Why gold bonds for scams?
The central concept of most of the reported scams depends on convincing would-be investors that uncancelled gold bonds still have value. Some of the scams weave a second myth that the United States government will somehow pay off those old bonds. Both stories are total fabrications. But here is the ‘logic’ the scams depend upon. Gold bonds specifically promise to repay principal and interest in gold coin having a value at a definite point in time. Prior to 1933, that value was $20.67 per ounce in the U.S. By compounding outstanding principal and interest payments in gold, and then converting to today’s dollars, crooks ‘prove’ that a single uncancelled $1000 gold bond could theoretically be worth anywhere from a few hundred thousand dollars to many millions of dollars. Who would pay such values? Certainly not bankrupt companies. So criminals suggest that bonds showing ‘United States of America’ at the top are guaranteed by the federal government. Scams depend on ignorance Such absurd sc
