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<p>[QUOTE=&quot;tommybee, post: 921629, member: 24999&quot;]It is true that silver is subject to VAT in most European countries and gold is not.&nbsp; I&#039;m worried about a VAT in general.&nbsp; 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)</p><p>&nbsp;</p><p>All modern governments operate under a fiat system.&nbsp; High PM prices are indicative of a lack of confidence in that fiat currency.&nbsp; Also, high bullion prices drive panic buying..driving the cost of PM even higher as more people lose more faith in worthless paper money.&nbsp; </p><p>&nbsp;</p><p>Governments have a vested interest in keeping the cost of PM, especially gold, as low as possible.&nbsp; They don&#039;t want panic.&nbsp; They don&#039;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.&nbsp; </p><p>&nbsp;</p><p>I see a VAT on precious metals doing two things in the US:&nbsp; 1. it will keep the price of PM down and 2. it will discourage people buying PM</p><p>&nbsp;</p><p>For a government insistent on irrepsonsibly printing and spending money how could it NOT put a VAT on PM?&nbsp; </p><p>&nbsp;</p><p>If people want a European-style, cradle to grave welfare state - they are going to have to accept European welfare state level taxation.&nbsp; Somebody has to pay for it.[/QUOTE]</p><p><br /></p>

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