EDITOR'S NOTE: Sick and tired of being taxed to death? Me too! We have more taxes in this country today than ever before. Take a look at this list of taxes I found earlier today...
- Federal Income Tax
- Federal Unemployment Tax
- Workers Compensation Tax
- Social Security Tax
- Medicare Tax
- State Income Tax
- State Unemployment Tax
- School Tax
- Sales Taxes (State and Local)
- Real Estate Tax
- Property Tax
- Building Permit Tax
- Well Permit Tax
- Septic Permit Tax
- Utility Taxes
- Severence Tax
- Corporate Income Tax
- Accounts Receivable Tax
- Privilege Tax
- Inventory Tax
- Food License Tax
- Fuel permit tax
- Inheritance Tax
- Interest Expense
- Capital Gains Tax
- IRS Penalties
- IRS Interest Charges
- Liquor Tax
- Luxury Taxes
- Marriage License Tax
- Service Charge Taxes
- Telephone Federal Excise Tax
- Telephone Federal Universal Service Fee Tax
- Telephone Federal, State and Local Surcharge Tax
- Telephone Minimum Usage Surcharge Tax
- Telephone Recurring and Non-Recurring Charges Tax
- Telephone State and Local Tax
- Telephone Usage Charge Tax
- Vehicle Sales Tax
- Vehicle License Registration Tax
- Recreational Vehicle Tax
- Trailer Registration Tax
- Road Toll Booth Taxes
- Toll Bridge Taxes
- Toll Tunnel Taxes
- Watercraft registration Tax
- Gasoline Tax
- Road Usage Taxes (Truckers)
- Dog License Tax
- Fishing License Tax
- Hunting License Tax
- Cigarette Tax
It's absolutely infuriating to think that just 100 years ago not one of these taxes existed, our nation was the most prosperous in the world, and we had absolutely no national debt. What happened?
At any rate, I just learned that when investing in certain gold coins, there are no tax consequences. That means it's legally possible to profit from buying and selling certain gold coins without giving a cut to Uncle Sam. Sound impossible? It's not. In fact, thousands of people around the country are now taking advantage of this tax loop-hole. And you can too.
Now, gold coins are not really our forte here at Gold World. As you know, we're mainly focused on investing in the companies that find and produce gold and other minerals. However, I've found someone who probably knows more about the gold coin trade than anyone else world! His name is Jim Burg.
Jim is a nationally renowned precious metals broker and a Senior Portfolio Manager for Swiss America Trading Corporation. He's been in the precious metals investing industry for over twenty years and is the premier expert when it comes to diversification with rare gold coins. Bottom line: If there's anyone you need to talk with before buying gold coins, it's Jim Burg.I personally spoke with Jim today very briefly about gold and gold coins. And I'm very pleased to tell you that next week Jim will be writing a special article for Gold World telling us how to invest in certain gold coins without tax consequences. Quite frankly, I'm very excited. In fact, the first thing I'm going to do this weekend is find out how much money I can free up for an investment.
So, look out for Jim's article coming sometime next week. In the meantime, you can visit Jim's website to learn more about him and gold coin investing. Visit www.YourCoinBroker.com. The site is loaded with great info.
- Luke Burgess
Managing Editor, Gold World
A Dump Truck Full of Cash
By Steve Christ
BALTIMORE, MD -- Everything about mining is big. In fact, big is something of an understatement. The truth is its humongous just like its massive dump trucks. And to be sure those trucks are hauling a lot more than rock and dirt out of those giant holes because every hauled load also represents a giant wad of cash.
Just take a look at the top two miners in the world BHP Billiton (BHP) and Rio Tinto (RTP). When it comes to making money these two mining giants have got it wired because these guys are rolling in dough.
And with the markets for their mined commodities as strong as ever these two miners should be filling up their dump trucks with cash for some time into the future.
Clearly it's good to be the king.
Just ask BHP, the world's biggest miner. In its latest earnings release BHP reported that first half profit rose an incredible 63% to $10.45 billion on record production.
The report marked BHP's biggest ever profit and set the record for an Australian company.
Needless to say this stellar performance managed to throw of some cash. So much so that the company also declared a final dividend of 18.5 cents per share, which was an increase of 28% over its previous mark of 14.5 cents.
But even then the company wasn't done. It also announced that it would buy back some $3 billion worth of shares over the next 18 months.
BHP's stunning performance, of course, was mirrored by Rio Tinto.
Not to be out done Rio Tinto also reported strong first half earnings. Amazingly its profits outdid its rivals. In fact for the first half of 2006 the company reported that its net profit rose by 75%.
Like BHP, those profits also spurred generosity by the company to its shareholders. The company also revealed that it had spent some $2.5 billion dollars on special dividends and share buybacks also.
But it didn't end there either.
For its part in all of this the street has collectively yawned. In fact, analysts have pointed to dramatically higher copper and nickel prices as the impetus for the rise in profits. And furthermore, they also warned that higher labor and energy costs could eat into the profits of these giants in the future.
But despite these mining downsides the achievements of these two behemoths stands on their own and the markets themselves continue to be bullish.
In fact, both BHP and Rio Tinto went on to express their optimism.
"Although we have seen increased volatility in financial markets, underlying demand for our products remains strong, and we remain positive about the outlook for the global economy and our markets," said Rio Tinto's Chairman Paul Skinner in a released statement.
Not to be out done, BHP's chairman Charles "Chip" Goodyear went even further.
He remarked in response to questioning in a recent press conference with this gem:
"Can you see prices spiking higher? In some commodities you can" And went on to add that the buyer who needs metals will "pay whatever it takes to get that product."
Recent reports, of course, have only supported these views.
Particularly in regards to nickel.
Analyst now report that supply of nickel may actually be at a deficit. In fact, it is now forecast that there will be a 25,000 metric ton shortfall compared with earlier forecasts of a 20,000 metric ton surplus.
This deficit, of course, is likely to be exacerbated by the continuing strong demand for stainless steel led by China. In fact, it is now estimated that the demand for this metal will jump some 20% as the Asian giant continues to crank out he metal.
Needless to say this imbalance will likely send nickel prices higher on into the future.
But its not just nickel.
Copper deficits too are evolving. In fact, global copper production targets have also fallen by some 600,000 tons this year and some analysts expect China to buy the metal in droves because its manufactures have run down their stocks.
This can only drive copper higher also in the short term and bodes well for both companies.
But even given these rosy scenarios some have their doubts.
After all how long can this bull market in miners and there commodities last?
The answer to this question can be found in a recent report by Swiss banking company UBS.
In it they maintain that the global demand for raw materials will shoot higher in the next 20 years spurred on by demand by emerging nations like China and India.
UBS went on to emphasize that the "enormous" demand would continue as consumption in the world's two most densely populated countries grows.
As a result UBS predicts the bull market in commodities has room to run in into 2026 regardless of what happens here in the states.
In this regard UBS is on to something.
Don't forget, China continues to grow at 10% per year. And amazingly it adds a city the size of Philadelphia every month!
The emergence of India can only push these metal deficits even further.
And when it does the bottom lines of mining companies everywhere will benefit as a result.
You see, it won't just be BHP and Rio Tinto that are rolling in cash. Others too will be filling up their dump trucks with huge profits.
It's a big story that will only get bigger.
- Steve Christ