Gold News: Alabama Cuts Its Gold Taxes

Today in gold news, Alabama Senate Bill 156 would remove taxes on gold sales in the state.  The idea is to reduce reliance on US dollars, which are prone to ever-decreasing value. In addition, many in the state believe the move will generate much more revenue than the $200,000 collected in taxes on gold sales last year; Alabama taxes are high enough that big travelling coin shows skip the state.  

Proponents believe eliminating the tax on gold will both encourage sales of coins and small bars used as a store of value, and increase commerce through more business coming to Alabama. Taxes on jewelry and other “end uses” of gold would remain, only “monetary” forms of gold would be exempt from tax. Proponents of the idea also point out that gold maintains its value over time, unlike currencies like the US Dollar or the British Pound.

The Pound, as recently noted by the founder of Glint, has lost over half its purchasing power since 1990 – which may explain why it feels like things just cost a lot more these days. You can read more about Alabama’s bill and how it’s faring in today’s featured article here.  Of course this Gold Enthusiast thinks it’s a great idea, and hopes it spreads.

 Related: These 3 Banks Face Charges for Manipulating the Gold Market

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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