Sunday, October 10, 2010

Gold taxes

something else to consider: the US Government considers the sale of gold as a "collectible," and the profit realized aka capital gain is levied at 28% instead of current long term cap gains for stock at 15%! Also realize this same higher rate applies to the GLD ETF! so don't think you can circumvent the high tax the government takes via the ETF, instead of selling gold coins. I don't know if the collectibles cap gains tax goes up next year with reversing the Bush tax cuts. However, if buying gold coins, there is sales tax collected from a dealer within your own state, on top of their margin over spot price. There is a lot of headwinds to the liquidity of gold, I think this has lead to greater popularity of the gold ETF, however most people don't realize their realized cap gains are taxed at the higher rate of 28% even for an ETF.

Are you going to go crazy now?

As I've said before, some people stop doing science and just do crazy and awkward things; other people try to prove that they were worth it, and overload with research so much that they go crazy in a different manner; and of course, some Nobel prizewinners are actually senile by the time they get the prize. I'll try to keep my sanity as long as possible.