In just the past week, lawmakers in Idaho and Arizona have passed bills removing “Capital Gains Taxes” from gold and silver coins and bars.
THIS IS A BIG DEAL:

 

From SRSRocco:

Normally, when individuals sell gold or silver, they must pay capital gains on any increase on the value of their precious metals investments.  However, gold and silver are really not investments per say, rather they perform as real money.

Thus, the lawmakers in Idaho and Arizona realize their citizens shouldn’t have to pay taxes on their gold and silver holdings because they have increased in value due to the debasement of the U.S. Dollar by loose Federal Reserve monetary policies.

According to the article, Arizona State Senate Committee Passes Bill To Treat Gold As Money, Remove Capital Gains Tax:

Today, an Arizona Senate Committee passed a bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency. Final approval of the legislation would help undermine the Federal Reserve’s monopoly on money.

Former US Rep. Ron Paul testified today in the Senate Finance Committee in support of House Bill 2014 (HB2014). The legislation, which previously passed the state House by a 35-24 vote, would eliminate state capital gains taxes on income “derived from the exchange of one kind of legal tender for another kind of legal tender.” The bill defines legal tender as “a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.” “Specie” means coins having precious metal content.

In effect, passage of the bill would, as Paul noted, “legalize competition in a Constitutional fashion.”

This Arizona House Bill to remove capital gains taxes on gold and silver is a BIG STEP forward to reintroduce precious metals back as their rightful role as REAL MONEY or HIGH QUALITY STORES OF VALUE. 

While the Arizona State Senate Committee passed a bill last week to remove capital gains on gold and silver, Idaho did the same thing just yesterday.  According to the article, Idaho House Of Representatives Votes Overwhelmingly To Remove Income Taxation From Precious Metals:

Boise, Idaho (March 14, 2017) – By an overwhelming 56-13 margin, the Idaho House of Representatives today voted to end all Idaho taxation on precious metals, e.g. gold and silver coins and bars.

Bill sponsor Representative Mike Moyle (R) and the entire Republican caucus voted for the measure.  If the Republican-controlled Idaho Senate follows suit and Governor Butch Otter (R) signs the bill, Idaho citizens will better be able to use gold and silver as a form of savings which protects against ongoing devaluation of America’s currency.

So, we now have two states within the week that have passed bills removing capital gains tax on gold and silver.  However, Utah was the first state in 80 years to pass a bill back in 2011 that made gold and silver legal tender once again.  Thus, individuals in Utah are legal to use gold and silver coin to pay either taxes or for goods and services if both parties agree.

But, what is even more interesting is that Utah just recently (Jan 27th 2017) introduced a bill for a State Gold Depository.  The article, Utah Bill Sets Stage For State Gold Depository, Further Encourages The Use Of Metals As Money, stated the following:

A bill introduced in the Utah legislature would build on the state’s Legal Tender Act, creating a foundation for further action to encourage the use of gold and silver as money, and take another step toward breaking the Federal Reserve’s monopoly on money.

Rep. Ken Ivory (R-West Jordan) introduced House Bill 224 (HB224) on Jan. 27. The legislation would add several provisions to state law designed to encourage the use of gold and silver as legal tender. Passage would set the stage for expansion of gold repositories in the state and authorize further study on several sound money policies.

Specifically, HB224 would authorize the investment of public funds in specie legal tender held in a commercial specie repository.

Here we now have a third state encouraging gold and silver to be used a real money.  Not only does this bill help to reintroduce gold and silver as sound money, it also plans to set the stage for setting up depositories across the state to house its citizens precious metals holdings.  THIS IS A BIG DEAL.

While these are only three states pushing for gold and silver to be used as real money once again, I believe it is just setting the stage for more states to follow suit as the U.S. Dollar’s value continues to evaporate due to massive monetary printing and increased public debt.

So, as the Federal Reserve meets today to raise interest rates or the U.S. Government gets ready to increase the debt ceiling above $20 trillion, several states are preparing for a time when the U.S. Dollar is no longer is a viable form of money. 

