, an associate economist and an economic analyst, and 15 research associates who are recent graduates from colleges across the country”, may have been spending much of their time focuses on pursuing the DEI agenda instead of doing proper oversight of the banks within their districts.

While the dollar is quickly losing its status as the global reserve currency, actors from a consortium of government agencies are actively pushing the Federal Reserve to implement a digital dollar.

It’s believed that issuing a digital dollar will help restore some credibility with leaders from emerging economy central banks that has been lost due to the widespread weaponization of the currency against foreign governments and individual foreign citizens.

Treasury Under Secretary Nellie Wang has confirmed that a digital dollar implementation is being explored with wholesale CBDC options that include providers of stablecoins. However, the reality is that various CBDC projects have been underway within the Federal Reserve system since the start of the pandemic.

US banks are ramping up in anticipation for the introduction of the FedNow system later this year. Various government agencies actively deny that Fednow is related to CBDC implementation. However, the instant payment service could provide the underpinnings to support institutional transfers that incorporate near real-time settlement.

The ramifications FedNow will have on the remittance industry and the global abandonment of the dollar in favor of local currency trade agreements are being speculated on by industry analysts.

Earlier this year, legislators in Texas became the first to offer a solution against a federal CBDC by introducing legislation to create a state managed gold-backed digital currency.

Texas was also the first state to open a public gold depository where investors can securely vault their wealth.

Several more states are now throwing hats into the fray against a centrally controlled digital dollar.

This week, legislators in North Carolina pushed forward a law that would ban the state’s agencies and institutions from accepting any payments in central bank digital currency (CBDC).

Florida and South Dakota lawmakers are pushing similar legislation as Universal Commercial Code laws emerge as battleground to roadblock a national CBDC.

On Twitter this week, Presidential Candidate Robert Kennedy Jr announced his position against CBDC implementations, decrying that monetary freedom is as important as free speech. In his tweet he cites numerous examples of how Paypal, Visa, Mastercard and GoFundMe have all been weaponized against citizens by both the United States and Canadian governments during the pandemic.

The US economy continues to be hit with a wave of record high inflation. Some analysts see the Feds latest quarter point increase likely leading to period of stagflation across the economy, which had been suggested last year as a possibility by banking and hedge fund executives.

Low Premiums on Britannia and Philharmonic Silver Coins

Precious metals remain one of the few sectors of the economy that remains stable. Utilizing gold and silver as a store of value and wealth continues to motivate many investors.

Premiums for government minted silver coins remain relatively low despite the offerings from the US Mint. Britannia and Philharmonic silver coins remain some of the cheapest options available and are both favorites of stackers.

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Federal Reserve and the Current Board of Governors

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The Federal Reserve system is comprised of 12 Reserve Banks that were established following the outbreak of World War I in 1914.

Each of the twelve national reserve bank regions were chosen following a Congress sponsored selection committee called the Reserve Bank Organizational Committee.

After the districts were defined, each of the Federal Reserve Bank’s self organized amongst the regional banks, with local banks all contributing to the initial reserves from customer deposits.

The Board of Governors, appointed by the President of the United States is responsible for supervision of reserve banks and regulating certain financial institutions and activities.

The first President of the New York Fed was Benjamin Strong Jr. who had been persuaded by JP Morgan to take the job.

The Federal Reserve Bank of New York is also the exclusive fiscal agent of the US Treasury and is responsible for managing government debt by raising money through auctions of marketable Treasury securities (bonds) and through authorized government buybacks. It is also the holder of the General Account for the Treasury, where the Federal Government receives all direct revenue and pays nearly all federal expenses.

It also handles exchange rate management, swapping dollars with foreign currencies under the Treasury’s direction.

The Bank of New York owns and operates a bullion depository vault that is built on bedrock some eighty feet below the streets of Manhattan. As of 2019, the bullion depository held roughly 5,100 metric tons of gold, the large majority being held as the custodian of the reserves of thirty-six central banks.

Current Board of Governors

  • Jerome H. Powell, Chair – Powell was nominated by Donald Trump to serve as the chair of the Federal Reserve, replacing current Treasury Secretary Janet Yellen at the helm of the central bank.
  • Michael S. Barr, Vice Chair for Supervision – Barr was nominated by Joe Biden and confirmed by the Senate in 2022.
  • Michelle W. Bowman – In 2018, Bowman was nominated by Trump and approved by the Senate to serve a 14-year term on the Board of Governors, occupying the seat that represents community banks.
  • Lisa D. Cook – Cook is a Biden nominee that began serving on the Board in May 2022.
  • Philip N. Jefferson – Jefferson is a Biden nominee that began serving on the Board in May 2022.
  • Christopher J. Waller – Waller was nominated by Trump and received the approval of Congress in 2019.
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NY Federal reserve launches CBDC “trial” on the heels of FTX collapse

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central bank digital currency

Several weeks ago, the New York Federal Reserve quietly launched a 12 week long trial of a CBDC “digital dollar” pilot program in partnership with global banking giants like Citigroup Inc, HSBC Holdings Plc, Mastercard Inc and Wells Fargo & Co.

