Silver News

The Mission Of The Silver News Surfer Has Always Been & Will Always Be - To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!


The Do’s & Don’t’s & Their Tax Implications For 2014…

December 16, 2013 8:42 am est

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!

Now, onto protecting your wealth…

 

Big week ahead my friends, a big week. Tuesday & Wednesday presents the last FED meeting for 2013 and the rumors are flying. The main stream media is convinced that the FED will start to cut back on some of the QE (Monetary Policy) wheres the hedge fund managers, the 40 year plus market veterans say there is no way; we will know by Wednesday afternoon.

The man who accurately called that the FED would not Taper in September (when everyone else said they would) came out with the following piece over the weekend – Here Are The Most Frightening Statistics As We Head Into 2014 in it, he  listed some do’s & don’t’s for 2014, he said…

Don’t hold major amounts of cash.  Either your bank will not survive, or there will be a bail-in so investors will lose a major part of their funds.  Don’t think that certain banks are superior.  It’s correct that all banks won’t go under simultaneously, but some of the most exposed banks will last longer than others because governments won’t let them fail.

Another don’t is don’t hold bonds, and especially US Treasuries.  Why?  Because the US government is bankrupt.  The last 32 years the US debt has gone up 17 times, and tax revenues have only gone up 2.5 times.  And for these 32 years there has never been a surplus.  Not one time.

The next don’t is don’t hold paper money, and especially not US dollars.  The reign of the US dollar as the world’s reserve currency is coming to an end.

Another don’t is don’t hold stocks.  The US stock market and most other markets are now at the end of a major long-term bull market, and this will end in a massive bear market.  The debt-induced bubble in stocks is coming to an end.  We might get one final move higher, but after that it’s finished for a very long time.

Finally, don’t have counter-party risk.  A lot of counter-parties will fail.  Therefore, counter-parties must be eliminated.  Obviously there are lots of other ‘don’ts,’ but if investors just follow the ones I have just outlined they will save themselves from ruin.

What about do’s?  Well, precious metals is at the top of that list.  What’s happening now is commercials are turning to the long side.  Recently, bullion banks have added 100 tons of gold to their holdings.  The 4 big US banks are now long 180 tons of gold.  Producers are also long 37 tons.

These are incredibly significant amounts.  Just last week 54 tons of gold was delivered to the Shanghai Exchange.  That’s around $2 billion of gold.  If you annualize that it’s 2,800 tons, which of course exceeds the annual production of gold.

So in my view the gold and silver correction is finished as I indicated last week.  The choppy action we have seen this week is typical of a major turn.  I see new highs for both gold and silver in 2014, with gold about $2,000, and silver well above $50.”

So, what is your Disaster Insurance Ahead of the Dollar Collapse? I’ll tell you who has one… China and the Great Precious Metals Migration, one main reason is because they know The Physical Supply Never Been Tighter  and the supply of printed money is endless – Heck, look how the Bank of Japan Vows to Stick with Easy Money Policy; If It Doesn’t Work, Do More of It. On CNBC over the weekend, I saw how Experts predict a gold bounce soon—here’s why

Switching gears quickly, As we get ready for Santa to stuff our tree and we plan our new year celebrations, there is something you may want to consider before the new year chimes in…

Going, going gone! … a number of tax deductions set to expire – Ready for year-end tax planning? In between holiday parties and last minute shopping, it’s worth making sure that you are minimizing your 2013 tax bill. It’s almost always wise to maximize your deductions, prune losers from your portfolio and fill your retirement accounts as much as the rules allow. But this year is also your last chance to use a large number of tax breaks that are scheduled to expire.

If you are planning on making a lot of big purchases, you might want to go ahead. Disappearing tax breaks aren’t the only thing to watch out for. This could be a big year for capital gains in mutual funds, as many have run through the losses they were carrying over from the financial crisis.

Combine the new taxes on high earners with a hike in the maximum tax rate to 39.6 percent for couples with income over $450,000, and 2013 might be a costly tax year. Sell those loss stocks; consider your final charitable deductions,” he said, adding that you should always make sure to maximize contributions to your IRA or 401(k). Follow these suggestions and you may have something left over for next year’s holiday season.

Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….

Now, onto the breaking news that matters…

  

Silver – A Rigged Market Coming To An End – No one can question the fact that the demand for silver has grown exponentially in the past few years, record sales for American Eagle coins being one small example, record buying in India, another larger example.  Demand has never been greater.  Supply, on the other hand, keeps diminishing.

Whenever there is a situation where demand rises sharply, while supply commensurately declines, it is a recipe for higher prices, and usually, much higher prices.  This is true, unless one is talking about the silver market.  Under the conditions of record rising demand and considerably less supply, the price of silver is at its lowest levels in the past three years.

With talk of silver going anywhere from $150 to $500 higher, it currently struggles to hold $20, why is this so? The answer is not to be found in the myriad supply and demand figures, no matter how cogently presented: as absolute numbers, or dramatically presented graphs, and with so many comparisons to other times/situations.  Facts and figures do not lie.   Politicians and bankers do.

It may be weeks, it may be months, it may even be longer before the manipulators lose control, and they will, as history tells us.  History also tells us it often lasts longer than most people expect.  Buy the physical while you can, even if it takes another year before reality prevails.  Just as one cannot know when a turn will occur, one cannot also know for how long silver will be able to be purchased, in the interim.  Be smart.  Better a year early than a day too late.

Read More Here

If you can find 7 minutes after reading this entire exhausting report, I would encourage you to see this video from Mike Maloney:

Fed To Explode QE Next Downturn – Can’t Control Velocity –