A Gold Standard? – JP Morgan’s Silver Hoard – State Sales Tax Problems?
Current Rare Coin Listings Updated
Links to recent informative articles on precious metals and rare coins:
Gold
Bringing Back The Gold Standard
Silver
Wayfair State Sales Tax Legislations
Recommended Investment Commitment And Diversification
During May, Gold has been locked into a $1,270 to $1,300 per ounce trading range. The strong U.S. Dollar, with the Index staying between 97 and 98, has been the key factor causing Gold to be locked into the current tight range. According to the World Gold Council, this low Gold price is giving some of the world’s largest central banks the ability to acquire record amounts of physical Gold.
On the bullish side of the Gold price, interest rates have been dropping. The 10-Year Treasury has recently traded under 2.30%. Why? Because everyone expects that the Fed will remain patient, so much so that a rate hike is not likely this year, nor is the Fed likely to cut rates unless a full-blown US-China trade and tech war emerges, posing a significant downside risk to the U.S. economy. Gold closed last Friday at $1,283, up $8 per ounce for the week.
Today: Gold continues to be stuck in a tight trading range between $1,275 and $1,280 per ounce as the markets are waiting for news on trade talks between the U.S. and China.
The U.S. bringing back a Gold standard is an idea proposed by potential Trump appointee to the Federal Reserve Board of Governer, Judy Shelton. Mrs. Shelton recently stated “If the United States would take this first step towards linking the dollar to Gold, it would send a signal of America’s commitment to restoring the integrity of the dollar as a meaningful unit of account and reliable store of value.”
Silver reached a new 2019 low last week of $14.32 per ounce. Silver closed last week at $14.53, up $0.17 per ounce for the week. The important Silver-to-Gold ratio has dropped to 88.30-to-1.
In the Gold and Silver Articles linked above, there is a very informative interview about JP Morgan’s 850-million-ounce accumulation of Silver.
This link provides an interview of Ted Butler, a leading expert of the Gold and Silver markets:
Today: Silver made another 2019 low this morning of $14.24 per ounce. As the Gold price stays in its tight trading ranges, the Silver price lacks support and continues its move down to the $14.00 per ounce support level.
In 2018, the United States Supreme Court ruled in the case of South Dakota v. Wayfair, Inc, that states may charge sales tax on purchases made from out-of-state sellers. Since that decision, many states who want the additional revenue have been passing legislation that allows them to collect state sales tax. Many internet sellers have started collecting state sales tax when the state legislation is passed. Something these internet sellers don’t know is that, although some states will charge sales tax on numismatic and bullion products in the future, these items are actually exempt from sales tax in the majority of States at present. I am proud to say that for the past thirty years I have worked with the Industry Council for Tangible Assets (ICTA) to help state legislatures to understand the importance of these exemptions. These state sales tax exemptions are different from state to state. Some require a minimum transaction level, i.e. California, of $1,500 to be sales tax exempt. If you have a question about your state’s legislation implementation or exemption, please contact me.
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All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time. Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.