Anyone else worried about this? In Europe gold is exempt from VAT but the other metals are not. Do you think this will happen here. I am not a supporter of VAT but I think eventually we will have one here. Maybe they will tax bars but not coins. I am thinking that this could raise the price of junk silver if it happens.
It is true that silver is subject to VAT in most European countries and gold is not. I'm worried about a VAT in general. It will have a devastating effect on the economy and will lead to a black market for most goods subject to it. (As in Greece) All modern governments operate under a fiat system. High PM prices are indicative of a lack of confidence in that fiat currency. Also, high bullion prices drive panic buying..driving the cost of PM even higher as more people lose more faith in worthless paper money. Governments have a vested interest in keeping the cost of PM, especially gold, as low as possible. They don't want panic. They don't want people taking their government issued fiat currency and buying PM instead of investing in the stock market, or spending it on consumer goods. I see a VAT on precious metals doing two things in the US: 1. it will keep the price of PM down and 2. it will discourage people buying PM For a government insistent on irrepsonsibly printing and spending money how could it NOT put a VAT on PM? If people want a European-style, cradle to grave welfare state - they are going to have to accept European welfare state level taxation. Somebody has to pay for it.
Sooner or later we will have a VAT in this country i dont like it but there is no other way for a country which is hell bent on spendind $2 for every $1 it takes in. I didnt know gold was not taxed & silver was acrossed the pond.:bigeyes::hammer:
Taking the two statements together, you'd think we'd already have a VAT in the US. Following your reasoning.....it would include gold as well. Reconsider your logic.