The NYFR describes the project as an attempt to test the feasibility of using blockchain tokens and distributed ledger technology as a mechanism for settlement of liabilities.

This is one of many software and technology projects that the Federal Reserve Bank of New York has been developing through their New York Innovation Center.

The Biden administration has been attempting to take control over the digital assets markets through a combination of Executive Orders and enforcement with the hiring of 70,000 new IRS agents.

On March 9, 2022, Biden signed Executive Order 14143, titled “Ensuring Responsible Development of Digital Assets”.

Government agencies have been funding research projects at private institutions aimed at implementing a fully programmable digital currency such as those endorsed by the G7 and World Economic Forum (WEF).

What is the Federal Reserve New York Innovation Center?
The Federal Reserve Innovation Center is a group within the bank who’s mission is to collaborate on technology research, experimentation and prototyping with banking regulators, the banking industry, academia and international central banks, the Federal Reserve System, the Bank for International Settlements (BIS) Innovation Hub, academia, and the private sector through technical research, experimentation, and prototyping.

The team is chartered to generated insights into high-value central bank-related opportunities, enabling stakeholders and the central bank community to enhance the functioning of the global financial system.

Much of the G7 are following recommendations for CBDC systems endorsed by the WEF that are designed to be centrally controllable and programmable which is the opposite of having a decentralized blockchain.

Back in 2019, the General Manager of the International Bank of Settlements openly spoke about their intent to use CBDC to control which products citizens will be allowed to spend their digital dollars.

The Federal Reserve New York Innovation Center is likely following suggestions endorsed and suggested by the WEF, IBS, G7 and other organizations that have no absolutely no legal authority over the US economy or any other economy.

According to data provided by CBDCTracker.org, more than 60 countries are currently researching or launching pilot programs using CDBC blockchain ledger technology.

Many of the political rank and file in Congress reportedly received donations from FTX and affiliated crypto organizations in the run up to the mid-term elections.


Republicans in Congress have already announced their intent to hold hearings on the collapse of the FTX crypto exchange and into influence peddling by the White House.

In the current bankruptcy petition, the company discloses that it owes its top 50 creditors a total of $3.1 billion dollars but has yet to publicly disclose the list of names.

Shortly after signing EO 14143, former US President Bill Clinton and former UK Prime Minister Tony Blair were both guest speakers at the Crypto Bahamas Conference.


Private Gold Ownership in the United States

During the pandemic the US Mint sold more ounces of gold, silver and platinum coins than ever before.

As a result of the pandemic, private ownership of gold and silver is now the highest it has been since Roosevelt confiscated gold in 1933.

Looking at only cumulative bullion sales of the American Gold Eagle coin series, the US Mint has sold roughly 45.5 million troy ounces of gold eagles from 1986 until 2021.

So far in 2022, it’s reported that the US Mint has sold roughly 976,000 ounces of gold coins as of November.

There have been a variety of problems reported by the US Mint in recent years related to supply chain and planchets that have effected the production of both Gold and Silver bullion coins.

Many investors have been fleeing from the stock and crypto markets due to ongoing inflation, mass layoffs, rising interest rates and fears of a recession or worse. Millions of Americans continue to lose faith in the US economy as millions face layoffs the war in Ukraine drags on without any end in sight.

Buyers demand low premiums on gold and silver. Investors, preppers and many every day Americans continue to search for a safe haven investment as some lobby for a return to a gold-standard economy.

As of March 5 2021, the US Mint stores 147.3 million troy ounces of gold at Fort Knox, down from the highest highest historic gold holdings of 649.6 million ounces in December 31, 1941.

According to the US Mint more than 512.3 million troy ounces of gold has been removed from the Fort Knox Gold Repository since 1941.

According to weekly published reports by the Federal Reserve, roughly 20 million troy ounces is stored in the New York Federal Reserve system.

Monthly Gold Report data provided by the Department of Treasury shows 261,498,926.2 million troy ounces in their inventory, with roughly 147.6 million ounces being held in Fort Knox, 43.8 million in Denver, CO and 54.0 million in West Point, NY. The DoT reports gold holdings at the Federal Reserve to be around 13.5 million ounces.

Between 1941 and 2022, the Department of Treasury seems to have a discrepancy of roughly 388 million troy ounces of gold.

Maybe someone should be asking where did all the gold that was removed from Fort Knox go?

