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Precious Metals and the Fraud of ‘Capital Gains’
There are many ways in which our corrupt governments, and the Corporate media (which acts as their parrot) seek to undermine and persecute those who acquire and hold precious metals. Two of their most-loathsome habits concern precious metals and taxation.
The Corporate media regularly lies about how the principles of taxation apply to precious metals. This is generally for the purpose of frightening people away from gold and silver. Our governments regularly assess illegal taxes against gold and silver, as this is an indirect means of stealing our gold and silver.
When it comes to the taxation concept known as “capital gains”; we see both: lots of lying and illegal taxation. The basis of all this lying and illegality is simple: there has not been any “capital gains” for the holders of gold and silver, ever, even when nominal prices were rising, because there cannot be any capital gains.
Gold (and silver) is “capital” – i.e. money. Thus, as a medium of currency, it is impossible for a 1-oz gold or silver coin to experience a capital gain, because no matter how long you hold one of these 1-oz units of money, it remains a 1-oz unit of money. We can demonstrate this principle in empirical/historical terms.
Two thousand years ago, in ancient Rome; a holder of a 1-oz gold coin could use that coin to purchase the “fine clothing” of that era: a quality toga, along with the customary accessories – a leather belt and sandals. Two thousand years later; a 1-oz gold coin still has the purchasing-power to buy a fine suit of clothing and accessories. However, with the price of gold temporarily/illegally suppressed; one would have to buy that suit “off the rack”.
Where is the supposed capital gain? Over a period of two thousand years; there has been no increase in purchasing power for our (gold and silver) money. Therefore any claims (by government or media) that precious metals holders have experienced “capital gains” over some period of mere months/years is obviously fraudulent.
What does it mean when the nominal price of gold and/or silver increases, as expressed in our debauched paper currencies? Does it mean that our gold and silver has increased in value (i.e. purchasing power)? No, it means precisely the opposite. It is the paper currencies which relentlessly lose value/purchasing power. Our 1-oz gold/silver units of money have remained exactly the same.
Again, this is something which we can prove empirically. We have already established that gold (being perfect money) never loses value, at least not over the two thousand years of empirical data we have at our disposal. We know implicitly that the same is true is silver. Prior to the last century of ruthless manipulation of silver prices; for thousands of years the gold/silver price ratio had remained fixed at a ratio of (roughly) 15:1.
If gold has not lost any value in two thousand years, and silver did not lose any value versus gold over that time (until the modern era of market manipulation), then silver could not have lost any of its value/purchasing power either – over 1,900 of those 2,000 years. Both are perfect money.
Then we have the bankers’ laughable paper currencies. It is common knowledge that in the mere, 100-year history of the Federal Reserve (where it was legally responsible for “preserving the value of the dollar”); the U.S. dollar has officially lost roughly 99% of its purchasing power. Unofficially; the dollar is already totally worthless – having been hyperinflated by the Federal Reserve following the Crash of ’08.
This comes as no surprise to us. In the approximately 1,000 years since bankers first began experimenting with this “funny money”; their paper currencies always go to zero – except when they are yanked out of circulation before that can happen.
The bankers’ paper currencies always go to zero, and generally in relatively rapid terms (in comparison to real money). Gold and silver – being hard assets, and real money – can never go to zero, and, empirically, we have two thousand years of evidence that they never lose (or gain) value, either.
When some drone of the Corporate media, or the Tax Man of our (corrupt) governments claims that our gold or silver (which never changes in value) has made a “capital gain’ versus paper currencies which always/rapidly lose their value; what is the only rational, legal conclusion which could be reached by any honest entity?
Clearly, all facts and logic (and law) support the conclusion that our precious metals have not (and do not) experience “capital gains”. Rather (and opposite to this legal fiction); it is the debauched paper currencies of the bankers which relentlessly lose their value, and thus suffer (literal) “capital losses”.
Yet try to claim a “capital loss” in your tax return, based on the all the loss-in-value which we all lose (every year) on any/all paper instruments denominated in the bankers’ worthless currencies, and see what happens. Our corrupt governments (and the corrupt courts which act as their tools) will deny the existence of such “capital losses”, despite the conclusive empirical evidence which establishes this point.
Here astute readers will note that the endemic “capital gains” fraud practiced/perpetrated by our governments goes well beyond merely stealing our gold and silver. This capital-gains fraud is employed by our governments versus most classes of hard assets – alleging that nominal gains in price represent a “capital gain”. But a capital gain can only be defined as an increase in purchasing power. If there has been no increase in purchasing power, then one’s capital has “gained” nothing.
What makes the capital-gains fraud perpetrated by our governments with respect to gold and silver (somewhat) different from other, similar categories of capital-gains fraud perpetrated by these governments is that with other classes of assets (unlike gold and silver) it’s not possible to prove there has been no capital gain. Simply, we don’t have two thousand years of empirical evidence to support this Truth with respect to other classes of assets.
While the logic (and legality) here is undeniable; many readers may find use of the term “illegal taxation” to be problematic. This is because part of the endemic brainwashing aimed at us is that, being creators of laws, our governments can (literally) “do anything they want”. They simply pass a law making a particular government action (supposedly) “legal”, and then there is nothing we can do about it.
