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PRECIOUS METALS
What are precious metals? Precious metals are rare metallic
chemical elements of high economic value. Precious metals are less reactive than most elements, have high luster, and have
high electrical conductivity. Although precious metals have industrial uses the main demand comes from investors seeking safe
haven stores of wealth. Futures contracts on the regulated commodity exchanges are a way to get positioned to trade precious
metals.
Some futures contracts may offer tax advantages over competing
exchange traded funds (ETF). Gold ETFs buy gold bullion, which is treated by the Internal Revenue Service (IRS) as a precious-metal
collectible and taxed at 28%. By contrast, the general tax treatment for gold futures is that 60% of gains (or losses) are
considered long-term capital gains, and 40% of gains (or losses) are short-term capital gains. This blends to a maximum federal
income tax rate of 23%. Consult with your CPA regarding your personal tax situation, and the tax ramifications of futures
trading.
Click here to contact a licensed commodity broker to discuss market opportunities.
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