Stock fears lead to gold rush
POSTED: Tuesday, November 13, 2012 - 5:24pm
UPDATED: Tuesday, November 13, 2012 - 5:28pm
Tyler TX — Reports show, many people are choosing to sell assets because of the US heading toward a so-called "fiscal cliff."
A financial advisor from Rose Point Capital, says this is the time of the year when people usually sell assets because it's the end of the year, but uncertainty is causing many to take a long look at selling off a lot more.
Jay Oliver, a Tyler financial advisor, said typically at the end of the year, people will decide whether they want to take gains or losses with their investments. He said, "But particularly sensitive this year with the so called fiscal cliff" and if congress cannot agree on a tax legislation than capital gain taxes are set to increase. He said, "If you were to sell a gain before the year's end, since you get the maximum tax rate of 15%, selling next year the same position might result in taxes as much as 25%."
There's another investment that Oliver and Wayne Clepper, from American Gold and Diamond, say is a "fear driven" factor in times like this. They say, "gold."
Clepper says there are three things that drive the market: a technical aspect, shortages, and emotions. He said, "For the people to come who have never been in the market before, to buy gold and silver now, we offer it more as an insurance policy against the decreasing value of our dollar, as opposed to an investment.
Clepper says when he was in the financial business you were told to have 5-10% in tangible assets and now he is hearing it's 25%.
Financial advisors say the possible increase in capital gains only refers to people outside of retirement plans and that there seems to be no scenario for taxes to be lower next year.