Why not hold all long term savings in gold?

[karim0028]

So, ive been thinking lately that in the western economic world the way govts/central banks seem to work is by having a gradual continual inflation target... In other words; wreck the currency slowly by ~ 2-3%/yr....

What is the incentive to ever hold currency? Would holding long term savings (not speculative, not needed for day to day money) in gold ever be a bad idea (assuming you didnt buy at the top in 1981)? For the last several years the interest rate on any savings account has been practically worthless....

Can some one shed more light on this topic?

[metalman]

Re: Why not hold all long term savings in gold?

So, ive been thinking lately that in the western economic world the way govts/central banks seem to work is by having a gradual continual inflation target... In other words; wreck the currency slowly by ~ 2-3%/yr....

What is the incentive to ever hold currency? Would holding long term savings (not speculative, not needed for day to day money) in gold ever be a bad idea (assuming you didnt buy at the top in 1981)? For the last several years the interest rate on any savings account has been practically worthless....

Can some one shed more light on this topic?

itulip's warned for years gov't may tax the crap out of gold... here in the usa they already have. cap gains on even gold etfs are subject to a 'collectibles' tax rate vs regular cap gains for oil, equity & all other etfs. what if they raise the tax on gold sales to 50%?

insodoing they will create a gigantic black market. do you want all of your savings in an asset that may some day only be liquid in a black market?

[jtabeb]

Re: Why not hold all long term savings in gold?

itulip's warned for years gov't may tax the crap out of gold... here in the usa they already have. cap gains on even gold etfs are subject to a 'collectibles' tax rate vs regular cap gains for oil, equity & all other etfs. what if they raise the tax on gold sales to 50%?

insodoing they will create a gigantic black market. do you want all of your savings in an asset that may some day only be liquid in a black market?

That's why we should all move to NZ!


Quote of our time:

"you gotta give people hope"

Harvey Milk

Besides, all that gov stuff is crap.

Do you think that if you were in Nazi Germany you would do the "legal" thing and turn in your neighbor who was Jewish? If so, than don't buy gold. If you would resist and do all that you could to prevent them from coming to harm, then congrats, YOU have the character required of a Physical Gold buyer.

Just because your GOVERNMENT says it's right, moral, or legal, DOES NOT MAKE IT SO.

It is YOUR MORAL duty to resist as best as you can, otherwise, who really gives a shit if we are so wretched and weak and spineless that we will not stand up for our inalienable rights.

That's when I leave this country. When the rest of my countrymen don't think it's worth fighting for and give up.

If there is no hope for the United States, if we can't do better and be better, then who GIVES A FLIPPING SH!T what happens. Might as well just hang-up the towel and keep munching on your solient green.

Yes, I do ALL MY LONG TERM SAVINGS IN PHYSICAL PM'S, and would recommend it to everyone that is not inclined to sell their Jewish neighbor in hiding to the gestapo.

Yes it IS that simple. Goverments do bad things when we let them. Is there a cost, always. Should you always chose the pen and then the sword (if NO other option is available) YES!

There are many colors in the rainbow and many shades of grey. What is going on in our financial system doesn't fit anywhere in that continuium. It is plainly and simply, WRONG!

[tastymannatees]

Re: Why not hold all long term savings in gold?

They are going to tax the poop out of everything IMO. Energy? Cap and Trade anyone? how about just ordinary income? Inheritance? health care? They do not have to target gold specifically,no real need to do so when they tax the air you breathe.

My guess it will be like the 30's where they ended up with 4,000 tax leagues and most of the tax schemes were repealed after a couple years.

[Starving Steve]

Re: Why not hold all long term savings in gold?

So, ive been thinking lately that in the western economic world the way govts/central banks seem to work is by having a gradual continual inflation target... In other words; wreck the currency slowly by ~ 2-3%/yr....

What is the incentive to ever hold currency? Would holding long term savings (not speculative, not needed for day to day money) in gold ever be a bad idea (assuming you didnt buy at the top in 1981)? For the last several years the interest rate on any savings account has been practically worthless....

Can some one shed more light on this topic?

I put-away gradually, thru the years, gold coins------NOT COLLECTOR's ITEMS IN GOLD----but collectable gold coins at all different prices, but ALL based upon gold value and NOTHING more. I also saved U.S. old silver dollars for their silver value, NOT for their collector's value. I also have Grand Baroque silverware in new condition for its silver value, NOT for collector's value. I also have an 18K gold solid giant hunters-case pocket watch for its melt value, NOT for its antique value.

I put-away all these things thru time, slowly and on all different gold/silver markets. They have turned-out to be the best of the best of the very best hedges against Alan Greenspan and Ben Bernanke's policies. ( They are putz-proof, and you all know what I mean by that. )

I also have thousands of dollars of I-bonds from the U.S. Federal Reserve Bank. They keep pace with inflation, slooooooooooowly and PASSIVELY, just the way I like them to hedge the risk of inflation. And they just sleep quietly in my safe deposit box.

