When Owning Gold Made You a Target for Execution
By Doug Hornig, Hard Assets Alliance
During tumultuous times, the instinct for self-preservation often leads individuals to make desperate choices. One such choice was witnessed in Vietnam in 1975, where a middle-class exodus unfolded against the backdrop of an impending communist takeover.
As the Communist forces advanced southward, countless terrified Vietnamese, predominantly from the middle-class business community, fled their homes in fear for their lives.
The more affluent and resourceful had anticipated this crisis earlier, arranging evacuation plans and relocating their assets to safeguard against the impending turmoil.
However, as the country neared a dangerous turning point, it was the middle classes that faced the looming threats of imprisonment, torture, and execution if they remained behind.
Desperation drove them to leave the country by any means necessary.
Many were airlifted out—125,000 individuals in the spring of 1975, just before Saigon fell. Those with valuable possessions, primarily from the middle-class business sphere in Saigon, sold everything they owned—vehicles, furniture, artworks, and family heirlooms, all for quick cash. The urgency of their situation rendered everything expendable.
With only the clothes they wore or what could fit in a single suitcase, they liquidated their assets. For them, owning gold had become a dual-edged sword—both a target for persecution and a crucial means of escape and survival amidst chaos.
Fully aware they would not return, they traded their belongings for gold, recognizing that local currency would be worthless abroad. Similarly, U.S. dollars were cumbersome and easily lost, stolen, or damaged.
What they needed was something portable, easy to conceal, and universally valuable.
Gold fit this criteria perfectly. In exile, it represented security during traumatic upheavals—be it war, natural disasters, or economic crises. Those who held onto gold had a better chance of survival.
In their rush to flee Vietnam, the middle class exchanged their assets for kim thanh—small gold “leaves,” each about 1.2 troy ounces, traditionally used in the Far East. They sewed thin strips of this gold into their garments, carrying only what they could manage, hoping for the best.
Gold symbolized their hope for stability, ensuring that they arrived in a new land with resources, rather than as beggars on foreign streets.
When Owning Gold Meant a New Beginning
The Vietnamese who relocated to the United States with tangible assets managed to rebuild their lives, largely integrating into the middle class. Many carved out successful niches in areas like Orange County, California, and Silicon Valley, where they launched businesses, prioritized their children’s education, and achieved political influence.
This flourishing subculture found its roots in the very gold that once signified survival.
While America has been shielded from the civil strife experienced by the Vietnamese for nearly a century and a half, it remains susceptible to various types of crises, including economic ones. History shows that during economic downturns, the allure of gold resurfaces, as evidenced during the financial sector collapse in 2007-2008.
At that time, demand for gold surged, leading to significant scarcity. Buyers faced premiums of 9-15 percent over spot prices just to secure coins—if they could find any at all. Many lacked access to the right information, and delays of one to two months in shipping became commonplace, occasionally extending to four months.
Some dealers were even advised by suppliers not to sell, as it was uncertain when or if orders would be fulfilled. This created a paradox during a peak in demand, as many were unable to sell what they simply didn’t have.
According to dealers, a major contributor to the supply crisis was large-scale buyers, often purchasing in excess of $1 million. When uncertainty looms, wealthy individuals gravitate towards gold, swiftly removing substantial amounts from the market.
If the financial system hadn’t stabilized when it did—albeit precariously—it’s possible that gold would have become both scarce and prohibitively expensive. These investors sought physical gold, eschewing paper substitutes.
Even amid Wall Street’s calamity, purchasing paper gold through ETFs or unallocated accounts was relatively simple, highlighting the stark difference in desirability between physical gold and paper assets.
The Historical Lesson Could Not be More Clear
Knowing how to invest in gold bullion is essential for prudent investing, as it serves as a reliable store of value when paper currencies falter.
Consider the precarious state of the global fiat currency system.
The extensive money printing and subsequent currency dilution portend possible high inflation or even hyperinflation, both of which are looming realities.
Furthermore, the shaky foundations of numerous banks and their financial products highlight the imminent potential for crisis. History reminds us that we’re often just steps away from the next upheaval, which could well exceed previous challenges.
For many investors seeking protection against these looming threats, the misunderstanding of how to buy and store physical precious metals leads them to paper gold and silver. This approach is fundamentally flawed.
Many confuse ETFs with actual physical holdings. Instead of safeguarding against economic decline, ETFs (like GLD) can subject investors to additional risks.
Thus, possessing physical gold and silver that remains within one’s direct control is more vital than ever. Fortunately, acquiring precious metals can be as straightforward as a few clicks online.
For insight on how to approach this process with the ease of an ETF while avoiding related risks, consider reading our complimentary report, Precious Metals Breakthrough Takes Down GLD.
The time may come when purchasing precious metals becomes nearly impossible. Like attempting to buy insurance after a disaster has struck, you likely won’t find gold readily available following the next financial crisis.
Learn more about gold investing.
Sincerely,
Doug Hornig
for Economic Prism
[Editor’s Note: Doug Hornig is a Senior Editor with Casey Research. Doug began with Casey Research as a freelance writer for the former publication What We Now Know, contributing nearly 125 articles. In October 2005, he became the editor of Casey’s Daily Resource Plus and later joined the Casey team full-time, helping launch BIG GOLD, which he co-edited until the summer of 2009. Since then, he has contributed to Casey’s Extraordinary Technology, the Daily Dispatch, and other Casey publications, as well as producing articles for online readership.]
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