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
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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.
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