No. Back when these corrupt regimes still paid lip-service to the Rule of Law; they openly acknowledged that their actions were bound by all of the principles of our Constitutions. Since that time; all of these corrupt regime have inserted their Constitutions into the nearest, available paper-shredder. Consequently, these fascist regimes (and their puppet-courts) now refuse to recognize the concept of “constitutionality”.
However, there is an overriding principle of law which goes above-and-beyond our Constitutions: the “duty of good faith”. Very simply, even without Constitutions, our governments are required to have a legitimate purpose for each/every law they enact, or our judiciary is required to strike-down that law.
Thus, for example, if one of these corrupt regimes was to pass a law tomorrow requiring people with blue eyes to be taxed at double the rate of everyone who does not have blue eyes; such a “law” would be illegal. Even the corrupt, pseudo-judges who preside over our courtrooms would be too ashamed (or fearful?) to rubber-stamp such an obviously illegal law.
Taxing people with blue eyes more perniciously than everyone else is entirely arbitrary, one of the most-common/most-obvious traits of the illegal laws (and “bad faith”) regularly perpetrated by our governments. In the case of supposed “capital gains” (and capital gains taxes) on gold and silver, such an illegal law is not merely arbitrary, it is perverse.
We can not only prove (empirically) that our precious metals never experience capital gains, we can equally prove empirically that all of our paper currencies are continuously losing value (and thus experiencing capital losses). No one should ever be taxed on (fraudulent) claims of “capital gains” for gold and silver. Everyone should be able to claim capital losses on their holdings in the bankers’ debauched paper currencies.
The “law” however is entirely opposite to this, entirely perverse, and thus entirely illegal. Period.
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Moot point from a firm that is breathing fumes at the lowest level of the mine. Maybe they can melt down that giant coin in the lobby..or has it been replaced by a Chinese tungsten copy?
Law has been converted to lawlessness in order to oppress and punish lawful defense.
When you guillotine tyrants, also guillotined are the tyrant's taxes, debts, and instruments of plunder, laws.
The banksters need to repay us.
Guillotines eat tyranny, and shit Liberty.
“There are many ways in which our [sic] corrupt governments… undermine and persecute those who acquire and hold precious metals.”
Let me add to your ammunition.
They also use terror to frighten people away from precious metals.
More than 40 years ago I came to the conclusion the country was occupied by thieves; and that their main instrument of plunder was the Federal Reserve. And I didn’t have the patience to wait for someone else to provide an alternative. So I established a gold-based banking service and operated it for 28 years. Eventually the plunderers decided to shut me down with a show trial, as most people know it. It was actually a classic inquisition: no evidence, no witnesses, no victims, no discovery, all resources seized before the “trial”; no jury, no trial – just a summary judgment for a crime that never happened. Oh, and a tax liability based on customer property that has recently ballooned to over $100 million. In the meantime I spent 5 months in jail (refusal to produce records).
As a result of this terroristic operation, most of my customers refused to walk on the same side of the street as I – figuratively, of course. There are other vignettes of this saga of terror you’ll find sort of amusing… I hate to admit.
The Casino is rigged and you must use the Casino's chips. The money changers haven't learned, and so history, in this regard, my repeat its bloody past.
d-uh. Everyone pays taxes on nominal change in price, not on change in value in all financial assets.
nothing here about the 28% rate for "collectibles" regardless of holding period. tsk tsk.
Doesn't that only apply after the first year?
That's the beauty of dollar cost averaging.
If ever questioned, you've only sold what you just bought. ;)
Is Nielson suggesting that the amount of gold mined (or stolen from indigenous peoples) closely matched the increase of population that has occured since the golden age of Rome? Or is it that the demonitization of gold that occured in 1933, by extroadinary coincidence, coincided with the expansion of the population? Or is it that the expansion of fiat money in the last two centuries miraculously coincided with both the rapid expansion of the population and the explosion of industrialization in the western world.
And just as one ounce of gold in Ancient Rome would buy fine seats to a senate speech by Cicero, I would pay one ounce of gold to watch Jeff Nielson use this argument in his federal tax evasion trial.
I would stand in line, sell you my spot so you could see the Trial, I would gain 1 oz for my forsight and time.....Gold is over $1600 Can. Hard to make that kind of wealth, tax free for standing in line saving a spot......I'll read about the outcome later .
Shop/negotiate with hard assets on craigslist.
Ok Dennis Miller get off the podium...
Once you own it it slides off the radar.
Or drops to the bottom of a lake...
new tee shirt
seen at zero hedge yacht club
gold don't float
neither does the Swiss franc...
Ker-Plunck
#41
Nothing new here that the avg. ZH reader isn't well aware of.
My beautiful Barbarious relic... We have been friends for a very long time.
I hold PM's for their artistic value, because nothing says beauty like a stack of one ounce coins...and oh yeah, shiny.....
Sales of gold coins are being reported only if more than 20 at the time or something close to that.
Rocky Racoon should jump on this.