GOLD

Section 8-1 is the General Deduction provision.

A capital receipt is not "Ordinary Income" to a Judge and so is not assessable unless there is a specific provision in The Act.

s.102-5 states your assessable income includes your NET CAPITAL GAINS.

This does not make a capital gain "income" for the purposes of this section.

Cheers,

Rob

 

Thanks for clarifying Rob.

 

+1

very interesting & glad to have learned something

will be sure not to borrow to buy futures & expect a deduction

is there a way to claim depreciation if the OP buys gold bullion then?

 

Cheers,

Rob

 

A further item of interest for gold:

World mine production 2000: 2573 mt
World mine production 2005: 2518 mt
World mine production 2006: 2469 mt
World mine production 2007: 2444 mt

Will be interesting to see what the final 2008 production figure is - perhaps 'peak gold' is going to become more of an issue in the new year.

Source:GOLDSHEET - HISTORICAL WORLD GOLD PRODUCTION

Just make sure your gold is not stored in the USA!
Marc Faber: I advise every American to hold his gold outside of the United States | Credit Writedowns

 

I hear a bigger issue than gold production levels is the outside chance that governments (or the IMF) may dump gold on the markets if things get really bad. In reality, if all world governments put only 10%of their bullion reserves on to the market that is still aof gold than the considerably greater amount the yearly production and that could do a lot of damage to the price of gold.

Though of course as mentioned by Marc Faber, governments could go the other way and ban gold as a form of currency like the US did.

 

Interesting -- the IMF tried to sell 400 odd tons in July (can't find out if it happened or not, does anyone know?). Frankly it wouldn't surprise me at all if the US Govt has already been "selling" a great deal of its gold to the market to raise cash. Perhaps they have found a way to bypass the need for Congress permission - maybe they've 'lent' it?

Perhaps so much so that companies like Goldman Sachs have felt the need to partially hedge their positions, creating what some might perceive as 'naked shorts' on the gold market ....

 

What happens if you own shares in a company which is yet to pay a dividend?

 

Nor would I, though with the world's reserve currency (USD) being exposed to increasing inflationary risk holding gold may well be the insurance policy that sorts out which governments will profit at the end of what I think will be easily be the worst recession since the Great Depression.

The US may look to remain the worlds biggest holder of gold reserves, leaving countries like China, Japan at the UK (who have comparatively small gold reserves) in quite an interesting position if gold does reassert its monetary power over all the world's fiat currencies.

 

Isn't this what the REITs were doing?

 

So how about that gold price aye...

 

Gold not shining lately…

Gold not shining lately…

Quotable:
“No gold-digging for me... I take diamonds!
We may be off the gold standard someday.”
Mae West

Gold bugs call your office!
As gold goes so goes the dollar in the opposite direction? That is what we’ve been seeing lately.
Today, gold is sharply lower at the moment and trading below its 200-day and 28-day moving averages.
We continue to believe the markdown in growth out of China is key to the future path of gold.
With our agnostic gaze, we view gold primarily as a liquidity-driven risk appetite asset.
Whenever we say that, we are told gold is much more; it’s a safe haven and a substitute for the ugly fiat currencies (we agree paper currencies are very ugly).
But…
How much more stimulus is possible to pump out and cheapen paper currency the world over?
How much closer can we get to all out war in the Middle East?
How much more dangerous can the Pakistan-India on-going quagmire become?
How much have the probabilities increased for social unrest in China and the potential it has to destabilize all kinds of stuff?
We guess things could get much worse, no doubt. But yikes!
This is nasty stuff on the horizon that we can verbalize and begin see taking shape.
Yet the supposed supreme safe haven—gold—continues to fade on all this stuff.
Aren’t asset markets supposed to price in these expectations?
Is anyone expecting these areas to improve anytime soon? Not that we’ve seen.
Gold bugs have gotten exactly what they have wanted and the yellow metal keeps fading.
So, gold bugs (and that includes you Dad if you are reading) it’s time to call your office!
Jack Crooks LLC

 

I just finished reading this article, it may be of interest.

'Gold Cartel suppressing, manipulating gold price'

If this is true which it does seem to be, how much longer can they continue to do this and is it actually legal?

 

"If this is true which it does seem to be, how much longer can they continue to do this and is it actually legal?"

I believe for as long as they want with a few rallies up from time to time.
Manipulation is not legal....but who can prove it otherwise?

 

There is still a lot of deflationary pressure in economies, and with stimulus packages from both governments and central banks unlikely to fully filter through for months, in many cases years, makes me not as bullish on gold in the short term, as I am in the long term once inflation has a chance to play out.

Manipulation in the markets is nothing new, however I get the impression that manipulators who go aggressively short gold on the expectation they can force those that have highly leveraged long positions in sales to cover margins will find it increasingly difficult to suppress the gold price as more and more investors are buying into gold as an unleveraged investment to diversifying their portfolios and hedge against the threat of inflation. These sorts of buyers are unlikely to be pushed into forced sales to cover margins.

At the end of the day, I still think a suppressed gold price will still outperform the equities market over the next, 3, 6 and 12 months.

 

So has anyone else been riding the upward trend in gold of late?

Still seems like a screaming good buy to me for the next 6 - 12 months.

The other beautiful thing about manipulation in financial markets is that at the end of the day you can generally rely on the old saying "he who has the gold makes the rules." So in that sense manipulating and playing the market which has been going on for centuries is very legal...

 

As a matter of interest, would anyone have a recommendation of the best way to buy into gold at the moment? I wouldn't be investing a huge amount but am just wondering what would be the most cost effective way.

Cheers,
David

 

Well I'm in GOLD, which is an ETF that is traded on the ASX and is a fairly simple way of investing in Gold, though it has its draw backs.here some are slight fees applied, and you don't physically get the gold. Though on the plus side it's simple, liquid, and only costs normal brokerage fee to buy.

You can also look into buying some physical gold via the Perth mint. I've never done this personally and have only briefly looked into it. I think there are some other members on these forums that have bought physical gold via the Perth mint before and would be able to give you better guidance.

You could just look at buying into some gold mining companies as well, SGX and LGL who I'm pretty sure are both unhedged gold mining companies that tend to track the price of gold reasonably well. I also own shares in SGX. There are other larger and more diversified gold miners out there, though most of the ones I have looked into are hedged against the price fluctuations in gold.

 

Thanks Chris, another silly question how does one go about tracking the price of gold? Is there a ticker code I can add to my program on my phone to track it? Also what would be the most cost efficient way to buy into the ETF? In terms of buying physical gold I understand that I could store it in a safe or similar but when it comes to selling the gold how would one do that? Would there be fees involved in that process too?

Sorry for all the questions just trying to work out the best way to get some of my funds on gold as I think theres a definite upside.

Cheers,
David

 

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