Gold & the Economy - A non partisan lesson in history

[HHGT]

If you bought Gold 2 years ago, you had some great insight. And when I say Gold I don't mean paper notes that says you own Gold, I'm talking about the real thing.

A $500 PER OUNCE RUN-UP wow!!!!

http://www.lewrockwell.com/north/north875.html

 

[BlackICE]

I like the paper notes "GLD"! The transaction costs on the real stuff is TOO HIGH. The gains real thing in any meaningful amounts are just as taxable as the paper stuff. Note the new "heath care bill" has a requirement of issuing a 1099 for all transactions over $500! You can run, but you cannot hide from the IRS! Also the paper stuff is easily traded and can be hedged with options at low bid/ask spreads with good volume.

 

[2112]

You can run, but you cannot hide from the IRS!

Especially when they successfully eliminate cash as our "currency". :frown
.

 

[HHGT]

I like the paper notes "GLD"! The transaction costs on the real stuff is TOO HIGH. The gains real thing in any meaningful amounts are just as taxable as the paper stuff. Note the new "heath care bill" has a requirement of issuing a 1099 for all transactions over $500! You can run, but you cannot hide from the IRS! Also the paper stuff is easily traded and can be hedged with options at low bid/ask spreads with good volume.

Imagine the paperwork one corporate entity has to generate to another corporate entity. Ford will now have to issue 1099s in addition to Purchase Orders to all its suppliers, including nuts, bolts, mops, toilet paper etc.

 

[BlackICE]

Especially when they successfully eliminate cash as our "currency". :frown
.

I forgot that some can hide for a little while, like Tim Geithner, and C. Rangel, or "Blade."

 

[Fast Freddy]

I like the paper notes "GLD"! The transaction costs on the real stuff is TOO HIGH. The gains real thing in any meaningful amounts are just as taxable as the paper stuff. Note the new "heath care bill" has a requirement of issuing a 1099 for all transactions over $500! You can run, but you cannot hide from the IRS! Also the paper stuff is easily traded and can be hedged with options at low bid/ask spreads with good volume.

good luck taxing my pamp suisse gold bars or gold Mexican Libertads, Onzas and Pesos that i buy and sell in Mexico :biggrin i can still carry $10,000 in cash or Gold across the border either way with no paperwork :lol

also look for lots of Gold dealers to set up shop in Canada where you can buy and sell your Gold through insured mail to and from your house in America.

 

[Kayvan]

I remember the run up in '79....if you bought then, even with todays run up & inflation you still lost money...

 

[dbackg]

+1 Freddy.

Set up multiple corporations/LLC's.

 

[S592R]

when looking into medals the only medal that has bucked the rise is silver .. staying largely stagnant. Why? due to inside manipulation. Recently an insider leaked information on this, offered it to regulators and then had an attempt on his (and family's) life. A driver of another car rammed them, then in the most heavily camera ladened city in the world (london) ran with police and police helos in pursuit. The driver was arrested, taken to scottland yard ... where they "lost track of him". Not to sound like a nut but this story has been verified.

Personally, i would not own options on goldor gold certificates as paper has no value and both are 100 to 1 over sold. meaning try to redeem it and wait in line with the other 99 to see if you get it. If anyone doubts these statements email me and I can/will send you the reports and testimony transcripts.

Hard assets in possession are the only true hedge when a currency collapses. Have seen it first hand back in the day (and those of you who know me know I HATE that phrase)

And for the record, I am off my meds and just got a full release from the DR. post accident. lol

 

[BlackICE]

Gold paper will be redeemable at the current market rates unless the government or financial system completely collapses. In the case of hyper-inflation gold or gold paper can be redeemed, but the the cap gains rate on the "gains" will eat up much of the value. No real gains, just inflation adjustments. So the after tax return will be negative!

Now if the government collapses, I want to hold lead and copper jacketed lead, not gold! I always keep a few hundred pounds of that stuff, but have less than a pound of physical gold.

 

[HHGT]

Gold paper will be redeemable at the current market rates unless the government or financial system completely collapses. In the case of hyper-inflation gold or gold paper can be redeemed, but the the cap gains rate on the "gains" will eat up much of the value. No real gains, just inflation adjustments. So the after tax return will be negative!

Now if the government collapses, I want to hold lead and copper jacketed lead, not gold! I always keep a few hundred pounds of that stuff, but have less than a pound of physical gold.

Actually I read an article on the stability of the financial institutions issuing the paper and its not pretty - I'll try to find it. They claim a financial potential collapse of a different sort based on intrinsically complex financial statements the institutions provide that are unregulated. Remember the mortgage melt-down and the toxic assets? The fall of this world leading economy will continue in part will be due to the complex books financial institutions mock up, at least ion my humble opinion. I doubt the Chinese government will ever be deviously creative with their books as the west has done for years. Their assets are real and growing.

 

[FENZO]

Now if the government collapses, I want to hold lead and copper jacketed lead, not gold!..........:rofl

+1

 

[BlackICE]

Actually I read an article on the stability of the financial institutions issuing the paper and its not pretty - I'll try to find it. They claim a financial potential collapse of a different sort based on intrinsically complex financial statements the institutions provide that are unregulated. Remember the mortgage melt-down and the toxic assets? The fall of this world leading economy will continue in part will be due to the complex books financial institutions mock up, at least ion my humble opinion. I doubt the Chinese government will ever be deviously creative with their books as the west has done for years. Their assets are real and growing.

If the world Governments didn't do the bailout, IMO the world would of had a financial meltdown, where access to assets held by institutions would be difficult, slow or non-existent. As bad as the Fed's accounting practices are, I think the Chinese bookkeeping is worst. Now I don't see how holding physical gold (PG) to hedge for against a meltdown is really viable.

Holding PG without holding lead, it will be taken away.
Long term PG is a non-performing asset adjusted for inflation and taxes.

If you really worry about a meltdown, you should stock up on LEAD and projectile accelerators!

 

[HHGT]

If you really worry about a meltdown, you should stock up on LEAD and projectile accelerators!

I started while I was in AZ last week. read my other thread.

 

[S592R]

with so many people stocking up on ammo. please allow me to remind you all to stock up on batteries and battery chargers for all your holographic optics, lasers and lights. I am reminding you of this since last week I did a range day and every battery was DEAD. so we went full iron sites. can't tell you how safe it would have been to stand in front of the paper. lol. fortunately after about 25 rounds the students were hitting paper people pretty good without all that electronic stuff.

500 rounds a month will help you make that one stress filled shot one day ... and I hope that day never comes. also if you want to find out what its like to be in a fire fight (from the giving end). Do a four clip drill. 25 push ups. then shoot a clip, 25 jumping jacks, then shoot a clip, repeat. do drill in 3 minutes or less with NO REST BETWEEN CLIPS. use four different targets from a distance of no further than 20 feet. I bet the results will shock you. in an xd40 thats 48 shots. first time students usually only hit the paper 12 times and the "target" only twice. the best I have ever gotten was 40 in the 5 ring and I do this drill every time I am on the hand gun range. its hits all the basics and shows you what its like to shoot when your adrenaline is screaming.