Well, we're back once again with a two-part article that contains some really good news that most West Virginians might not know yet! What's that you might ask? There's NO MORE sales taxation on precious metals effective July 1, 2019--more specifically, on gold, silver, platinum and palladium bullion and coins. First, the West Virginia Senate unanimously passed SB 502 introduced by State Senator Craig Blair. From there, it was overwhelmingly passed by the legislature and sent to Governor Justice for his signature. July 1, 2019 marked the end of sales tax on gold and silver coinage, which was primarily the focus of our first series of articles. This new law impacts purchases of platinum, gold, palladium, or silver bullion valued upon its precious metal content, whether in coin, bar or ingot form.
Under the old tax system on gold and silver coins, it was tantamount to asking for change on a $20 bill at a business establishment and being hit with an 80% tax! The Constitution set the law and standard on this country's coinage:
U.S. Constitution - Article 1 Section 10
-- No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title if Nobility.--
Imagine our forefathers putting up with a tax on the purchase of sound money. The intrinsic value of sound money was always meant to be transacted on a ONE for ONE basis with NO taxation on it. For those West Virginians who may be possibly sitting on the fence, what better time than now to invest in real money or start a gold and silver coin collection of their very own.
There are benefits of this hobby in addition to investment purposes, and some of them follow:
1) Make some money...that's right, believe it or not, coin collecting can be lucrative. Not only do many coins gain value, you will likely get all your outlay back if you decide later that the hobby is just not for you. One cannot say that about most investments or hobbies.
2) The sheer beauty and rarity of coins, such as, the Silver Eagle, Saint Gauden's $20 gold piece, or Indian Head gold coins are gorgeous pieces. These are a few of the beautiful coins that have been designed and coined during this country's history. Not only that, but some are even quite rare in the series and rather valuable.
3) The history that can be learned from coin collecting is truly a one of a kind experience. For example, the Silver State Quarter program, Indian Head gold pieces and different varieties of Lady Liberty gold and silver pieces have their own unique stories when learning about the designers that created them. Historical facts, culture and politics of the time period can also be learned.
4) Many younger readers may not know, but this country's coins other than pennies and nickels, were 90% silver before1965. Some series of nickels had silver in them as well. This fact alone makes them more valuable than their face value. Of course, the more expensive gold is recycled, but silver is consumed. These certainties can insure the argument for a future increase in value.
5) If for no other reason than currency and coinage being discontinued in the future, coin collections will be an heirloom that will only increase in value. Currently, there is a huge movement examining and producing cryptocurrencies and cashless societies worldwide. A physical coin collection would be a worthwhile investment and heirloom for any family to consider. In addition, the initial size of the investment now, can be a big as you want or even as small as one can afford when starting and maintaining a coin collection!
6) Hobbies are very important for getting away from everything. The quiet time and stress relief of coin collecting is a reward in and amongst itself. I would encourage anyone to just try it. The fun and accuracy of coin collecting can be like entering your very own little rewarding world for a bit.
If your interest is piqued, The Bronze Look is the place to start. The staff is courteous, knowledgeable and ready to help. Over the past two weeks alone, I have witnessed some incredible Indian Head gold pieces come into the store, and consequently FLY out of the shop. The condition of these beautiful coins is exquisite, and it is no wonder they didn't last long!
Stop in or give them a call today. It might just put you on the path to something very rewarding, both physically, mentally and financially. Oh, and did we mention there's NO SALES TAX?
Part Two of this series will deal with what other States, besides West Virginia, are doing on the gold and silver front