DJIA Predictions

(Sorry man, could not resist) :smile

Look at what’s happening here.

The very thing the experts said WOULD NOT happen… IS HAPPENING!

The economy of the planet has been on an unprecidented tear for the last 5 years or more. THINK ABOUT IT!!! There’s a 2 year waiting list for new FERRARI’S! MEGA YACHT builders same thing, then add in a GLOBAL housing BOOM! It sounds GREAT! But…

These things end only one way. (and it ain’t good)

China is near historic highs, India near historic highs, Germany, England, The U.S is only 1800 points off our all time high, and our economy is starting to show cracks. Regardless of what “the experts” say, this isn’t going to be a 3 month recession. Cripes people, these are the same guy’s who told us the Housing Bubble didn’t exsist (remember that!) , the Sub Prime mess was contained (MY PERSONAL FAVORITE!) , and this Credit Crunch WOULD NOT spread to other parts of the world!!



Does anybody have a tourniquet?


Comments on 2008 predictions about gold and REI

Does anyone know why a person should buy gold/silver stocks versus gold bars to hold in a safety deposit box.

What about the taxable capital gains treatment:

someone selling gold stocks would =tax on 50% of the gain? Correct?

What if the person collected gold coins/bars as a hobby, when they sell would they also have to pay a capital gains tax

As a general rule, everything you own and use for personal purposes, pleasure, or investment is a capital asset. For example, stocks, your primary residence, your household furniture, your car, coin or stamp collection, jewelry, gold, silver, or any other metal are all capital assets.

An exception to the general rule applies when any of these items are held for sale by a dealer, then, they are not capital assets but rather are inventory (merchandize).

Profit on the sale of a capital asset gets capital gains tax treatment. Last time I checked, 100% of your gain is taxable. I am not aware of a 50% of gain rule for federal individual income taxes. Maybe this is a state rule that applies to your state individual income tax return.

The maximum long term capital gains tax rate is determined by the asset type. The maximum long term capital gain rate is 28% for collectibles (your gold and silver bar collection). Stocks and bonds held in your investment portfolio enjoy a 15% maximum capital gains tax rate.

So, if you are looking for a tax reason to prefer holding stocks rather than bullion, the difference in the capital gains tax rate may be sufficient. I would add that stocks are much more liquid than bullion. It is a lot easier and a lot faster to sell shares of stock. Stocks can be held in your brokerage account without charge. Bullion held in a secure vault might incur storage and insurance charges.

15% Holy smokes are you kidding me. If I was a US resident and sold a security (stock) for a gain only 15% of it would be taxed???

Here in Canada it’s 50% capital gains tax on that same stock

I think I am going to be sick…

Yea, but look at the great health care that tax money is buying you. :doh

NEM tracks gold well but no dividend…Check GGN…I think it pays a %7 dividend and pays out monthly…Advice is be careful with buying any commodity stock…They can kick the bejesus outta you quickly…Commodities are volatile and when they pullback it can be %20…I personally would NOT buy gold here,I think it’s very toppy but it may go higher…I’m just not a buyer at these levels…Be careful

if you have a chance check out what Robert Kiyosaki has to say about gold and silver. I’d love to hear other points of view of gold & silver upon hearing Roberts take on what’s going on with the worlds economy. 2008 predictions

Gold and silver are good when there is inflation.

I wouldn’t be buying now, but I think a lot of people are, because they can see the inflation coming.

What you do in inflationary times is you buy gold and silver coins and then you barter them for your purchases. That way there is no capital gains tax because the transaction is off the grid.

The last miserable bad inflation, there was even a little subcult trading gemstones.

I’m not recomending gemstones, because they are very difficult to sell and turn back into cash. But the stones were sealed into tamper-proof packets with an estimated value and evaluation of the quality of the stones. Then there was bartering, using the stones to pay for services.

What you do in inflationary times is you buy gold and silver coins and then you barter them for your purchases. That way there is no capital gains tax because the transaction is off the grid.



