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Legislation Repealing Controversial Form 1099 Rules Passed By Senate, Headed To White House
Florence Delva/Getty Images A stack of coins is shown in this file photo. A new IRS rule that will start in 2012 will require sellers, buyers of gold coins to file IRS paperwork.
(Kitco News) Both chambers of the U.S. Congress have approved legislation to eliminate controversial new Form 1099 tax-reporting requirements that coin dealers and other business organizations had complained was too onerous.
The measure is on its way to the desk of President Obama after Senate passage by an 87-12 vote Tuesday. A number of news reports suggested that the White House is expected to sign the bill into law.
Sen. Mike Johanns (R-Neb.), who introduced Form 1099 repeal seven times, said the Senate measure was identical to a version that already passed the House of Representatives. This means the measure does not have to go to a conference committee and instead goes directly to the White House. An amendment that would have resulted in further delay of 1099 repeal was rejected, he said.
“I appreciate that my colleagues have seen the wisdom of avoiding further delays and getting this costly, looming paperwork burden off the backs of our job creators,” Johanns said. “We now need only a simple signature from the president and this bill will become law, saving jobs and much needed capital for our small businesses.”
The House passed a bill for repeal of the Form 1099 rules in early March. Both parties have favored repeal for months now, although it was held up by a fight over how to offset to any health-care funding that purportedly would be lost. According to news reports, the House and Senate bills would limit health-care subsidies for families over a certain income threshold.
The Industry Council for Tangible Assets said Tuesday night it was cautiously optimistic that the repeal will become law. ICTA is a trade group for the rare coin, precious metals and tangible assets industry.
The group noted that as of early last month, a statement of administration policy indicated that the White House did not agree with Read more…
Can You Anticipate Gold To Hit $1,500 & Silver $50 Quite Soon, Probably As Early As Summertime?
Yes, I believe that you can anticipate gold to hit $1,500 and silver to hit $50 extremely quickly, perhaps as early as this summertime. Now would be an excellent time for you for making investments in gold and silver. Buy precious metals now.
FOR IMMEDIATE RELEASE
Governments have in turn cherished it, hated it and now are beginning to adore it again. It’s what it is purported to signify that leads to all the fuss. Just take a look at the factors put forward by some regarding why it’s rising in price and Read more…
Worldwide Silver Shortage?
FutureMoneyTrends.com has recently received several reports, published and non published reports about possible silver shortages. Is their a very limited supply of silver, yes, is there a worldwide shortage happening right now, well not exactly. Under the agreement that we wouldn’t reveal their name, a major bullion dealer who we are friends with, told us that their traders are not having any issues buying physical silver, and that their warehouse had a significant amount of physical silver. Now, will there one day be a shortage of silver, in our opinion at these prices, yes, the price for silver will have to move up considerably in order to come in line with the above ground available supply and ever increasing demand. Sorry to disappoint you, Read more…
True Obama debt bigger than planet’s entire GDP
 President Obama |
As the Obama administration prepares to finance a Fiscal Year 2011 budget deficit expected to top $1.6 trillion, the American public is largely unaware that the true negative net worth of the federal government reached $76.3 trillion last year.
That figure was five times the 2010 gross domestic product of the United States and exceeded the estimated gross domestic product for the world by approximately $14.4 trillion.
According to the U.S. Department of Commerce Bureau of Economic Analysis, U.S. GDP for 2010 was $14.861 trillion. World GDP in 2010, according to the International Monetary Fund, was $61.936 trillion.
“As government obligations continue to spiral out of control and the U.S. government shows no willingness to make the magnitude of spending cuts required to return to fiscal responsible, the U.S. economy is headed to a great collapse coming in the form of a hyper-inflationary great Read more…
China top bank sees explosive growth in gold demand and voracious appetite for silver
SHANGHAI (Reuters) –
Demand in China for physical gold and gold-related investments is growing at an “explosive” pace and its appetite for the yellow metal is poised to remain robust amid inflation concerns, said an Industrial and Commercial Bank of China (ICBC) executive.
ICBC, the world’s largest bank by market value, sold about 7 tonnes of physical gold in January this year, nearly half the 15 tonnes of bullion sold in the whole of 2010, said Zhou Ming, deputy head of the bank’s precious metals department on Wednesday.
“We are seeing explosive demand for gold. As Chinese get wealthy, they look to diversify their investments and gold stands out as a good hedge against inflation,” Zhou told Reuters.
“There is also frantic demand for non-physical gold investments. We issued 1 billion yuan worth of Read more…
Gold-Silver Ratio: Silver value highest in five years
NEW YORK (Commodity Online): As precious metals continue to lead the commodities boom globally, the most frequently asked question these days is where does the gold-silver ratio stand.
Over the years, gold has been the high value beneficiary commodity in comparison to silver. But last week, the gold to silver ratio fell to just above 45:1. According to Wayne Atwell, Managing Director of Casimir Capital, the silver value in comparison to gold is the highest in the last five years.
“This is because people—investors—are regarding silver as a safe haven investment just like gold,” he says.
Atwell said: “Suddenly with the anxiety level that’s surfaced about sovereign debt and municipal deficits, people are turning to alternative ways to hedge themselves and I think people felt silver was cheap based on where it has been historically, so they jumped on the bandwagon.”