Americans better get prepared for what’s coming.  While the precious metals are still being valued in a manipulated highly leveraged gold and silver paper trading market, this is not a system that will last for much longer.  When the markets finally crack under the massive amount of Debt and Derivatives, there will be a mash rush of investors into gold and silver.

Unfortunately, when this occurs, there will be very little physical gold and silver to go around… only a MUCH HIGHER PRICES.

  1. U.S. Dollar Index (DXY)
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    99.74
    Folks ! with China being the number one supplier of Ag Silver ,and Mexico being the second and both pissed at the ‘Donald” our prez  about the thought of  tariffs we should be wearing Sunglasses cause our future looks so bright. Ag @ $1000 per oz .

  2. an ounce of Cocaine  is usually around 1,000-1,400 bucks. If you buy 1/8 of a gram, usually called “8ball”, it is usually around 120-150 bucks. If you buy 1/4 of a gram, it is usually 250-350 bucks.

     

    ounce of OG Kush about $400-450

    ounce of Ag Silver $17.50 . RIDICULOUSLY INSANE

  3. Too soon to celebrate in Arizona. It (HB 2014) passed the House and narrowly (4-3) passed one of two assigned committees in the Senate. It goes to the Rules committee next (usually a formality, but it’s not yet on their agenda), but then has to have a reading in front of the full senate. Then, if passed, it will go to the Governor to be signed into law, vetoed or sometimes the Governor will take no action which causes the measure to become law after 90(?) days.

  4. Basing income to a depreciation roll of fiat toilet paper is clear theft.  Silver buys the same goods it bought 100 years past.  Buying power has not changed.  Yet the silver dollar would now have a $16 ‘profit’ subject to tax in USA and I assume other Western countries I did not visit.  Citizens are taxed for not losing their wealth

    • I wouldn’t be so dismissive if you live in the U.S.  This could be a big deal.

       

      Lets connect a few dots.  Should gold and silver moon-shot in a time of financial system crisis I would expect the gov’t would levy a windfall profits tax on the capital gain.  Dealers would be required to 1099 the IRS and collect backup withholding tax at the time of transaction.  The exception will be U.S. Mint legal tender because that is what TPTB use to preserve their own wealth and they will craft a legal loophole to avoid the capital gains tax for themselves that we can also take advantage of if we are properly prepared.  Generic bullion owners are going to be in for a rude awaking I fear.

       

      I find it curious that currently U.S. Mint gold and silver coins are exempt from tax reporting requirements.  Generic bullion is not exempt.  Why?  I believe it’s because of what I just said.   Gains on U.S. Mint legal tender will be tax free because they are “money”.  Generic bullion will be subject to a windfall profit tax.  If you have a significant quantity of physical gold and silver you’ll need someone with significant resourses (like a dealer) to buy your PM’s.  Private citizens aren’t going to have any “money”.  There may even be a law passed prohibiting private transactions.  In a time of crisis the current landscape could dramatically change.  That’s why I think ASE’s and AGE’s are worth the extra premium.

  5. In the UK we are way ahead of the game.  Legal tender gold and silver coins have no CGT or VAT on gold coins or any other taxes on buy or sell.  VAT on silver coin can be avoided either by importing (e.g. Silver_To_Go or GoldCore) or buying second hand from some bullion dealers.

    It is MOST IMPORTANT to AVOID CGT in an HYPERINFLATIONARY ENVIRONMENT as you can actually make a loss on PMs as the bankster crooks pretend you have made a capital gain when they inflate the money supply.  As we are moving in this direction, faster after Article 50 gets into gear (according to some), buy sovereigns or britannias or be taxed into oblivion.  For example,  If you have £1000 of gold and this rises to £11,000 in “value” as a result of money printing then you could pay £2,900 in CGT (on bars) as a result when you sell.  All else being equal you have made a real terms loss on selling of £263.64 in old money terms (i.e. when the gold was worth £1000) or 26.36% loss.  Hope that’s right, I’m tired.

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