Another invasive law has passed in the US which states that any payments to a vendor of more than USD$600 will have to be reported to the IRS. I am anticipating that more and more material about this law will start appearing on the internet and in the press. This law will affect virtually everyone in the US who has business to business dealings. It could well lay the groundwork for a VAT tax similar to that in the UK and Europe or GST in NZ. This law could reignite fears that the US government could confiscate gold. This would make the government aware of its citizens gold transactions and make it more prone to confiscation.
Traditionally, precious metals dealing have provided a last haven of non-reportable financial transactions. With this current legislation, the status of gold and silver as an anonymous purchase is breached.
What can you do about it if you are a US citizen and you still want to buy gold and silver?
1. Use dips in the gold price to top off your portfolio before the 2012 proposed implementation date of this law
2. Document your purchases so that, should you ever be dragged in to explain the source of funds you used to buy your gold in a subsequent sale, once the regulation is in place, you are ready with the answer
3. Consider opening a safety deposit box at a reputable Canadian bank, then make occasional gold buying/storage trips up north or if you have relatives or friends in other countries, consider having them buy and store your gold for you.
My advice is that no matter where you live, you need to be aware of new legislation that could affect the safety of your ownership of precious metals. As our monetary system worsens, governments will be looking for all kinds of sneaky ways in which they can rob us of our wealth.
If you would like a personal consultation about how to protect your wealth during these uncertain times, please don't hesitate to get in touch: www.financemoneybusiness.com
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