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-   -   What do you all think about this idea? (http://goldismoney.info/forums/showthread.php?t=247115)

Tallships 03-16-2008 07:31 PM

What do you all think about this idea?
 
I am new to all of this, but I have been thinking about it for a while, and you could probably use losses in metals to avoid taxes - without losing purchasing power (I think). Take for example: if you buy 1,000$ gold and hold it until it drops to 500$ you then trade it for the same amount of goods and services (what the 1,000$ gold would have bought ) but it could be calculated as a 50% loss due to the strengthened dollar. It would kind of be like shorting the tax market? If this can be done, then PMs are cheap at any price. :bull-buddy-icon:

Tn...Andy 03-16-2008 08:05 PM

Re: What do you all think about this idea?
 
Well, your theory is base on a VERY LARGE assumption, which I not believe could come to pass because the only way out for the FED at this point is to print ( either physically or digitally ):

That gold will go down significantly in value along with a resulting drop in other real goods, because somehow the dollar will gain in value.

WHY would the dollar suddenly gain in value ?

Master_Ho 03-16-2008 09:48 PM

Re: What do you all think about this idea?
 
Quote:

Originally Posted by Tn...Andy (Post 1014563)
Well, your theory is base on a VERY LARGE assumption, which I not believe could come to pass because the only way out for the FED at this point is to print ( either physically or digitally ):

That gold will go down significantly in value along with a resulting drop in other real goods, because somehow the dollar will gain in value.

WHY would the dollar suddenly gain in value ?

That's what I was about to say - but you beat me to it!

In fact, while I expect it to hit a peak and drop at SOME point, some analysts have suggested, and I can not complete rule out, PMs going up and, just continuing climbing as year by year, things get worse!

GoldWampum 03-16-2008 10:45 PM

Re: What do you all think about this idea?
 
Quote:

Originally Posted by Master_Ho (Post 1014784)
That's what I was about to say - but you beat me to it!

In fact, while I expect it to hit a peak and drop at SOME point, some analysts have suggested, and I can not complete rule out, PMs going up and, just continuing climbing as year by year, things get worse!

I would expect something similar to these thoughts. There will likely be some dead cat bounces with both gold v FeRN, but the inverse trending of the two will continue for the foreseeable future.

Tallships 03-17-2008 06:00 PM

Re: What do you all think about this idea?
 
I'm not disagreeing with your predictions of where things are going, I am just trying to say that gold is pretty much a win/win situation no matter which way the strength of the dollar goes.

thrifty_bob 03-17-2008 06:03 PM

Re: What do you all think about this idea?
 
You just illustrated WHY the government NEEDS inflation, because otherwise they can't tax its effect, and most certainly can't afford the tax reductions deflation would bring.


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