Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Will Gold and Silver Investors Ever Get a Tax Overhaul?

Commodities / Gold and Silver 2010 Mar 18, 2010 - 02:32 AM GMT

By: Dr_Jeff_Lewis

Commodities

With tax time right around the corner, investors of all types are preparing their finances to determine their final tax burden.  While some investors are paying as little as 15% on their capital gains, precious metals investors are stuck paying 28% – but perhaps not for long.


Capital Gains Taxation

In the United States, long term capital gains taxes come in at just 15%, well under ordinary income tax rates.  Unfortunately, the US government refuses to recognize gold and silver as similar investments, choosing to relegate them as “collectibles” and stamping a hefty 28% charge on any potential profits. 

However, as precious metals investing becomes more popular, this once small group of investors is gaining weight with Congress.  In recent years, many new resolutions to declare silver and gold an investment rather than a collectable have come before Congress.

An Unlikely Helper

Although physical bullion and exchange-traded funds compete directly with each other for investment dollars, exchange-traded fund companies are helping to lead the charge against unfair tax treatment.  Even ETFs – which trade like stocks, pay dividends like stocks, and are bought and sold like stocks – are subject to the collectible tax rate of 28% if they hold certain commodities, mostly precious metals. 
Of course, these companies have a stake in retaining their clients, and they have become leaders in a fight against unfair tax treatment. 

Luckily for individual investors without the weight and pull of multi-billion dollar businesses, banks are also some of the biggest lobbyists in the nation, and they too have the ability to help the taxation lot of precious metals.

The Time is Now

With gold and silver prices making the nightly news alongside indexes like the Dow Jones and Nasdaq, now is a better time than ever for real tax reform and fair treatment for silver and gold investors. 

Although a higher tax rate is unlikely to scare anyone away from the huge benefits of gold and silver, it would be a benefit for investors to receive the same tax treatment when they decide to cash in their earnings.  Seeing as tax credits and fair taxing solutions are on the top of voters’ wish lists, and with the previous bill earning 15 cosponsors in the Senate, silver and gold investors are very much on their way to fair treatment.

Taxes Aside

Even with unfair taxing schemes by the federal government, the advantages of gold and silver as a store of wealth are not lost.  Throughout history, these two metals have prevailed through every financial meltdown, depression, war and famine to emerge as the best currency. 

Though Uncle Sam may not appreciate your wise financial decision to buy metals and hedge your assets, you're doing the right thing.  And as the political winds shift from left to right, pro-government to anti-government and everything in between, precious metals investors should be assured that they're on their way to one of the biggest tax overhauls in history.  When real money is taxed fairly, expect a whole new movement into precious metals as currency.

By Dr. Jeff Lewis

Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

Copyright © 2010 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules