A bill introduced in the U.S. House of Representatives would give investors who hold gold, silver and platinum bullion the same capital gains treatment enjoyed by those who hold stocks and bonds.
Currently, precious metals held in either bars or coins are subject to the same tax treatment as “collectibles,” which are taxed at a rate of 28%, compared with a maximum long-term capital-gain rate of 20% for stocks and bonds held longer than 12 months.
Proponents of the bill contend that granting the same tax treatment for precious metals would level the playing field for precious metals, which many financial advisors say should be part of a diversified portfolio.
“We find that many investors are surprised that gold, silver and platinum do not enjoy the same benefit from the capital gains tax preference enjoyed by stocks and bonds,” says Paul Bateman, president of the Gold Institute, which supports the legislation.
The legislation complements a 1997 bill that broadened what Individual Retirement Account holders can keep in their portfolios. The law permits the holders to keep gold and silver bullion coins in their retirement accounts, as well as other bullion coins or bars that contain at least 99.9% pure gold.
— The preceding is an excerpt from Gold News, published by the Washington, D.C.-based Gold Institute.
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