Good news for precious metals investors in Arizona.
On Monday, Gov. Doug Ducey signed a bill into law that eliminates states capital gains taxes on gold and silver specie. It tax repeal will not only benefit Arizonans who invest in gold and silver, it will also facilitate their use as currency and undermine the Federal Reserve’s monopoly on money.
Some have dubbed it the “Trump Bump.”
Since the election of Donald Trump, the stock market has soared. Many Americans believed the new president would turn things around and “make America great again!” Meanwhile, the sale of precious metals has slumped in the US. While sales of gold and silver have soared in places like China and India, Americans have been buying up US stocks.
The US government isn’t the only one piling up debt.
We’ve reported on the ticking debt bomb in the US. Apparently, the timer is ticking in China as well. This week, Moody’s downgraded the country’s credit rating from A1 to Aa3, and changed its outlook from stable to negative. It was the first downgrade of China’s credit rating since 1989.
Meanwhile, Chinese investors are buying gold.
Over the last few weeks, the media has fixated on whether or not firing FBI director James Comey and allegations of Russian collusion will turn into Donald Trump’s Watergate. But in a recent column, economic analyst Jim Rickards said that really isn’t the most significant thing that‘s happened.
While everyone is focused on the Washington circus this week, they’re missing what could be the real news — gold.”
This article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
In my previous article, Being a Good Financial Steward: A Lesson from the Parable of Talents, I encouraged readers to follow the example of the good servants by finding a return on their precious metals. The good servants traded their talents (literally weights in gold and silver) in order to gain more talents.
And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. Then he that had received the five talents went and traded with the same, and made them other five talents. And likewise he that had received two, he also gained other two.” Matthew 25:15-17
While it’s not clear what activities were in involved in the trading of these talents, we are confident that the good servants were productive. (Matthew 25:20) Comparing this with the bad servant who simply dug his talent in the ground out of fear readers are given clear examples of both productive and unproductive financial stewardship.
Could Trump be facing his own Watergate?
The president’s firing of FBI director James Comey in the midst of probes into the administration’s possible connections with Russia set off a political firestorm. There has even been talk of impeachment in recent weeks.
While at this point, much of the rhetoric spinning around the Beltway is political in nature, the controversy surrounding the administration still spells trouble for Trump. Even if there is no fire burning underneath the smoke, political opponents will undoubtedly leverage the chaos to slow the administration’s agenda.
Everything is better when it’s dipped in gold!
So, how about a $1 million gold toilet?
The rapper Birdman has one. He posted a photo of it on Instagram.
And that’s just one of the crazy things coated in gold recently highlighted on CNBC’s “The Filthy Rich Guide.”
Remember tax reform?
It seems like a lifetime ago. But it was just last month that the Trump administration rolled out its ambitious tax reform plan. The single-page blueprint was really more of an outline and offered little in the way of specifics. Still, it sparked hope that Republicans would push forward with significant tax reform this year.
Since then, we’ve heard pretty much nothing. Talk of significant tax reform got sucked into a black hole of FBI director firings and Russia probes. In fact, many analysts are starting to doubt Republicans will be able to get tax reform done at all.
Bills are moving forward in several states that would support gold and silver and ultimately help undermine the Federal Reserves monopoly on money.
Legislation that would eliminate state capital gains taxes on gold and silver specie is sitting on Arizona Gov. Doug Ducey’s desk waiting for his action.
Rep. Mark Finchem (R-Tucson) introduced HB2014 earlier this year. The legislation would eliminate state capital gains taxes on income “derived from the exchange of one kind of legal tender for another kind of legal tender.” The bill defines legal tender as “a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.” “Specie” means coins having precious metal content.
In effect, passage into law would “legalize the Constitution” by treating gold and silver specie as money.
Minneapolis Fed President Neel Kashkari said the central bank should keep the bubbles inflated.
OK, he didn’t say that exactly. But that was the message reading between the lines of a speech Kaskari delivered this week. Specifically, the Minneapolis Fed president said the Federal Reserve should not raise interest rates in an effort to prevent bubbles.
Given the challenges of identifying bubbles with any confidence and the costs of making a policy mistake, I believe the odds of circumstances ever making sense to use monetary policy to try to slow asset prices down are very low. I won’t say never—but a whole lot of evidence would have to line up just right for it to be the prudent course of action.”
The former Goldman Sachs Group executive was the lone dissenter when the Fed raised interest rates in March.