Jan 23, 2023, 2:08:02 PM Business




Good news for anyone interested in the precious metals sector of the economy or simply where your money is going! Progress is being made toward states acknowledging gold and silver as real money again! Legislators in Tennessee are attempting to establish an in-state bullion depository, according to the website SOUND MONEY DEFENCE LEAGUE This is after already passing a full sales tax exemption on precious metals (HB 1874 and SB 1857) in 2022. According to another article from Sound Money Defense entitled, "West Virginia Delegate Introduces “Legal Tender Act”, Would End Taxes on Gold and Silver," Del. Chris Pritt has introduced House Bill 2333, the “Legal Tender Act.” This measure would establish gold and silver as legal tender in West Virginia, as well as create a nonrefundable tax credit for the use of gold and silver in West Virginia on state taxes.

Arizona, Utah, and Wyoming have enacted similar measures into law. Idaho has considered this measure recently, and a similar measure is expected to be heard before the Oklahoma legislature this year.

In recent decades, monetary gold and silver -- and dollars redeemable in gold and silver -- have been supplanted by the Federal Reserve Note as America’s currency. However, an increasing number of West Virginia citizens are realizing that holding gold and/or silver as a form of savings can help protect against the ongoing devaluation of the Federal Reserve Note.

Other states like Georgia, for example, have already passed similar tax exemption laws, but don’t let that fool you! According to another article from the same site entitled: "Gold and Silver Bullion and Tax Laws in Georgia," § 48-8-3 of the Georgia Code, "sales of gold, silver, or platinum bullion or any combination of such bullion" is exempt from sales taxation, but then they get right into your pockets by hitting you with the Capital Gains Tax whenever you convert your precious metals into U.S currency! Here are a few reasons why slapping an… 


Current West Virginia law assesses taxes on imaginary gains. Under current law, a taxpayer who sells precious metals may end up with a capital “gain” in terms of Federal Reserve Notes. This capital “gain” is not necessarily a real gain, it’s often a nominal gain that results from the inflation created by the Federal Reserve and the attendant decline in the dollar’s purchasing power. Note: The dictionary definition of nominal is "trifling," "insignificant," IN NAME/TITLE ONLY.

Yet this nominal gain is taxed at the federal level—and, because West Virginia uses federal adjusted gross income (AGI) as a starting point for West Virginia income calculations, this nominal gain is taxed again by the Mountain State. 

For those of you who may not understand what this all means, here’s an example. It’s like when my wife buys something from a department store, and after a day or so, the price goes down. Then, she changes her mind and doesn’t want it anymore. After that, my wife returns the item, but she only receives the current, discounted price in place of the one she originally paid. But wait, there’s more. Not only that, but the department store then charges her a money-back fee because they feel she gained an extra added benefit by getting her money back, even though she didn’t get all of it back! Now, I call that a Shakedown-Fake-Out-Bait-N’-Switch! Georgia law, like that of most states, is chock full of draconian revenue statutes. 

Meanwhile, Texas, at one point in time, gave other states an example to emulate. The Texas Teacher Retirement Fund and the University of Texas owned nearly $1 billion in physical gold, but After the Texas Teacher Retirement System foolishly sold its gold, Ohio became the only state to hold physical gold and silver in its state pension fund, according to Sound Money Index for 2023. The Ohio Police & Fire Pension Fund, worth almost $16 billion, allocated 5% of its portfolio to sound money. Pension fund managers have a fiduciary duty to safeguard funds against foreseeable risk. With the practices of today’s Federal Reserve, there is no risk more foreseeable than inflation. But almost none of these fiduciaries are fulfilling their duties to protect against this significant risk through an allocation to gold and silver.

While most public employee pension fund managers shy away from gold, they do so at their own risk, the risk of their pensioners, and the risk of taxpayers in their state. As a non-correlated asset to bonds, stocks, and other investments, precious metals are key to true diversification - they are proven to increase overall returns while reducing volatility and severity of drawdowns; otherwise, banks, countries, and corporations wouldn’t be stockpiling tons of it! Back in Tennessee, Sen. Frank Niceley introduced Senate Bill 150, the Tennessee Bullion Depository Act. SB 150 would establish a depository to operate either exclusively or non-exclusively as a precious metals depository. 

According to Sound Money Defense League, the privately owned and operated state-chartered depository enables citizens to store their precious metals for a fee. And the involvement of the state in an otherwise private depository potentially provides an additional layer of constitutional protection against federal-government aggression, such as the gold expropriation of 1933. It’s important to note that there’s great significance in the statements, “Federal-Government Aggression and The Gold Expropriation Of 1933”! In an article published by Peter Schiff from entitled, "The Great Gold Heist of 1933," President Franklin D. Roosevelt signed Executive Order 6102 on April 5, 1933. It was touted as a measure to stop gold hoarding, but it was in reality, a massive gold confiscation scheme all in the name of patriotism. Have they no shame? 

In the fleece of the American people, the executive order by Roosevelt was one of several steps taken toward ending the gold standard in the US, and President Nixon finished the job in 1971 when he “suspended” the gold standard. By the way, a "suspension" is supposed to be temporary, not 52 years and counting! According to Schiff, with the dollar tied to gold, the Federal Reserve found it difficult to increase the money supply during the Great Depression. It couldn’t simply fire up the printing press as it can today. The Federal Reserve Act required all notes to have 40% gold backing. But the Fed was low on gold and up against the limit. By stealing gold from the public, the Fed was able to boost its gold holdings. The order required private citizens, partnerships, associations, and corporations to turn in all but small amounts of gold to the Federal Reserve in exchange for $20.67 per ounce. 

Then, in 1934, the government’s fixed price for gold was increased to $35 per ounce, leaving the people with fiat currency that became increasingly worthless over time. Thus, America's Fleecing; The Great Gold Heist! If you think the U.S. dollar wasn’t worthless then CHECK THIS OUT! Peter Schiff wrote this: According to the Consumer Price Index data released by the Bureau Labor of Statistics, the dollar has lost more than 80% of its value since Nixon’s fateful decision. Meanwhile, the dollar value of gold has gone from $35 an ounce to over $1,500. Prices aren’t going higher, the dollar is getting weaker!

The main takeaway of all this is: For states to truly protect the financial interest of its people it has to… 

  1. Pass a full sales tax exemption on precious metals
  2. Establish an in-state bullion depository
  3. Make Gold and Silver legal tender again and last but not least…
  4. Eliminate capital gains tax on precious metals

Published by Alton Eugene Handfield

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