FSN Interview with Coin Dealer Quoted in ABC article about 1099 Law

[gunDriller]

http://feedproxy.google.com/~r/fsn/~3/Otbuy7p4HE8/fsn2010-0731-3.mp3

one of the better explanations of the law that's come out in the last 2 months, since this provision of the law was first publicized.

Patrick Heller - is that the coin dealer's name ? I'm not sure.

http://abcnews.go.com/Business/gold-coin-dealers-decry-tax-law/story?id=11211611

"Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.

With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect. "


G*d darn, I remembered the guy's name ! ;D

Anyway, Jim Puplava interviews him and he talks more about the nitty-gritty details of Herr Obamacare's 1099 2012 attempted tax law.

[1970 silver art]

Assuming that the 1099 law does not get repealed, then what will probably happen is that premiums on gold and silver bullion will increase. Producing 1099's will be an added cost of doing business with a coin dealer since it will create a larger administrative hassle and coin dealers will probably have to hire an additional employee (or two) to just handle the 1099's. That added administrative cost will be passed down to the gold and silver buyers. I seriously doubt that coin dealers are going to eat this administrative cost of producing 1099's for gold and silver purchases over $600. I think that profit margins for selling bullion are very small to begin with and this could result in putting some small coin dealers out of business unless they sell more numismatic gold and other potentially high profit margin items.

BTW this $600+ = 1099 law is a bullshit law and I hope that it gets repealed.

[gunDriller]

Assuming that the 1099 law does not get repealed, then what will probably happen is that premiums on gold and silver bullion will increase. Producing 1099's will be an added cost of doing business with a coin dealer since it will create a larger administrative hassle and coin dealers will probably have to hire an additional employee (or two) to just handle the 1099's. That added administrative cost will be passed down to the gold and silver buyers. I seriously doubt that coin dealers are going to eat this administrative cost of producing 1099's for gold and silver purchases over $600. I think that profit margins for selling bullion are very small to begin with and this could result in putting some small coin dealers out of business unless they sell more numismatic gold and other potentially high profit margin items.

BTW this $600+ = 1099 law is a bullsh*t law and I hope that it gets repealed.

just look at the decision.

if you had a successful one person coin shop, or a shop that you may have thought about turning over to your kids, that means you have 100 to 1000 ounces of gold, maybe more, and a similar dollar amount of silver. $1 million to $5 million worth of inventory.

if it's all owned free and clear, what is the incentive to continue in business ? why not just stop paying rent, and make an occasional sale to APMex or a larger dealer that embeds the paperwork reporting into their website (i guess this means APMex will have your SSN ? that's scary.)

i think alternative venues for precious metal transactions shall arise.

[1970 silver art]

Assuming that the 1099 law does not get repealed, then what will probably happen is that premiums on gold and silver bullion will increase. Producing 1099's will be an added cost of doing business with a coin dealer since it will create a larger administrative hassle and coin dealers will probably have to hire an additional employee (or two) to just handle the 1099's. That added administrative cost will be passed down to the gold and silver buyers. I seriously doubt that coin dealers are going to eat this administrative cost of producing 1099's for gold and silver purchases over $600. I think that profit margins for selling bullion are very small to begin with and this could result in putting some small coin dealers out of business unless they sell more numismatic gold and other potentially high profit margin items.

BTW this $600+ = 1099 law is a bullsh*t law and I hope that it gets repealed.

just look at the decision.

if you had a successful one person coin shop, or a shop that you may have thought about turning over to your kids, that means you have 100 to 1000 ounces of gold, maybe more, and a similar dollar amount of silver. $1 million to $5 million worth of inventory.

if it's all owned free and clear, what is the incentive to continue in business ? why not just stop paying rent, and make an occasional sale to APMex or a larger dealer that embeds the paperwork reporting into their website (i guess this means APMex will have your SSN ? that's scary.)

i think alternative venues for precious metal transactions shall arise.


There will not be any incentive to continue in business. Any other one-person coin shops will also come to that conclusion and will close up business. That will lead to fewer local coin shop outlets to buy and sell gold and silver.

[gunDriller]

There will not be any incentive to continue in business. Any other one-person coin shops will also come to that conclusion and will close up business. That will lead to fewer local coin shop outlets to buy and sell gold and silver.


so the bottom line is, BHO is the most anti-free-market Presidents in history.

that it took a few $trillion to cover losses from credit derivatives gives some idea of the amount of $ they made "on the way up".

"on the way up" - 1995-2007
"credit crisis" - 2007 to present

i think they made a lot more money on the way up than they lost during the credit crisis.

and that provides an obvious place to look - given the crime involved - in terms of asset seizures, and so on, to make the Main Street banks whole again.

but neither Bush nor Obama were honest enough to do this.

& now we have a law that crushes small business with paperwork.

i'm not sure what it will do to metal prices. i think fewer people will be selling but people will be buying. so i would expect shortages of random-year Krugs, Maples, Eagles (1 ounce and 1/2 ounce).


side-stepping the coin industry, many of the companies in Silicon Valley would not ever have been started if they had the health care expenses that are codified in Obama-care.

Bush & Obama have basically managed to turn the United States into a command economy (centralized, government financed.) of course, a lot of the damage was done before then.

i'm thinking the real free enterprise these days is occurring in countries like Iceland etc.

[The Great Ag]

For what it's worth, this $600 tax law has been on the books for years. Technically, we should all be sending in 1099's to our grocers, gas station, clothing stores. . .etc.

Not sure why we are not?

The Great Ag

[Twisted Titan]

For what it's worth, this $600 tax law has been on the books for years. Technically, we should all be sending in 1099's to our grocers, gas station, clothing stores. . .etc.

Not sure why we are not?

The Great Ag


A Tweak of Famous Stalin qoute is in order.


The Creation of a Law means nothing

The ENFORCEMENT of a law means everything


T

[Phoenix]

so the bottom line is, BHO is the most <s>anti-free-market</s> anti-American Presidents in history.


The Africoon is anti-American because he himself is not an American.

[gunDriller]

so the bottom line is, BHO is the most <s>anti-free-market</s> anti-American Presidents in history.


The Africoon is anti-American because he himself is not an American.


true, but he's participating in a time-honored American tradition.

he credits the Jewish-American community in Chicago with helping him get elected.

his administration is 3/4 Jewish.

his programs could accurately be summarized as Jobs For Jews programs. they added federal money to our local county health agency - most of those new employees were Jewish.

it's not my job to pay for Obama's Jobs for Jews programs.

[Phoenix]

so the bottom line is, BHO is the most <s>anti-free-market</s> anti-American Presidents in history.


The Africoon is anti-American because he himself is not an American.


true, but he's participating in a time-honored American tradition.

he credits the Jewish-American community in Chicago with helping him get elected.

his administration is 3/4 Jewish.

his programs could accurately be summarized as Jobs For Jews programs. they added federal money to our local county health agency - most of those new employees were Jewish.

it's not my job to pay for Obama's Jobs for Jews programs.


This is completely consistent with Obama's anti-American Complete Bolshevization of America plans. Bolshevism was and is Jewish.

[gunDriller]

This is completely consistent with Obama's anti-American Complete Bolshevization of America plans. Bolshevism was and is Jewish.


Rahm Emanuel's father or grandfather - i don't remember which - was a Soviet tax collector.

They have a mental disease that transcends continents.

They think it's our job to pay for their "good ideas" that primarily benefit them - and other Jews.