Bartering your services won't help, either. The value of noncash items must be determined and then counted as income.


No, you misinterpreted what I said. In the US, 100% of gain is taxed. The long term capital gains tax rate is just 15%. Sell a stock you have held longer than a year for a $10000 profit. Your capital gains income tax on that profit will be $1500. $10000 x 15% = $1500.

I suppose you get the same tax liability in Canada, if your income tax rate is 30% while only half of your sale profit is taxable. $10000 x 50% x 30% = $1500.

You have to tell us, which is the lessor tax on capital gains – US or Canada.

My earlier response which detailed US taxes is probably not applicable to you if you are in Canada.


Currently 50% of capital gains are taxed in Canada at the general rate. (ie $100 CG with 30% tax rate will attract $15 of tax.) Some exceptions apply, such as selling one’s primary residence which may be exempt from taxation.


In the US, is it true that you can write off your mortgage payments not just the interest from your income?

US tax code allows an investor to expense mortgage interest against rental income. If this is what you meant by “write off”, then the answer is yes.

Interest earned on savings or investments is taxable income in the US. If you don’t save or invest your income, then it can’t earn interest. I don’t know what you mean by “interest on income”. You will have give an example.

What about your principle residence mortgage and interest payments…Can you expense any of those payments against your income from a regular (job)

Gold and silver questions…

Agree or disagree that there is less than 10 year supply of silver in the world?

India and China will need how much silver for cell phones, computers etc… I have been researching like mad silver and gold (in case of hyperinflation) but I really wonder about the demand of these emerging markets. Any comments with regards to what goes into making cell phones, computers etc…

Does anyone know if you can buy a pure play on gold that pays a dividend?

Funny thing is I told my 18 old daughter to get her ass and buy gold bars
last year and she did and I didn’t…I’m a dumb ass “not LMAO”

Would you buy gold/silver stocks, etf’s, bullion or certificate and from whom?

I was checking out the Perth Mint… It seems they are the safe place if you want to buy gold/silver certificates. What say all of you…

Mortgage payment for a typical homeownere is debt service (PI) plus taxes (T) and hazard insurance (I). The amount sent in for taxes and insurance is held in an escrow account until such time as the bills are due. When the tax bill or the insurance bill is due, the actual amount due is withdrawn from the escrow account to pay the bills.

Debt service has two components, principal (P) and interest (I). The amount applied to the principal component is repayment of debt and not ever deductible.

If you break down the mortgage payment into PITI

  • Principal (P) is never deductible. Repayment of principal is repayment of debt and not ever deductible.
  • Mortgage interest (I) is deductible for a primary residence but only if the taxpayer itemizes his deductions. Mortgage interest for an investment rental property is expensed against rental income. Mortgage interest for an investment property that is not held for the production of income might be deductible as investment interest provided the taxpayer itemizes AND the deduction can not exceed investment income.
  • Property taxes (T) for a primary residence or investment property are deductible but only if the taxpayer itemizes deductions. For an investment rental property, T is expensed against rental income.
  • Hazard Insurance (I) is not deductible for a primary residence, but is expensed against rental income for a rental property.




"The fact that stocks didn’t continue their plunge later today was a positive sign, however economists and analysts said a full recovery wasn’t likely in the near term, further rate cut is imminent (possibly another 50 basis point on Jan 30) in hoping for softer recession.

But then again, the REAL question is how many more rate cuts they can continue? Once they run out of the rate-cut ammunition, then what next?"

More cuts, (reality of the situation will kick in at some point , it just has too ) fear will set in…stock market will crash or the fear of a crash, then the fear of inflation and or a slowdown, that will cause a dash to gold & silver, that may result in hyperinflation, at that point the Feds and other banks around the world will be printing money as fast as they can print in cyberland in the attempt to calm fears along with raising interest rates to try to get inflation under control, all the while the holders of gold and silver are selling their positions.