Many are seeing the benefits of gold as investment during this down economy. You can also invest in gold via financial products such as options, futures and spread betting. With all of these products, you’re betting on the future movements in the gold price. You don’t own any gold, and you don’t have the right to take possession of any gold.
A lot of silver is used in small quantities in devices such as mobile phones can be less economical to recycle as opposed to gold. So less silver is recycled, thereby creating the need for more primary mine supply. Overall, silver industrial and investment demand continues to increase significantly while meanwhile supply is falling.
For some closed-end funds, special U.S. federal income tax rules apply because they are defined as Passive Foreign Investment Corporations (PFICs) by the IRS. If a U.S. non-corporate holder makes a timely QEF election each year by filing IRS form 8621 with his or her federal income tax return, it will generally mitigate the otherwise adverse U.S. federal income tax consequences of owning precious metals via coins, bullion or ETFs. Capital gains will be taxed between 15% and 20%, depending on the holder’s specific personal situation.
Other hard money enthusiasts use999 fine silver rounds as a store of value. A cross between bars and coins, silver rounds are produced by a huge array of mints , generally contain a troy ounce of silver in the shape of a coin, but have no status as legal tender which makes them lose favorable VAT status in those countries where lower or zero-rate VAT exists for silver coins. Produced in a wide variety of different designs, ranging from reproductions of existing coin designs to wholly original shapes and patterns, rounds can be ordered with a custom design stamped on the faces or in assorted batches.
The gold thing is driven by fear, versus if I buy a piece of real estate. If I buy a $300,000 rental house, it will make me a certain number of dollars in rent. I have the rent, which I can analyze and say that if I do my job as a landlord and fill up the property, then that investment will create revenue. It’s not a brick. It creates revenue and it has the future to create revenue. It can also go up in value in addition to that.