Current economic woes contribute to the world’s disillusionment with fiat money. Few people still believe that the financial system is not broken. Citizens increasingly demand that governments recognize gold and silver as valid currency.
Bullion is well known as a store of wealth. Some states in the U.S ask that the State Treasurer protect state reserve funds from inflation and financial risk. According to these States, they can protect themselves by allowing the State Treasurer to hold physical gold and silver.
In February 2021, the Idaho House of Representatives approved a bill. The bill enables the State Treasurer to hold bullion, including physical gold and silver. The Senate of Idaho still needs to confirm the tax bill. According to Ed Moy, an erstwhile director of the U.S. Mint, the Constitution allows states to provide citizens the ability to settle debts in gold and silver.
The bill, “The Monetary Metals Tax Neutrality Act” introduced by a U.S politician, Alex Mooney, proposes recognizing bullion such as gold and silver as a valid currency. The bill proposes to remove all forms of taxation on bullion. The Act means that citizens will not pay capital gains tax on bullion, including gold and silver bars and coins. Effectively, the bill recognizes the use of gold bars and silver coins as forms of legal, day-to-day currency. It proposes using gold and silver coins as money and will be a form of currency.
Currently, the revenue collection agency, taxes gold, and silver as valuable goods subject to capital gains tax. Gold and silver are subject to capital gains taxes because the taxation agency classifies them as “collectibles.” Capital gains tax provides for the taxation of gold and silver investors. Investors can pay up to 28% capital gains tax when they sell their gold or silver.
According to Rep Mooney, bullion and especially gold and silver coins are money. Traders should accept payment in gold and silver coins in day-to-day commerce. It is, therefore, incorrect to refer to gold and silver coins as collector items. Since the coins are U.S. money, they should not be taxable.
Many other voices ask that gold and silver coins should be legal tender. There are 41 states in the US who have now abolished or partially abolished sales tax for bullion dealers to sell gold and silver bullion. Arkansas is one of the states that exempt gold and silver from sales tax. One of the latest additions to this list is the State of West Virginia.
Despite the devastation by the Omnicron virus that doubles every second day, causing infections in Denmark to rise by 60% in one day, it seems that all is not lost. Gold and silver bullion demand is significantly higher than in 2020.
With the volatility in silver and prices still at historical lows, it is a good time for investors to start to add to their physical silver positions. Figures from China also indicate that the consumption of silver is at its highest level ever.
Many governments are investing in alternative energy projects. China is also working on installing 5G systems for entire China by 2025. Many car manufacturers are working on the electrification of their vehicles. These projects will benefit silver and will increase silver consumption.
Is this a good time for investors to buy silver bullion Brisbane? It is believed that silver bullion owners in Melbourne can currently benefit from the low silver price. When the Silver price in AUD has reached recent low long term investors were lined up at their local bullion dealer to buy silver bullion Brisbane.
