Monthly Archives: January 2012

Some US States Consider Taxing Bullion, Currency And Coins

Posted on by

Passed in 2007, US House Bill 1151 exempts precious metals, like silver and gold from being subject to taxation. Despite this, many states have taken the matter into their own hands by charging state sales taxes on precious metals and rare coin purchases. Among the states who charge sales taxes on precious metals purchases are Nebraska and Minnesota.

Most recently, South Dakota introduced discussion on a bill that would repeal the 2007 precious metals exemption. Passage was recommended by a study committee, but state legislators defeated the new proposal, largely because they were unable to agree upon the category into which precious metals coins and bullion should be placed. Collectibles are taxed, but commodities are not.

Support for the bill came from the Revenue Department, which estimated additional tax revenues of approximately $32,000 per year.

The bill’s detractors include sellers of precious metals coins and bullion, whose customers would merely purchase their investments from other states or online, where no additional fees are charged. Currently, a six percent tax on gold is greater than the margin made by many precious metals dealers.

http://acn.liveauctioneers.com/index.php/features/collectiblesandpopculture/6414/south-dakota-house-panel-kills-bill-to-tax-coins-currency

Currency Swaps Allow Fed To Covertly Assist European Bailout

Posted on by

Swapping currencies between countries has become commonplace in our global economy. The exchange of one type of currency for another allows one country to pay interest to another at the difference between their current interest rates.

Currency exchanges between the United States and the Europe illustrate how covert bailouts can be accomplished between economies while losing countries hoodwink their citizens. Swap agreements arranged between countries work like this:

The European Central Bank accepts credit from the Fed, and then provides inexpensive money to beleaguered European banks. In turn, these banks use the resulting cheap financing to purchase high-yield bonds from European countries. Voila! European banks make more money, as American taxpayers are left holding the bag, and average citizens are none the wiser.

This technique even eliminates most of the pesky propaganda created by simple loan deals. The financial news excitedly reports the improvement in European credit conditions. Precious metals investors are the only ones who will eventually benefit, as inflation drives their investments to new highs and billions of worthless dollars are added to US balance sheets.

http://goldnewsbullionvault.com/fed_bailout_europe_012620122

Silver Mining

Posted on by

With the price of silver quickly on the rise, many people are looking into mining silver. The act of mining silver dates back to ancient times. During these times, silver was used to financially sustain Greek countries.

Today, there are still silver mining companies to be found. Most of these companies are found in Mexico. Mexico leads the world in silver production. One of the most popular silver mining techniques is called sluicing. Sluicing can be done by expert and novice miners alike. In sluicing, specially designed boxes are set up to collect silver from gravel and other debris.

To begin sluicing, the miner will find a location within a stream bank. They search for areas that have not been mined in several years. After they have scouted the perfect location, they begin setting up their sluicing boxes. The boxes are submerged into the water about half way up the box. To prevent slipping, miners will secure the ends of the box with heavy rocks. Gravel is now ready to be filtered through the sluicing box. The gravel is poured slowly into the area. Dumping gravel to quickly can result in lost silver. As the gravel is sifted through the box, the attached screen will separate any potential gravel from the silver. After the material is collected, miners will carefully pan the debris looking for silver. Although time consuming, sluicing is a great way to mine for silver.

Bullion Coins: Purchasing Silver For Survival

Posted on by

Wise investments can change lives. No matter their investment goals, savvy investors learn to gauge global and individual circumstances to create a portfolio that will provide optimal return on their money.

Precious metals, like silver and gold, are purchased for many reasons. Silver bugs love their bullion because it provides a hedge against inflation, is fundamentally sound in a financial crisis, and has the potential to increase in value over time.

Recent global events have underscored the need to hold precious metals for a possible worst-case scenario. National debt default is the current potential crisis that most precious metals investors fear when they purchase silver and gold for survival purposes. In a worst-case scenario, banking systems fail and people are denied access to their money.

In these cases, precious metals coins can be readily exchanged for goods and services, due to their intrinsic value. Coins for barter are most useful in small fractional-ounce sizes, with no collectible value. During times of extreme crisis, precious metals coins will almost certainly lose any collectible value. Their value will be equal only to the amount of metal that they contain. Additionally, coins for barter during tough times should only bear readable English language markings. These will be the most widely accepted. Silver rounds, or so-called junk silver coins are best for survival investing.

http://www.cmi-gold-silver.com/small-survival-gold-silver-coins.html

Forsaking The Gold Standard: How Governments Devalue Currencies

Posted on by

US president, Franklin Roosevelt set in motion the decline of the dollar in 1933. When Americans were no longer allowed the simple exchange of paper currency for an equal value of precious metal, they should have known they were in trouble. The dollar’s fate was sealed in 1971 when President Nixon decreed that no government could exchange paper for gold. Eventual fiscal inflation was virtually secured.

Prior to gold standard abandonment, paper dollars were considered reserves, since they were backed, and could be converted into gold at a guaranteed price. The immediate effect of dumping the gold standard was that countries who had previously purchased fiat currency for cash reserves, found only paper in their hands. Dollars no longer backed by tangible precious metals could be printed with reckless abandon.

The practical outcome for those who realized the price they would ultimately pay, happened in the late 1960s. A run on US banks occurred, as US currency holders sought to convert soon-to-be worthless dollars into precious metals. Withdrawing backing for fiat currencies amounts to a one-hundred percent government default on the value of money. The government has withdrawn their previous promise to redeem government issued paper.

Modern investors need not speculate as to the value of their precious metals investments, like silver and gold. Historically, no fiat currency system has ever succeeded, when disengaged from the intrinsically valued asset that supports it.

http:www.cmi-gold-silver.co/gold-standard-inflation-fiat-money.html