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<p>[QUOTE=&quot;Sunbird, post: 8095144, member: 116324&quot;]There&#039;s an interesting hitch with the Eagle, Krugerrand, and Sovereign in a number of countries – <b>they&#039;re subject to consumption tax</b>, typically implemented as a VAT or GST.</p><p><br /></p><p>They&#039;re taxed because they&#039;re not pure gold. In countries like Singapore, Australia, New Zealand, and some European countries, they exempt precious metals bullion from their consumption taxes, but only if they meet certain purity thresholds. It&#039;s typically 999 or 99 for both gold and silver.</p><p><br /></p><p>It&#039;s not good law, but that&#039;s what they&#039;ve done nonetheless. Governments shouldn&#039;t be dictating arbitrary purity preferences, especially preferences that disqualify some of the most popular bullion coins in the world (the Eagle and Sovereign – the Krugerrand is not popular anymore). They really ought to be neutral with respect to purity or any other characteristic. I would just exempt the melt value + some margin for premiums (say 7% for gold, more for silver), no matter the form or purity. It wouldn&#039;t even have to be bullion – any and all precious metals would be exempt from sales taxes and VATs, up to the melt value + margin, so that only the added decorative or numismatic value would be taxed. Clean and neutral.</p><p><br /></p><p>As far as Krugerrands, saying they&#039;re the most popular since 1967 is silly and deceptive. It&#039;s like saying the Ford Mustang is the most popular sports coupe since 1967, as though we&#039;re supposed to care about that in any way in 2021. You might as well say that Spanish Pieces of Eight are the most popular silver coin since 1750, as though this should say anything about present-tense popularity. What&#039;s popular now is inherently about now.[/QUOTE]</p><p><br /></p>

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