My home in East Sooke, British Columbia is also a passive long-term investment.

Markets come and go, up and down like a whore's drawers, but the strategy is always the same: invest over the LONG-TERM, slowly and prudently.

My stoxx are in atomic power and Alberta's heavy oil. They pay handsome dividends while I wait and grow older.

The one risk that is worse financially than inflation is DIVORCE. So my advice is to stay single. If you need a friend in life, get a cat or dog. When divorce strikes, it's just like the Sprint commercial on TV: "50/50"; "even-steven"; and it happens just like loggers sawing-up everything on TV..... Plus, you get a legal bill to pay in the end that is frameable. The divorce experience takes care of any sex-drive you may have. ( I learned the hard way from life, so do your learning from the Sprint commercial on TV. )

[rlskaggs2003]

Re: Why not hold all long term savings in gold?

If you trade physical, how will the government know when you've sold especially if you sell to different dealers and in dribbles? How will they know your basis? And, if I'm in at an average price of $800 and the black market price is $5,000 what do I care if I have to go black market?

[jk]

Re: Why not hold all long term savings in gold?

And, if I'm in at an average price of $800 and the black market price is $5,000 what do I care if I have to go black market?

why do you think a favorite plot line for tv and movies is "drug deals gone bad"?

[lsa420]

Re: Why not hold all long term savings in gold?

The one risk that is worse financially than inflation is DIVORCE. So my advice is to stay single. If you need a friend in life, get a cat or dog. When divorce strikes, it's just like the Sprint commercial on TV: "50/50"; "even-steven"; and it happens just like loggers sawing-up everything on TV..... Plus, you get a legal bill to pay in the end that is frameable. The divorce experience takes care of any sex-drive you may have. ( I learned the hard way from life, so do your learning from the Sprint commercial on TV. )

Amen Steve. Thanks for the post, and laugh.

[waysouth]

Re: Why not hold all long term savings in gold?

dont know why you would move to nz...gold subject to tax at full personal income tax rate

[jtabeb]

Re: Why not hold all long term savings in gold?

dont know why you would move to nz...gold subject to tax at full personal income tax rate

No it's not according to our NZ members? are you one, if so they have different info than you do.

[waysouth]

Re: Why not hold all long term savings in gold?

well you asked..a former nz tax lawyer..

under the nz income tax act,income tax is payable on gains made on all personal property(ie including gold)purchased for the purpose of resale

based on existing case law it will be almost impossible to prove you did not purchase gold for the purpose of resale,otherwise why buy it?

the only saving grace is that tax(unless you are in a special category)is not payable until actual resale..small comfort to loose up to 40% of your currency protection to the taxidermist

[Starving Steve]

Re: Why not hold all long term savings in gold?

But why sell your gold coins? What is the compelling reason to sell and pay capital gains on your coin collection?

You have to enjoy collecting gold coins. You have to enjoy passive gains and growing rich very slowly, without all the fan-fare and fireworks.
And you have to have a lifestyle which doesn't demand too much money every month to live.

Yes, you have to be a miser to really enjoy gold. So if you enjoy Hummers and V-8s, trips around the world, fine restaurants, fine wine, credit cards and debt, do NOT buy gold.

And if you enjoy derivatives and trading in the markets (trying to out-smart the markets, or trying to out-smart market traders) do NOT buy gold. It's not for you.

Finally, gold will have its bad years. You have to wait for them and buy some more gold coins in those years. So, you have to really enjoy "the barberous relic", maybe even worship the golden calf.

Until 1974, gold was all but forbidden to Americans to own. As an American or expatriat American, I will never forget the arrogance of the U.S. Government in those years. There are numerous reasons why I own gold, even now, maybe even especially now.

[jtabeb]

Re: Why not hold all long term savings in gold?

well you asked..a former nz tax lawyer..

under the nz income tax act,income tax is payable on gains made on all personal property(ie including gold)purchased for the purpose of resale

based on existing case law it will be almost impossible to prove you did not purchase gold for the purpose of resale,otherwise why buy it?

the only saving grace is that tax(unless you are in a special category)is not payable until actual resale..small comfort to loose up to 40% of your currency protection to the taxidermist

Okay, I just had different info from NZ Itulipers Sharky and ICM63. They said it was taxed at the capital gains tax rate.

[waysouth]

Re: Why not hold all long term savings in gold?

we dont even have capital gains tax in NZ....!

[Jay]

Re: Why not hold all long term savings in gold?

Yes, you have to be a miser to really enjoy gold. So if you enjoy Hummers and V-8s, trips around the world, fine restaurants, fine wine, credit cards and debt, do NOT buy gold.

I've bought plenty of gold, yet I still love travel, wine and food. I also buy almost everything on credit and pay my bill every month and pocket the cash back. Maybe I'm broken? :p