Politics revives gold fever in US
Investors are turning again to gold as a safe haven. But they may not know of the tax risks associated with owning a collectible item.
Sales of American Eagle gold coins, the most popular type made by the U.S. Mint, have soared more than 131% in November, the most in two years, as investors brace themselves for the possibility of the economy going over the fiscal cliff. Sales of Canadian coins also have skyrocketed, according to The Financial Times.Gold has been seen as a safe haven for investors since at least the Middle Ages. Prices for the precious metal have jumped 9% this year, spurred by the monetary easing policies of the Federal Reserve and other central banks, according to Reuters. They may move higher if the Fed decides to undertake more bond purchases.
President "Obama did me a favor in some ways," Chicago jeweler Tobia Kahn told the FT. "Now people are buying gold and jewels not because they like them but because of fear. They’re trying to protect their wealth."
Folks are also worried about their guns. Sales of firearms soared in the weeks after the reelection of Barack Obama as people worried that the incumbent Democrat and his allies in Congress were going to crack down on sales of firearms, particularly assault weapons. Sales will eventually return to their normal rates as people realize that the chances of new gun control laws being enacted are slim to none. Gold prices will eventually retreat as well once the fiscal cliff is resolved, and it will be -- one way or another.
Meanwhile, people should cure their gold fever with gold-mining stocks or funds that own them instead of coins. Many investors may not realize that gold coins are considered by the Internal Revenue Service as a "collectible" with a capital gains rate of 28%. This even applies to exchange-traded funds that hold physical gold. Gold-mining stocks and funds that hold them are subject to this rate.
Hoarding gold coins does not make much economic sense unless you are certain that the U.S. economic system is going to collapse and you will need them for bartering purposes.
--Follow Jonathan Berr on Twitter @jdberr
More from Money Now
- What Cory Booker is learning about food stamps
- Why are gun stocks tumbling?
- Wild horses a headache for US government
The makeover will cost between $700,000 and $900,000."
To me, the bigger story here is; Why the heII does it cost almost a MILLION DOLLARS to replace one sentence????? And people wonder why the country's broke.........
History of Retro Active Immunity from Prosecution.
1. Granted for the illegal merger of six large banks back in 1964. (Too big to fail)
2. Granted for illegal wire taps. ( Fisa bill that led to the patriot act)
3. Granted for illegal use of torture.
4. Granted to Judges for excepting money that was not authorized by law. (SBX211)
All of our problems arise when government is above the law and when Corporations can pay politicians to grant them amnesty from the law. Nobody should be above the law. NOBODY
Okay....I believe Am.Eagles, Can. Maples and Kruggerands(sp) are considered "collectibles"
under American IRS Laws....Along with bullion and other semi- or precious items of Jewlery or Metals.
SO I THINK, Jonathan is correct ?? As he stated....
But then I somewhat AGREE, with Tummy and Notso....
Barter and quiet trades are probably best way to go, BUT you walk a thin line and are basically pulling off something that is questionable...IMO.
And could be illegal by Law...?
But hell I kinda look at it this way, are you worst then the Rich Elitest, with off shore or
The Big Corps with their deposits outside of U.S. They just hide and conform to what THEY think is right.
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Trending NOW
- 1.men's wearhouse
- 2.spy
- 3.fdx
- 4.amrn
- 5.aeropostale
- 6.msft
- 7.vix
- 8.zero hedge
- 9.gld
- 10.nok
About moneyNOW
MoneyNOW brings users smart, original and entertaining takes on the latest business and investing topics that are buzzing on the Web.
RECENT POSTS
While caffeine unquestionably improves focus, it blocks the ability to let the mind wander and form original ideas.
- Western wildfires raise the question of who pays
- 'The Wolf of Wall Street' is set to prowl again
- What vintage aircraft fly on: Donations, enthusiasm
- Obamacare surprise: Young people want coverage
- Urban Outfitters pulls drug-themed gear
- Donald Trump rakes in millions selling name to world
- EA's Simpsons game triggers gun fans' ire
- George Zimmer vs. Men's Wearhouse over firing
- New $25,000 rifle is fully loaded -- and then some
MARKET UPDATE
[BRIEFING.COM] Equities ended on their lows with the S&P 500 down 1.4%.
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
More Market News
TOP STOCKS
Plus, after much ado, Softbank is oh-so-close to acquiring Sprint.
MSN MONEY'S
- Shared
- Commented
- Viewed
