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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: James R. Barrett who wrote (14673)	7/19/1998 11:18:00 PM
From: long-gone	Respond to of 116764

Hey Jim, How about this news, This along with the news that many are having less faith that the new Euro will survive for 5 years, will show you where the next wave of gold ownership may come from. Europe....: EU To Adopt Law to exempt investment Gold From VAT Reuters - July 9, 1998 European Union legislation to exempt investment gold traded anywhere in the 15-nation bloc from value-added tax will now be adopted after Italy formally lifted its objection at a meeting in Brussels on Wednesday, officials said. However, the timing of the final adoption of the legislation was not yet clear as two countries have to consult national parliamentary committees on European affairs before they can sign up to the text. "It will be adopted once two parliamentary reserves are lifted: one French, one Danish," one official said. "It's not completely sure that this can be done before the (EU's August break) because of the parliamentary procedure in these two countries. But on the substance there is agreement." The new legislation will exempt traded investment gold, defined as having a purity of 995/1000 and coming in bar or wafer form with a refinery stamp, from value added tax. Gold coins are also deemed to be investments free of VAT if they were struck after 1800 and their value does not exceed 180 percent of the value of the gold they contain. The legislation sets safeguards so that if investment gold is on-sold to jewelry makers, or other users of industrial gold, it becomes liable for VAT and the onus is on the buyer to pay and declare the tax. The present system in some countries, such as Britain, where it was the seller of the gold who had to declare VAT, had led to widespread evasion by fraudsters buying tax-free gold in one country and selling it in another and not declaring the tax. When adopted, the VAT law will contain a declaration committing the EU to "come to an agreement in order to remove all remaining obstacles which exist and continue to act as a barrier to a single market in all precious metals including gold," one official said. Remember what I told you about faith & trust, well, in Europe, the people have had to endure a worthless currency many times during history. They may well be smarter than we are. They have over time shown a desire to not invest in stocks. They will deal(barter) from one day to the next in the currency of the day, but they will "save" in gold. rh