Future tax on PMs?

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#1 Sun, Jan 22, 2012 - 10:17am
unknownrider
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Future tax on PMs?

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I've been meaning to post this question for awhile, so here goes. I am relatively new to all the " what to do when TSHTF " stuff. I've bought some physical, bought some PHYS held in my 401K, making some preps around the house, etc., but I still read about the possibility of a future high tax on gold and silver. I'm reading this in many places, from reputable people that are pro-PMs, not the idiot "gold bubble" media bunch. Some say that if a future global currency is based on a basket of commodities that include gold and silver, governments ( not just the U.S. ) would impose such crippling taxes on redemption that it would negate a large portion of one's profits. Certainly, if the government smelled a profit there, they would enact such a tax overnight. 

I'm trying to get my head around the optimum scenario here. One could sell their gold as it enters it's phase transition, let's say $5000.00/ounce for starters, but presumably taxes would have to be paid as you go. ( Today, tax rates on gold or silver is 28%, because it is considered a collectable. Some suggests future rates as high as 90%, although that seems like an extreme ).

One could hold their gold and silver until the smoke clears, if it ever does, and be sitting on the greatest investment of their lives, but then what? I personally don't think we will ever get to the point where we will be buying goods and services with those coins/bars. Also, I'm a little tired of hearing this one " I'll get rid of my gold coin when I can trade it for a house ". What the hell is that supposed to mean? 

I'm sure there is someone out there that has been buying PMs a lot longer than I have and can provide some real answers here. I will add that I am thinking of buying more PMs and commodities in general, so I'm on board here, just can't shake these nagging feelings and would like some thoughts. Thanks. 

Edited by: unknownrider on Nov 8, 2014 - 5:06am
Sun, Jan 22, 2012 - 8:38pm
The man who stole a leopard
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The Gold Must Flow

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From our friend of a friend of another...

The bottom line is that private gold needs to flow as a fertile member of the balance of trade. There will be no advantage for the USG to confiscate or tax above-ground gold this time. Gold may be utterly "useless" to the present debt-based economy, but it will be absolutely vital in the Freegold economy...

https://fofoa.blogspot.com/2012/01/gold-must-flow.html

Sun, Jan 22, 2012 - 11:10pm
Eternal Student
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To what benefit?

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A tax on PM's would only result in the stack-n-holders just holding. If they needed to sell, it's pretty trivial to melt PMs down and turn them into industrial versions. Given silvers' wide usage in industry, a tax on industrial metal is questionable. Same for jewelry.

Confiscation is a different story. But what often gets overlooked here is that the 1933 confiscation was mostly aimed at the Banks, and not the average person. The latter was collateral damage; it was the Banks which had the lions share of the gold. The U.S. still has their gold, btw. And the Banks have paper receipts. Supposedly.

I'd be far more concerned about paper traded funds, like what Sprott offers. As one of the interviews which Turd recently published pointed out, now it only takes a click of a mouse to confiscate all of the PSLV shares.

Sprott's treasure chest could, in theory, end up being redeemed by the Feds.

Still, it's not something that I'm worried about. This stuff is just eyeball-generating FUD. There is NO safe place to store your wealth. Not cash, not stocks, not housing, not PMs. Nothing. That is the world we live in now. Best to just get used to it.

Mon, Jan 23, 2012 - 10:07am (Reply to #3)
unknownrider
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Thanks for the reply. Yes, I

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Thanks for the reply. Yes, I guess your last line there pretty much sums it up. I do get a little concerned though when people talk about going " all in " on PMs. Having all of your wealth in any one item is a recipe for disaster. BTW, I think I remember that FDRs' executive order set a new price on gold coins at around $20.00. His next step, or in the same step was raise the price to $35.00. Kind of sounds like a $15.00 or almost 50% 'tax' to me.

Mon, Jan 23, 2012 - 10:09am (Reply to #2)
unknownrider
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fofoa

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I've tried to read that fofoa gibberish at least twice now. I feel like there's a really a great point there, but it is written so poorly I can't get through it.

Mon, Jan 23, 2012 - 10:27am (Reply to #5)
unknownrider
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fofoa-updated

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That fofoa article, however was much better. Thanks for the reply.

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