Hidden Gold Taxes: The Secret Weapon Of Bankrupt Governments

[Silver Rocket Bitches!]

Overview

What if there was a hidden tax that most gold and silver investors were simply unaware of? A tax where the government would take a big chunk of your starting net worth if gold went to $2,000 an ounce, leaving you poorer than you started with? A tax that rises with inflation, so that $100,000 an ounce gold could cripple your net worth?

This tax already exists, as we will demonstrate in step by step detail using three easy to follow examples. All but a few investors are unaware of this tax and its devastating implications. Simply put, when we assume that gold acts as "real money" and perfectly maintains its purchasing power during rapid inflation, then the higher that the rate of inflation rises, the higher the percentage of the average gold investor's starting net worth that ends up belonging to the government.

Knowledge is power. Conversely, a time of severe monetary crisis could be the most dangerous time in our lifetimes to be uninformed. Investors who are unaware of this profoundly unfair tax, or who choose to ignore it, necessarily become helpless victims of the government. When investors become aware of perhaps the number one danger to long term precious metals investment, and adapt their strategies to deal with this danger - then they can unlock the true investment power of gold during times of currency crisis. And turn potential $10,000 or $100,000 an ounce gold prices into the once-in-several-generation wealth creation opportunities that they should be.

$2,000 An Ounce Gold

In the first step of our illustration, we will consider a situation and how it affects the life savings of two investors. The situation is that 50% of the value of the dollar gets destroyed by inflation. This is not a radical assumption, as with modern symbolic or fiat currencies the value of money is always destroyed by inflation. The only question is one of speed, and if we look at the United States, 80% of the value of the dollar was destroyed by inflation between 1972 and 2007 as measured by official government statistics. For this illustration we will assume there is a smaller loss in value of the dollar, but that it happens much faster - because the US is in much worse shape right now than it was in 1972 in some key ways.

Kate is well educated, keeps up with the newspapers, and is concerned that the global financial crisis may get worse. So she liquidates her riskier investments, and to play it "safe", moves her money into a $100,000 money market account.

For our illustration we will assume Kate's money is safe - but the value of her money is not protected. Inflation destroys 50% of the value of the dollar. Kate still has her full $100,000, but it will now only buy what $50,000 used to. Kate has lost 50% of the value of her investments to inflation (for simplicity, we're leaving out assumptions on interim money market interest payments).

Jack also reads the mainstream media, but reads more widely as well, and believes that high inflation is the logical outcome of the financial crisis. Jack therefore takes his $100,000 and buys 100 ounces of gold at $1,000 an ounce (using round numbers for ease of illustration).

We will assume that gold performs exactly like many investors hope it will. That is, it acts like "real" money and maintains its purchasing power in inflation-adjusted terms. Now, if the dollar is only worth half of what it used to be, and gold does maintain its purchasing power, there is only one way for gold to do so, and that is for gold to sell for twice the number of dollars per ounce than it did before.

Therefore, gold goes from $1,000 an ounce to $2,000 an ounce. Those dollars are only worth fifty cents (in today's terms), so we multiply $2,000 times 50%, and we end up with $1,000. Jack's 100 ounces of gold at $2,000 each will buy exactly same amount of real consumption, of real goods and services, as gold used to buy for him at $1,000 an ounce. Some would say that this is an example of a perfectly successful inflation hedge, where gold has performed exactly like it is supposed to.

more at http://www.safehaven.com/article/17108/hidden-gold-taxes-the-secret-weapon-of-bankrupt-governments

[midnight rambler]

Moral of the story: those who willingly line up for National Sheep Shearing Day every April 15th deserve to be sheared.

[Ponce]

Gold would go into the underground market and doubled from $2,000 to $4,000 OR MORE.

"If you don't hold it, you don't own it"... Ponce

[Low Pan]

list of coins "supposedly" considered Investment grade and not subject to the VAT (Value Added Tax) applied in Europe and being mulled over by the US:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:291:0021:0033:EN:PDF

[Ares]

That's what the black market is for.

[Twisted Titan]

We don't pay taxes................ Only the little people pay taxes

Leona Helmsley

[osoab]

That's what the black market is for.


I was speaking to someone who deals with bullion dealers in Chicago. They said at least half would go black market if the 600 dollar reporting requirement was not disposed of. They also said the cops were behind the bullion dealers and wouldn't be a hassle to underground businesses.

[Twisted Titan]

That's what the black market is for.



DING!! DING!!! DING!!! DING!!! DING!!!! DING!!! DING!!! DING!!!


