Permanent Portfolio Forum
https://www.gyroscopicinvesting.com/forum/
https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=5099
He forgot to mention that you can't eat it. Otherwise he made all the usual arguments of someone who doesn't like it.BP wrote: Has anyone ever read Mr. Reed's book "How to Protect Your Life Savings from Hyperinflation & Depression, 2nd edition"?
http://www.johntreed.com/hyperinflationdepression.html
His thoughts on gold (he is not a fan): http://www.johntreed.com/golddisadvantages2.html
I checked out the link, we've all heard a lot of his arguments before. There is no disputing that gold is taxed at a high rate, has previously been confiscated, is targeted by counterfeiters, etc. Folks on this forum usually look past most of these problems due to all the benefits physical gold offers.BP wrote: His thoughts on gold (he is not a fan): http://www.johntreed.com/golddisadvantages2.html
The IRS instructions are fairly clear on this point, as are the H&R Block At Home instructions:notsheigetz wrote: The only persuasive argument on his list for me was item#1 - the 28% tax on long-term capital gains - that is if it's true.
As a soon-to-be retiree hoping to make the typical move of reducing or even eliminating taxes by lowering my income, the thought of having to pay a 28% tax on part of it is very unpleasant. I know this has been kicked around before in the the gold forum but my current understanding is that the 28% tax only applies if your top marginal rate actually reaches that figure. This is still very unclear to me, however. Googling on the matter I found the blanket statement that the 28% tax applies many times but only found one page stating it the way I understand it. Are there any tax experts here who can clarify?
I will still not be dissuaded from holding gold even if the tax applies but it will definitely affect whether I hold it in a taxable or non-taxable account. I currently hold physical in taxable, and paper gold in an IRA, the majority in the latter but I have been shifting it around lately. Will stop doing that if I find out that the 28% tax actually applies.
Just as I thought. I therefore conclude that Mr. Reed's #1 argument is misleading, whether he realizes it or not.Libertarian666 wrote: The IRS instructions are fairly clear on this point, as are the H&R Block At Home instructions:
The maximum rate for long-term gains on "collectibles" is 28%. The actual rate is the lesser of that and your marginal rate.
Note: I am not a tax expert, do your own diligence, etc.