Sun, Jan 22, 2012 - 10:17am
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