Is this the week to really load up?
Talking to friends here in London who are bond traders, and 100% consensus is yes, the yellow stuff is going to be on a long, long, long march upward, to levels we didn't even think of
But it'll be a wild ride. So if you buy here at $600, be prepared to buy more at $500 perhaps. Or not.
Why gold?
1) World store of value when everything else seems insecure
2) Geopolitical tensions
3) Questionable dollar
4) Demand
5) Supply
6) Interest rates
7) Inflation
Also, any smart tax folks out there. Here's a question: If I buy GLD here, any gains will be at the high cap gains rate (28%?) because gold is classified as a collectible. If I buy in my IRA, vs. in my taxable account, can I escape cap gains - and then just pay taxes a couple of decades from now as I withdraw?
April 16, 2006
Gold.
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18 comments:
This is my understanding:
GLD/IAU are ETFs and will be taxed like other captial gains. However, if you sell physical metal, that will be taxed as a collectible.
Please correct me if wrong.
They can only tax me on sales of physical metal if they can find me!
F U IRS!
F U FEDERAL RESERVE!
F U CONGRESS!
F U BUSH!
YA BUNCH OF FREELOADERS!
Dude..what's the problem? Don't you want to pay for an endless series of ME wars?
Where's your patriotism??
Keith,
As I understand, physical gold is just one of many ways to protect your savings against hyperinflation and collapse of stock and bond markets.
You can play games like gold and silver ETFs, but it's kind of game with derivatives. They will never deliver physical!!! What you'll get back is just worthless piece of paper.
You bet on gold will go up, if so, cash all gains out and then what? Have your paper $$$ again.
US$ collaps will lead to the situation when only commodities will substitute the place of dollar.
What I'm saying that it's going to be time when currencies will be referenced in commodity units ( e.g. $1000 in 1oz of gold, $2000, $3000, etc.) The role of gold will be limited and decreased. I think that commodities like uranium and oil will be more favorable for international trade.
hmmm....if there is a 100 percent consensus on something, isn't this kinda a contrarian indicator?????
I agree with ecbuilder. Buy gold for physical delivery. I just hope that some good economic news comes out and gold tests its lower support of 582. Then I will back up my truck and take another load. The central banks look like they lost some of thier price control ammo. Recently the large sellers on the NY market have quieted down. Silver is also a great buy at the current prices in my opinion.
Tom
Gold will see $250/oz. before it sees $1100. It might spike to $1000 for a day
Place your bets!
"hmmm....if there is a 100 percent consensus on something, isn't it?"
Anon 2,
100% consensus among the sheeple, and the TV pundits, yes. 100% consensus on this blog, I would say no.
Sell when Jim Cramer and Suzie Orman start recommending mining stocks and physical.
Black Gold
Crude Oil Price Hits $70 a Barrel in Asia
AP - Crude oil futures hit $70 a barrel for the first time in seven-and-a-half months Monday, lifted by concerns over declining gasoline stocks in the U.S., supply disruptions in Nigeria and tension over Iran's nuclear program.
Your going to need to sit down for this one...
Few people know this but the IMF and central banks were attempting to forever delink GOLD as money...
That's why they were dumping...
In fact (according to evidence uncovered by WWW.GATA.ORG) all the CB public accounting statements were being cooked by changes in 1996 IMF accounting regs.
The effect was to swap out (trade physical bullion in the central banks of most of the nations in the world with IOUs backed by the IMF (in short a GOLD loan)... then the physical was dumped onto the market.
Hence the reason we got Gibsons Parodox. At any rate, when GATA discovered the global FRAUD and exposed it, Gold was trading around $250/oz... As the evidence was verified; many large funds took notice and started quietly accumulating...
GOLD has been climbing a wall of disbelief for a few years now. The fraud has been exposed, and a sea of UDS floods the world. GOLD will never and I mean never again see US $250/oz.
I started buying at $260 and will continue to buy with the ever inflating fiat currency to protect my monthly savings as I continue to accumulate wealth from running a trade ballance from my business.
When my waiter tells me that he just financed the purchase of his first oz of gold for only $25000.
That's when I consider unloading or at least diversifying my hoard, and not until then. :)
In Italy you can purchase an ounce of gold for $250,000
100% concensus among 3 bond traders - not a big sample folks
You can definately hide from the tax man if you load up bit by bit. I didn't get in the game until it was around 550/oz. You have to get over the day to day fluctuations. I wouldn't go 100% in gold but I'm 20% in it with 10% in physical gold. There are days when I wish I were more in gold.
BTW, I live in one of the few areas in the world where real estate is strong.
Doesnt the price of gold historically suffer in a deflation?
openeyes -- your deflation story might play out if we lived in a different time. The government and Federal Reserve will never allow deflation in the U.S. economy because the pain will affect everybody from Robert Rubin at Citi, to LaQuisha in da hood. The Fed will pump out dollars at whatever rate is needed to stave off deflation. This will surely pis$ off a lot of foreign holders of U.S. debt, but hey that's the part of the deal they signed up for when they loaned us their savings.
I just found out I can buy gold and silver Eagles in my IRA today.
guess what I'm buying soon? not tomorrow; I think profit-takers will drive the price down for a few days. but soon.
I mean that's on top of the coins I already have stashed away... and there'll be more of those in the hidey-hole too.
Keith, here are reporting requirements for gold.
The most interesting (i.e. profitable) part:
Customer sales to dealers of certain precious metals exceeding specific quantities call for reporting to the IRS on 1099B forms. The 1099B forms are similar to other 1099 forms taxpayers commonly receive; the "B" means they have been issued by a business other than a financial entity.
Reportable sales (again, customer sales to dealers) apply to 1-oz Gold Maple Leafs, 1-oz Krugerrands, and 1-oz Mexican Onzas in quantities of twenty-five or more in one transaction. Reporting requirements do not apply to American Gold Eagles, no matter the quantities. Furthermore, reporting requirements do not apply to any fractional ounce gold coins.
Might I suggest either opening a Roth IRA or converting your regular IRA to a Roth. You would pay the tax on it now that you didn't have to pay when you put it in, but from that point on it's tax-free.
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