Hi Praveen : RE Gold and tax
I live in the UK, so things are different over here. If we hold gold in the form of Sovereign or Britannia coins then they're considered as legal tender and are exempt from capital gains tax etc.
If we hold paper forms of gold (ETF's) within an ISA (tax exempt account to which we can add around $15K each year), then again no CGT falls due.
Outside of our ISA we're also allowed around $15K each year of CGT exempt gains.
As another example our Gilts (treasuries) are also exempt of CGT and can (provided they have at least 5 years left to run at the time of purchase) be held in a ISA for income tax savings as well.
For the last few years the US has been making it difficult/impossible for US citizens to hold any offshore accounts as a form of monopoly protectionism of their tax streams. I was already aware of some of the taxation differences you mentioned. I've even seen reference to terms and conditions against US bank accounts being changed to incorporate a 'we reserve the right to pay out only living expense type amounts from bank accounts' type clauses. Stinks a bit of preparatory measures in case a significant 'open seizure' of some kind became necessary/attractive. For the time being however they're running with a seizure by stealth (attempting to devalue everyone's savings, so they can tax you against subsequent 'investment gains').
With gold up what, around 4 times prior levels, that might be considered as a value of 25c on the $, or 75c on the $ already having been stealthed out of investors life savings. Some gold holdings would have in part reduced that 'contribution', even after the collectibles tax had been paid had been considered.
On the plus side, is that everyone else is playing a similar game, so I guess there is a chance that down-the-road high/hyper inflation might be mitigated. Write a large amount of existing debts down by QE, and replace older higher rate debt with near 0% debt costs and things will all be ready to start all over again.
Toofuzzy and myself have been having a little tit-4-tat about Long Dated Treasuries. He thinks that at near 0% base rates that LT's are a no-buy at present, whilst I've stated the other side that current LT yields of 4% could continue down to 2% type levels (as per Japan) in which case LT's could still yet double in price (but admittedly they are risky in that if LT yields do rise to 8% then the LT's could halve in price).
Interesting times we live in.
Best. Clive.
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