He just laid bare how out of control gubbermint is yet still he wants you to comply with it???


He is either a fool or a shill ( I think both)

[Ares]

That's what the black market is for.


I was speaking to someone who deals with bullion dealers in Chicago. They said at least half would go black market if the 600 dollar reporting requirement was not disposed of. They also said the cops were behind the bullion dealers and wouldn't be a hassle to underground businesses.


It's not the cops the bullion dealers have to worry about it those UNACCOUNTABLE IRS agents.

[Silver Shield]

If I did not lose my holdings to a series of unfortunate accidents I would hold them until the Fed dissolved , the IRS disbanded, and the government begged for investors with real capital to resart the American economy.

At which point I wold not sell any of my bullion to owe any taxes.

I would use the bullion as collateral on income producing properties.

But that is just because I have thought this much further than most.

Nothing to be scared about, when you know the ending.

[Twisted Titan]

QFT SS

You NEVER use your horde to pay a debt ( save for a few personal ones all public obligation should be repudiated)

You use your horde as LEVERAGE to increase your holdings or to gain FAVORABLE TERMS where applicable and make STRATEGIC ACQUISTIONS when presented.






Those of us who hold physical precious metals through careful manuvering and being observant of the "Sprit of The Times" will have the abilty to change the history of their family Bloodlines.


Things have never been more serious and the stakes so high.

We must Get ready to take control or lick the boots of those who do.

[tater]

If I did not lose my holdings to a series of unfortunate accidents I would hold them until the Fed dissolved , the IRS disbanded, and the government begged for investors with real capital to resart the American economy.

At which point I wold not sell any of my bullion to owe any taxes.

I would use the bullion as collateral on income producing properties.

But that is just because I have thought this much further than most.

Nothing to be scared about, when you know the ending.




SS, I really like the thought of using bullion as collateral. Question though, wouldn't the bank have to hold the bullion as it is now collateral? If the bank is holding the bullion are you OK with that since it's probably a local bank 'cause the FED is now defunct?

I'm asking because...well, you know...If you don't hold it you don't own it? Thanks in advance.

[Twisted Titan]

If I did not lose my holdings to a series of unfortunate accidents I would hold them until the Fed dissolved , the IRS disbanded, and the government begged for investors with real capital to resart the American economy.

At which point I wold not sell any of my bullion to owe any taxes.

I would use the bullion as collateral on income producing properties.

But that is just because I have thought this much further than most.

Nothing to be scared about, when you know the ending.




SS, I really like the thought of using bullion as collateral. Question though, wouldn't the bank have to hold the bullion as it is now collateral? If the bank is holding the bullion are you OK with that since it's probably a local bank 'cause the FED is now defunct?

I'm asking because...well, you know...If you don't hold it you don't own it? Thanks in advance.




Who hell is talking about a third party holding the asset???

You didnt get the top of the scrap heap by allowing anybody to hold your tangibles

What you do is become the banker yourself what I mean specifically is that YOU WILL BE THE REMITTER OF PAPER SLIPS IN LEIU OF THE ACTUALL ASSET.


All you have to do is have the blessing of the local Godfathers and you will get free reign to do as you will.

[tater]

If I did not lose my holdings to a series of unfortunate accidents I would hold them until the Fed dissolved , the IRS disbanded, and the government begged for investors with real capital to resart the American economy.

At which point I wold not sell any of my bullion to owe any taxes.

I would use the bullion as collateral on income producing properties.

But that is just because I have thought this much further than most.

Nothing to be scared about, when you know the ending.




SS, I really like the thought of using bullion as collateral. Question though, wouldn't the bank have to hold the bullion as it is now collateral? If the bank is holding the bullion are you OK with that since it's probably a local bank 'cause the FED is now defunct?

I'm asking because...well, you know...If you don't hold it you don't own it? Thanks in advance.




Who hell is talking about a third party holding the asset???

You didnt get the top of the scrap heap by allowing anybody to hold your tangibles

What you do is become the banker yourself what I mean specifically is that YOU WILL BE THE REMITTER OF PAPER SLIPS IN LEIU OF THE ACTUALL ASSET.


All you have to do is have the blessing of the local Godfathers and you will get free reign to do as you will.


Maybe the word "collateral" threw me off and that's why I asked the questions?