Blockchain Backed Gold Ownership

Many central banks that increased their gold holdings during the pandemic, including Russia, China and other BRICS nations are experimenting with blockchain technology and how it may be able to help their economy.

Bitcoin and other decentralized blockchain technologies are a perfect use case to establish trust amongst sovereign central banks and in developing and emerging nations to validate their gold, other precious metals and minerals holdings to allow for fair participation in world trade and wealth building.

The first mined Bitcoin’s Genesis block contains an encrypted message attached to the blockchain that reads, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” 

Cryptocurrency technology was created in response to the crash of the financial markets in 2008.

The purpose behind the bitcoin, cryptocurrency and blockchain movements have evolved over the last decade.

Most importantly, these technologies can enable trust for the banking and financial system that has been plagued by corruption and mistrust since Roosevelt helped the bankers at the Federal Reserve steal the gold from the American public in 1933.

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Federal Reserve Votes to Raise Key Interest Rate .75%

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As expected, the Federal Open Market Committee hiked the benchmark interest rate by 3/4 of a percentage point at the end of their two day meeting.

Ongoing failed attempts by the Biden administration and Congress to get worries about the economy and a recession out of the minds of voters leading into the mid-term elections are failing miserably as prices of everyday basics continue to soar for many already living paycheck to paycheck. 

Industry leaders, including JP Morgan Chase CEO are predicting the economy may take a turn worse than a recession. Mass layoffs have already been announced at many large companies across a variety of industries.

Despite economic sanctions against Russia by the LBMA, world leaders from Brazil, India and other mineral rich developing nations are looking towards the Moscow World Standard as an alternative precious metals exchange. 

In response the economic sanctions, Russia took steps to back the ruble with gold earlier this year. Leaders of developing nations are seeing how returning to a gold-standard economy may help deflect repercussions of the recession and other issues facing the US and Europe.

Key Points

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Federal Open Market Committee 2023 Agenda

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The Federal Open Market Committee is the part of the Federal Reserve that is responsible for managing open market operations.

The FOMC uses the three primary tools to influence the direction of the economy.

The Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks.

This gives them control of the federal funds rate. The federal funds rate is the interest rate at which depository institutions (banks) lend balances at the Federal Reserve to other depository institutions (banks) overnight.

Changes in the federal funds rate trigger a chain of events that affect many other market factors. Those factors include short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services.

The FOMC holds eight regularly scheduled meetings per year.

At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.

2023 FOMC Scheduled Meetings

These are the scheduled meeting dates for the FOMC in 2023.

  • January 31-February 1
  • March 21-22*
  • May 2-3
  • June 13-14*
  • July 25-26
  • September 19-20*
  • October 31-November 1
  • December 12-13*


* Meeting associated with a Summary of Economic Projections.

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Is it legal to own Precious Metals?

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For over 40 years, from 1933 until 1974, the US government made it illegal for citizens to own gold.

Thanks to President Gerald Ford, it is legal for everyone to own gold, silver and other precious metals since 1974.

History of Precious Metals Prohibition

In the early 20th century paper currency was far less common than today. Paper bills were often only available in large denominations commercial and interbank transactions. Much of the currency in circulation was coinage minted of silver and gold alloys.

Economies were still based on the gold-standard. The coins in circulation were minted of 21k gold, which is a mixture of 90% gold and 10% copper for strength and wear resistance during everyday circulation.

Gold coins before 1933 were minted in denominations that include the $2.50 (quarter eagle), $5.00 (half eagle), $10 (eagle) and $20 (double eagle).

In 1921, following the end of the first World War, the Morgan Silver Dollar was replaced with the Peace Silver Dollar. Both coins were composed of an alloy containing a mix of 90% silver and 10% copper. The amount of pure silver in each $1 USD coin being 0.7734 troy ounces.

Also during that time smaller denominations of coins, including the dime, quarter and half-dollar, we also minted from the same silver and copper mixture. The US Mint continued to issue 90% silver coins through 1964.

When clad coins began to circulate in 1965, some citizens remembered the gold seizure that happened thirty-two years early.

The roaring 20’s led to the Great Depression. Wall Street Banks, along with regional banks under purview of the young Federal Reserve system were happy to give out margin loans, unsecured credit in fiat currency.

During the economic hardship many people lost faith in the banking system. Instead of depositing cash into banks, many people turned to hoarding cash at home in the form of gold and silver coins.

During the Great Depression, Roosevelt used an obscure and obsolete piece of legislation meant to prevent the German government to profit from patents in the United States during the World War I as justification for his numerous Executive Orders to confiscate gold coins from the economy.

On April 5, 1933, after enduring several years of the Great Depression, President Franklin Roosevelt signed Executive Order 6102.