Gold-Silver ratio is the most important barometer for commodities traders and futures market dealers. Even though Read more…
The Coming Silver Accident
Theodore Butler
Perhaps “accident” may not be the precise word to describe what I see coming in silver. After all, Webster’s defines accident as “an unforeseen and unplanned event or circumstance.” While that definition certainly encompasses what I see ahead in the silver market, I need to add a qualifying adjective to complete my vision. That word is unavoidable. The silver market is headed towards an unavoidable accident.
This will not be like any accident you have ever witnessed or experienced. This is an accident you can fully prepare for, and greatly profit from. This coming silver accident could favorable and permanently alter your family’s standard of living and financial security. The great news is that preparations for this accident are simple and merely depend upon you applying common sense.
At the core of what makes the coming silver accident unavoidable is the immutable law of supply and demand. Supply and demand ultimately governs how all markets function. While some markets, including silver, can be artificially controlled or manipulated in price for long periods of time, eventually such manipulations must end if they are at odds with supply and demand.
Nothing has been more at odds with the basic law of supply and demand than the silver market. For many decades, the world has consumed more silver than it has produced. That has necessitated a draw down of previously produced silver – the existing inventories. There has never been a situation in any Read more…
Gold buying spree grips Chinese households
In this world of chaos and tumult, the Chinese people know what to do to preserve their wealth – they buy gold. When Americans finally wake up, if that ever happens, there is a good chance that there won’t be any gold to buy at any price.
By David Lew
BEIJING (Commodity Online):An unprecedented investor interest in gold is turning Chinese households as store houses of wealth these days as people are on a gold buying spree across the rural and urban areas of the dragon country.
Bundles of news stories are these days written on the gold buying spree by the Chinese households. If not an overstatement, it is now a fact that people’s houses in China have soared in value thanks to the rising prices of gold in the last two years.
“People in China are buying gold like never before. They believe that gold is the best form of investment. So they are buying gold coins, bars and jewelery items and stocking up safely in their homes,” says Beijing-based bullion dealer J Kim Lee.
Quoting the World Gold Council figures, Lee says that if the gold buying spree by Chinese households goes on at the current pace, private gold Chinese demand may overtake Indian gold demand by 2014, giving the world’s two most populous nations two ounces of gold in every five sold worldwide that year.
Indian households are estimated to be owning 15,000 tonnes of gold. India continues to the largest consumer and importer of gold worldwide.
According to precious metals analyst Steven Jon Kaplan, a significant percentage of gold’s price increase in 2009-2010 was caused by the incremental demand from Read more…
China should increase precious metals
Sungwoo Park
SEOUL – China should increase its gold and silver reserves, the Economic Information Daily reported on Monday, citing an interview with China’s central bank adviser Xia Bin.
Increasing gold reserves at the “appropriate time” is in line with the strategy of internationalizing the yuan, the report cited Xia as saying. “Related departments” should employ a “buy in the dip” strategy over a very long period of time, Xia said.
Bullion soared nearly 30 percent in 2010, advancing for the 10th year, as the dollar dropped and investors sought a store of value amid currency debasement. China is allowing greater use of its currency for cross-border transactions, seeking to reduce reliance on the dollar.
The report is “a positive factor for gold prices in the mid-and-long term,” Hwang II Doo, a senior trader at Seoul-based Korea Exchange Bank Futures Co, said on Monday. Still “it didn’t have immediate impact on prices as gold’s gain has more to do with the unrest in Egypt at the moment.”
Total gold consumption in China, the second-largest buyer, may gain 15 percent in the first-half, fueled by growing demand for alternative investments and a hedge against inflation, the China Gold Association said last week.
Imports of gold by China jumped almost five-fold in the first 10 months of last year from the entire amount shipped in 2009, the Shanghai Gold Exchange has said. Shipments were 209 metric tons compared with 45 tons for all of 2009, said exchange Chairman Shen Xiangrong.
The country increased gold reserves by 454 tons to 1,054 tons since 2003, the State Administration of Foreign Exchange said in April 2009. The metal only accounts for 1.6 percent of the nation’s reserves held by the People’s Bank of China, according to the World Gold Council. China doesn’t regularly publish gold-trade figures and rarely comments on its reserves.
Bullion for immediate delivery gained as much as 0.7 percent to $1,346.27 an ounce, and was at $1,339.25 at 12:53 pm in Seoul. The price rose 2.5 percent on Jan 28, the biggest intra-day increase since Nov 4 as escalating tensions in Egypt fanned concern that unrest may spread to other parts of the Middle East, increasing demand for an investment haven.
Silver Hits A New 30- Year High
Spot silver rose to a 30-year top on base metals strength, dollar weakness reaching $30.72 . European sovereign debt crisis and uncertainty in US economic boosted the investments appeal in the precious metals as a means of wealth protection. The white metal is up 74% which is almost triple the growth recorded by the price of gold, which rose 26 percent.
The strength of silver has resulted in a wave of development around the world and a planned production increase in 2010 to 733.2 million ounces, representing increases of 3.3% compared to 2009 and 14% since 2006.
The metal has an inherent appeal due to its industrial use in electronics, cutlery and coins. In addition, supplies are limited.
“The fundamental picture for silver is much more attractive relative to gold,” said Jessica Cross of the precious metals consultancy Virtual Metals.
Finally, the chief raw material analysis of Deutsche Bank , Michael Lewis, said: “The growth potential of silver is greater than gold.”
Demand for the metal is going to the moon!
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