On July 1, a Virginia law extending and expanding a sales tax exemption on the sale of gold and silver bullion and coins went into effect. Ending the sales tax will relieve some of the tax burdens on investors, and take a step toward treating precious metal bullions as money instead of a commodity.
Rep. Alex Mooney (R-W.Va.) introduced HR6790 on Sept. 12. Titled the Monetary Metals Tax Neutrality Act of 2018, the legislation would amend the IRS code to exempt the sale of “refined gold or silver bullion, coins, bars, rounds, or ingots which are valued primarily based on their metal content and not their form,” from capital gains taxes.
Tuesday marked the 167th anniversary of the discovery of gold in Ballarat, Victoria, Australia. Since then, the Aussies have become the second largest gold producing country in the world. But analysts project gold output in the Land Down Under, along with several other key countries, could slump to “generational lows” in the midterm.
Not too long ago, my wife came home with two big flats of Powerade.
We didn’t need Powerade. We had plenty.
And yet I praised her for her shopping prowess. Why? Because she got the stuff dirt cheap and we’re going to need more Powerade down the road.
Smart shoppers look for bargains. And right now, gold is a bargain. If you’re a smart shopper, you’re going to want to take advantage of this.
When you first venture out to purchase your gold or silver the choices will be plentiful and so will the advice. You’ll face the options like: squares or circles, shiny or dull, and government issued or good ol’ minted bullion. It can become overwhelming and even confusing deciding whether junk or .999 rounds are the best choice for you. However, one of the best things you can do before making that kind of decision is consulting with experts…and/or someone you trust.
When I first decided that I should be investing in precious metals, the motivation came from my readings on the Federal Reserve Bank and the inflation that was taking place in the US and abroad. I had always thought it was silly to keep money in a bank account when the interest I was accruing wasn’t working fast enough to combat the decline of the dollar’s purchasing power. Thus, I turned to what seemed like a trustworthy investment: precious metals (namely silver, because I didn’t have $500K to throw around). It was then I realized, I need to start educating myself. I hope this was a thought that crossed your mind as well.