With the swipe of his pen, Roosevelt made it a crime for any US citizen to own gold coins, gold bullion or even gold certificates, which were a form of gold-backed fiat currency that was exchangeable for gold. In exchange, the government offered citizens $20.67 in fiat for each ounce of gold that was surrendered.

All gold was ordered to be surrendered to the government. Within the first thirty days the Treasury was able to collect roughly one third of the $1,400,000,000 in gold that was in circulation.

Any person who failed to comply with the presidential order faced imprisonment and fines of up to $10,000. Many private citizens and investors were put on a list, targeted, arrested, prosecuted, fined, imprisoned and had their gold seized.

The order did exempt some items. Such as jewelry, numismatic collectibles, items used by industry, some professions and artists.

In defiance to the order, people drilled holes or attached hasps to the coins to convert coins into pendants to hang on a chain to meet the minimum standard of jewelry.

The seizures, arrests and prosecutions of those who did not surrender their gold continued for most of 1933. Roosevelt signed additional Executive Orders throughout the year.

One of which gave the Justice Department the authority to build a list of citizens suspected to be ‘gold hoarders’. Essentially acting as a government backed gestapo.

During the summer of 1933, agents from the Justice Department visited the homes of “known hoarders of gold” to confiscate more than $38,901,009 worth of gold.

The Emergency Banking Act of 1933 was supposed to help restore faith in the banking system and the economy after the Federal Reserve led the country into the Great Depression.

The prohibition on private ownership of gold continued for 41 years.

Nixon Shock

During the early 1970s, Nixon was facing rising unemployment, high inflation, the looming oil crisis and political foes. In August of 1971, the President called together top economic advisors for a secret meeting at Camp David.

Notable participants in the meeting included Federal Reserve Chairman Arthur Burns and Treasury Secretary John Connally. Also present, then Undersecretary for International Monetary Affairs and future Federal Reserve Chairman Paul Volcker.

Following this meeting Richard Nixon authorized then Treasury Secretary John Connally to break the Bretton Woods Agreement that had defined the rules of international trade amongst many countries following World War II.

Without consulting any international leaders, the actions included the immediate suspension of the “gold standard”.

Nixon directed the Treasury Secretary to abolish the convertibility of dollars into gold through the London Gold Pool. This also removed the fixed price of gold from $35 an ounce to a market based system.

By 1973, the US gold standard that was established by Bretton Woods had been replaced. The new system based on free floating exchange of fiat currencies.

Following the resignation of Nixon, one of the first laws signed by President Ford included a bill which reversed Roosevelt’s Executive Orders.

The bill authorized expansion of the World Bank and included provisions that legalized citizens full authority to purchase, hold, sell, or otherwise deal with gold in the United States or abroad. It has been legal for anyone to own, hoard, buy and sell gold in the United States since December 1, 1974.

The gold bull run that followed culminated in a price peak of $850 USD per ounce in January 1980.

Sovereign Gold Bullion Market

The Gold Krugerrand was the first gold bullion coins to be sold to investors when it debuted in 1967.

At the time, apartheid sanctions against South Africa made it difficult to invest in Gold Krugerrands. The top gold coins of the day included the Gold 100 Corona from Austria and the Mexican 50 Pesos Gold Coin. These vintage gold coins have maintained their popularity with investors.

In 1979, the Royal Canadian Mint introduced the first mintage of the Maple Leaf 1 oz Gold Coin.

The basic design of the Canadian Maple Leaf 1 oz Gold Coin has remained largely unchanged since its creation.

The US Mint made several failed attempts during the early 1980s to woo precious metals investors. One notable attempt is the American Arts Commemorative Series Medallions.

There are ten medallions that are part of the American Arts Commemorative Series that were minted from 1980 through 1984.

The larger medallions are minted 1 troy ounce of pure gold.  While the smaller medallions contain 1/2 troy ounce of pure gold. At the time of release, the medallions were poorly received by collectors, the public and investors.

These medallions were struck from an alloy containing .900 fine gold. Today, these medallions are popular with gold stackers and investors and can are often on sale in the secondary market very close to spot price.

While the series was a commercial failure, it paved the way for Congress to create and establish the guidelines for the American Eagle series of coins from the US Mint.

Gold American Eagle

The American Eagle series premiered in 1986. It continues to be one of the most popular precious metal investment vehicles in the world.

It has been more than 52 years since the Nixon Shock moved off the United States off the gold standard.

Private ownership of gold, silver and other precious metals remains legal throughout the United States today.

Demand from investors continues to grow as more people continue to lose faith in the banking system, traditional investments like stocks and bonds as well as the federal government’s ability to manage and regulate effectively given the massive amount of corruption plaguing Washington.

As of 2023, more than 47 million ounces of gold have been used in minting of four denominations of American Gold Eagle coins. Investor demand for American Gold Eagle coins remains strong after 37 years.