06/08/10 Baltimore, Maryland – Another day, another all-time high:
Chalk up yet another record for gold today, having just eked by its previous record of $1,249 an ounce. You know the story by now: The EU debt crisis of today, the US debt crisis of tomorrow and an uncertain stock market… All good for good old gold.
But is it too late to buy some more?
“My short answer is no,” wrote Chris Mayer in yesterday’s Daily Reckoning, “Gold $7,000.“
“Gold isn’t is always a good investment… If you bought gold in the 1980s and 1990s, your return was abysmal. So as with all assets, there are times when gold is a really good buy and there are times when it is not. Sounds obvious, but many people seem to want to think that gold is an exception to the order of things. It isn’t…
“But frankly, the gold market is set up perfectly these days. You couldn’t design it better. Bad stuff is happening — see the crisis in Europe. And you can surely bet more bad stuff will happen, given all the debt and leverage that still remains in the system. Even if you don’t know exactly what will happen or when it will happen, you know a monetary crisis is good for gold.
“As an added bonus, gold has a track record, which will attract fans soon enough. And when it does, it can’t really accommodate many buyers, because the market is small. This means the chances of the gold price spiking upward are pretty good. It’s like being in the lifeboat business on the Titanic. No price will seem too high!”
Right on cue – as the value of gold comes back into the spotlight – rumors abound that global governments are mulling some sort of tax on gold profits.
“A special tax on private gold owners’ gains may soon appeal pretty much everywhere,” friend of Agora Adrian Ash wrote recently. “Longtime holders were early and right in spotting the financial crisis ahead – and nobody likes a smart arse, remember. Even more recent buyers are also showing notable gains, and most notably against the fast-sickening euro, too… German and Greek politicians must now be wondering why Europe’s central bank gold sales ended without having a gold tax ready and waiting to keep milking the metal.”
And this, from Alen Mattich of The Wall Street Journal:
“Any assets that can be valued relatively easily and any income flows, whatever their source, that governments can get their hands on will be a temptation for the taxman.
“Is, say, a levy on gold – everybody’s favorite safe haven – impossible?”
Nope.
No official word on all this yet, and of course, this won’t happen without a big fight. But our government has done worse to gold owners before…
Addison Wiggin
for The Daily Reckoning
Addison Wiggin
Addison Wiggin is the executive publisher of Agora Financial, LLC, a fiercely independent economic forecasting and financial research firm. He’s the creator and editorial director of Agora Financial’s daily 5 Min. Forecast and editorial director of The Daily Reckoning. Wiggin is the founder of Agora Entertainment, executive producer and co-writer of I.O.U.S.A., which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival, the 2009 Critics Choice Award for Best Documentary Feature, and was also shortlisted for a 2009 Academy Award. He is the author of the companion book of the film I.O.U.S.A.and his second edition of The Demise of the Dollar… and Why it’s Even Better for Your Investments was just fully revised and updated. Wiggin is a three-time New York Times best-selling author whose work has been recognized by The New York Times Magazine, The Economist, Worth, The New York Times, The Washington Post as well as major network news programs. He also co-authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner.
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Good. Now I am confused. Aren’t investment profits taxed anyway?
Like .99 cents is so much lower than $1.00. Really Pathetic
a tax gold on gold is the most desperate of acts by an illegitimate desperate regime. of course that is precisely what the usa is…
Well then, just make sure you buy raw gold, as in gold nuggets or gold dust, it is classed as raw material until it is refined and made in to gold bars. Basically raw gold is classified as “dirt” until the refining and assay process is complete. Neat huh, for people who do not want to get taxed? Best Regards, Canada North
Dear buyers,
I need urgent advice on what to do at this moment. My father die 9 mount ago, he was the leader of mabrukka local miners union in Sierra Leone West Africa. His death was very painful to me &am d only child.
Last 10 months b4 his death, he called me advising me to be very careful with his blood brothers telling me that they have diabolically poison him, then he took me to the evil mountain inside the village near the iroka tree.
He dig the ground & show me a bag of raw Gold, telling me that any time he die after one year & two months that I should look for international business man to buy the Gold from me. He warns me not to tell any of his brother or relations about the gold he shows me or to tell them even he is dead. Now his gone, & I need advise from any interested buyers.
Thanks. Prince Ibrahim
Email: ibrahim123.sl@gmail.com
Mobile +23233964264 or +23276490538
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