Where did your ancestors get all this gold, were they the owners of a gold mine? The Gov. didn't rip off people , they were paid for their gold, many hid it simply because as now they care more for themselves than their country, they felt they were more important. You may not remember when the Hunt Brothers(I think) created a big run on silver & drove the price up. Everyone was running to sell their silver & they were melting silver antiques & works of art but that could never happen today. Just where do you propose we get all this gold & do you have an electron microscope to be able to see your life savings before the wind blows it away? http://www.huppi.com/kangaroo/L-gold.htm
Sam, did they have electron microscopes before the Federal Reserve came into existence? Was their gold (aside from mined or panned sources) in the form of dust? A 0.516 Troy ounce gold coin is not dust. Neither is a 0.774 Troy ounce silver coin. These would be (and in fact were) pretty normal size coins. I believe a Troy ounce is within the ballpark of 12 of them weighing a pound, whereas an Avoirdupois ounce requires 16 to be the same pound, so these coins had some bulk!
As to where they got it, they worked for it and earned it. You probably will never believe this samhill, but back then when money was silver and gold it was amazingly sort of just like today, whereby you make something or you work for someone who makes somethings, or you provide a service, or you teach, perform, etc... and you get paid for your wealth creating accomplishments.
As to where the government got it, amazingly they actually didn't. They only took anyones mined gold or silver and minted it into coins (provided that the owner desired that end for it). They did not own it, they merely gave it uniformity and consistency and coined it into currency (for a very small and token seigniorage fee of some of the metal). Then they gave it right back to the miners (owners), who eventually bought things or banked them, etc..., thereby introducing them into circulation. The government back then was not into creating wealth from thin air, and it also was not in the mining business. Things were much more honest back then. Only those who worked for money actually ended up with money.