Wednesday, December 10, 2008

Long term capital gain on physical gold is unconstitutional

I'd like to bring up a point where the premises is based on the Constitution stating that the states shall not accept anything other than gold and silver as payment of debt.

So, if I purchased physical gold with my fiat paper dollar say in 2003 at say $300/oz and want to resell them in 2011 and I get $4,502.23/oz for it, the claim I'm making is that capital gain should not apply since I would only convert that gold into paper just so I could purchase a house, food or anything. In fact, I would have not gone through the trouble of converting if it wasn't for this electronic world. So, the fact that this paper money is losing value is not my fault and is not a gain. In fact, it is not my gain but the loss of those who hold dollars.
Those holding dollars should be the one getting a capital loss deduction rather than a capital gain extracted on the gold holder.

They are ready to handle supreme court decision on gun control or a myriad of subject which some are not explicit in the constitution. As for Gold and silver as money, the constitution is clear as crystal. How would the IRS and the government react to a citizen ready to claim the capital gain on gold is not taxable? I wonder...

No comments: