Three More Institutions That Don't Want You to Own Gold
Source: Gold World, Alex Koyfman (7/20/09)
"Notoriously hard to tax, gold is one of those things that the auditors hate seeing on income statements. . ."
Whether it's FOX News or CNN, conservative or liberal, the engines of mass media are fueled by the revenue from their advertisers. And just like investment banks, the media depends on your continued support of corporations.
Whether these corporations provide a good service or strong returns on your investment matters little, so long as you continue to funnel your hard-earned money into their coffers.
Of course, you'll never hear any of this from the well-compensated talking heads you'll see on the old boob tube. But buying gold may preserve your wealth, even if it takes money out of the media's pocket.
Gold Suppression Institution #5: Corporate America
As you've probably surmised by now, corporate America is also heavily vested in the strength of the dollar. As the dollar weakens, the values of their stocks plummet. And as inflation takes hold, consumers are less and less likely to purchase goods produced and sold by our nation's biggest companies.
Every ounce of gold you buy means hundreds of dollars lost, either by manufacturers, by retailers, or by banks that would have otherwise received the cash deposit.
You better believe the rich executives have gold in their own portfolios. But, once again, you'll never hear them make the suggestion to you. There's just too much for them to lose.
Gold Suppression Institution #6: The IRS
Our favorite government entity is also one of the most vulnerable to loss of revenue when gold is bought and sold.
Notoriously hard to tax, gold is one of those things that the auditors hate seeing on income statements because of the problems associated with establishing a basis and the issues of measurable gains made at a sale. It's just too easy to lie about. The bottom line is, when trading gold privately, it's impossible for the IRS—or anyone for that matter—to know exactly how much you bought or sold the bullion for without your honestly reporting it.
In fact, the IRS has never issued a public guidance on the question of how gold is to be valued, at face or market value.