GST on Silver - what if?

Gday guys, we know the government is toying with broadening the GST base or possibly raising it, doesn't mean they will tax silver (tho I would never put it past them) anyway dont want to argue that point, what I would like to ask stackers is,

" Would you still buy silver if it was subject to GST"?

Going on the scenario of the Australian Gov following Europe's Tax legislation of Silver being taxed and Gold being tax exempt, would you still buy silver or simply become a gold bug?

Personally I would give silver the boot and stick with gold.

If silver was capital gains tax exempt after a GST had been introduced would you still consider investing in it?

Iam interested in seeing or having some insight into the market if such a scenario was introduced.

Cheers all, Ice

 

I would cease buying also and stick to gold.

 

what if they also ( and it would be likely if silver was hit with it ) added the GST to gold as well?

 

I wouldn't buy silver or gold with GST unless it was maybe 10% below spot.

 

I would be happy
Everyone's physical stack would increase in value.

 

Do we then sell our silver and buy gold if gold is GST free?

 

Yeah it's across the board so fine. also maybe a smart operator would do something like a layby where as everyone puts in huge silver orders before the tax came in and pay it over the year without gst but maybe a 3% premium..

But I wonder, sure we have some older retired members who don't have ABNs and lodge BAS anymore so would they have to just for selling a few coins a year?? Not worth chasing it for the ATO.

Also bullion would have to be exempt from it as a commodity, they don't charge gst on Grains or Steel

 

No reason to switch unless the gsr is in your favor.
If you are selling your silver on this forum or at a Sydneystacker meet; just price it a little lower than the dealer's GST loaded silver.

 

Wouldn't it be a backyard flipper's wet dream? Load up in the weeks prior to the introduction of the GST and then sell it for an easy 10% profit?

 

No doubt the NZ Government IRD would follow suit if introduced in Aussie but our GST here is 15% which would hurt

If they don't I could buy up large from here and bring it over to a stackers meeting to share at reduced rates with you all if it comes to fruition

Just a thought

 

I guess it would still partially depend on the GSR, except it would now be the Gold to 'Silver +10%' Ratio.

I think that I would probably switch to gold though, it would be like getting a discount to buy one precious metal over another. If I buy it unallocated I will be able to spend the same amount as I was on silver per week.

I would probably still buy junk silver coins, world junk silver etc. but I think I would probably not bother with most of the series, koalas, Kooks, Lunars etc. Not collecting them anyway.

I might sell off some of the silver at the 10% extra price and buy some gold with it.

But yes, I would stop buying silver, I didn't buy any while I lived in the UK because of the VAT. Buying silver is a way of protecting my money from theft, if I give the gov an extra 10% then I am not doing a very good job of protecting it.

 

The whole of a story matters.
A price is a story written by a number of elements.
Each element has a certain weight in the stories conclusion.
Tax is one.
What is its weight, in the whole?
That's the question that matters when deciding. Not the 1:0 flag indicating presence or not presence of tax.
Governments raise tax.
Governments also buy gold in recent years.
By doing so, they drove the price of gold higher.
What's the difference with tax?

 

Sad but true, rich people are allowed to invest in precious metals tax free but anyone else who tries will be penalised.

Granted you can get smaller and smaller gold coins but you end up paying higher premiums, but at least you save the tax.

 

All good until you get hit with capitol gains tax!!! It would have to be removed if a GST was introduced altho government aint that smart and greed rules legislation when it comes to their slush fund.

Thanks for all the reply's so far.

 

I believe the spot value of a stack will increase by 10% should GST be imposed, but I doubt if the premium would increase. I think the premium would more likely absorb the 10%, leaving the seller with diminished returns.

 

what if u only buy second hand stuff? no gst,right? problem solved? ...

 

Isn't GST a tax on consumption? It shouldn't be applied to investment. Is there GST on fine art? Will there be GST on share trading?

 

Legal tender cannot incur a gst tax Just buy legal tender to stack and sell old non legal tender silver plus 10% and gain 10% without even looking at a price chart

 

Dont think so, all the proof coins, numismatics, glided coins from perth mint are legal tender and yet they have GST