Now if I'm the banker, wouldn't the bullion then be considered the reserve? Also if I'm remitting paper should I be concerned with bank runs? Not being snarky here either just asking. BTW if I got the bullion, I will be the local Godfather.


http://en.wikipedia.org/wiki/Collateral_(finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.[1][2] The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation.If a borrower does default on a loan (due to insolvency or other event), that borrower forfeits (gives up) the property pledged as collateral - and the lender then becomes the owner of the collateral. In a typical mortgage loan transaction, for instance, the real estate being acquired with the help of the loan serves as collateral. Should the buyer fail to pay the loan under the mortgage loan agreement, the ownership of the real estate is transferred to the bank. The bank uses a legal process called foreclosure to obtain real estate from a borrower who defaults on a mortgage...

[FunnyMoney]

BTW if I got the bullion, I will be the local Godfather.



I think what TA is trying to say is that you came to the metals market because you didn't trust anybody else because all those other markets are paper markets and if not already fully corrupted, definately fully corruptable. Now since you came to your senses and to honesty long ago, they basically are now going to trust you or they can go packing. Last time I talked to a banker about taking out a possible loan in satan , I mean FRN money, they were extremely willing to increase my net worth calculation based on the gold I told them about.

Matter of fact, your right, I remember now, once I told him, for the entire rest of the meeting he did treat me like the local Godfather!

[tater]

BTW if I got the bullion, I will be the local Godfather.



I think what TA is trying to say is that you came to the metals market because you didn't trust anybody else because all those other markets are paper markets and if not already fully corrupted, definately fully corruptable. Now since you came to your senses and to honesty long ago, they basically are now going to trust you or they can go packing. Last time I talked to a banker about taking out a possible loan in satan , I mean FRN money, they were extremely willing to increase my net worth calculation based on the gold I told them about.

Matter of fact, your right, I remember now, once I told him, for the entire rest of the meeting he did treat me like the local Godfather!


Those are the reasons I came to my senses and honesty, not as long ago as I should've but I did finally arrive. I appreciate your real life story with the (spit) banker and their infatuation with your stack. Still the system is in a functional (albeit terminal condition) state. I was just wandering how it might work in a post FED/fiat world. A clearing house, bank with gold/silver reserves, metals circulating as currency? Didn't mean to derail this thread. |--0--|

I'm sure when TPTB start raping and pillaging the gold bugs the black market will be in full swing. The Godfather postition looks better and better.

[mick silver]

i have no silver are gold so how can you tax it ................ never tell what you have

[mike88]

capital will migrate to where it is valued. it will flee jurisdictions where it is destroyed. russian peasants leaving the soviet union would have their teeth pulled and dentures made of precious metal in order to kepp their families wealth out of the gov. hands. the metals have a 5000 year history, criminal governments stealing under color of law come and go. the "masters of the universe" in positions of political power are so arrogant they cannot comprehend the resentment of citizens getting their pocket picked. citizens will put up with it to a point, as they can see some return on their taxes[roads,postal system,standard weight and measure nationwide] . as the greed of the ruling class increases to where your children starve while the pols jet around in luxury, the underground markets flourish. the greed of the rulers becomes their undoing as the desire for power over others corrupts them completely. it dawns on citizens that they do not need a ruler telling them what to do and charging them for it.

[beefsteak]

..... under color of law.....


the most meaningful thing you said, Mike. Obviously, you "get it."

Nice to shake your hand, buddy!
beefsteak

[Twisted Titan]

BTW if I got the bullion, I will be the local Godfather.



I think what TA is trying to say is that you came to the metals market because you didn't trust anybody else because all those other markets are paper markets and if not already fully corrupted, definately fully corruptable. Now since you came to your senses and to honesty long ago, they basically are now going to trust you or they can go packing. Last time I talked to a banker about taking out a possible loan in satan , I mean FRN money, they were extremely willing to increase my net worth calculation based on the gold I told them about.


Matter of fact, your right, I remember now, once I told him, for the entire rest of the meeting he did treat me like the local Godfather!



See what I mean???

Do you see how you can stack the odds in your favor???

The Banker who writes the loan 99.9999% dosent understand the mechanics of why he is broke and you are rich.

The most I will give him credit for is trying to be a better salesman by attempting to putt out more flashy meathooks to try and snag you with.

This is where physical Gold and Silver pay out in spades it makes people minds turn into mush and they are much more maleable.

You can get this fool to give you unheard of perks and favorable terms to increase your postion and holdings to the rank of WarLord.

Is this fair?? NO

Is life fair? NO

Then you better get with the program and do what you have to do to make sure you will be a shotcaller in the future.


T