Biden's Tax Hike Could Boost Gold | Touchpoint Update - YouTube

I'm Devlyn Steele Director of Education at Augusta  Precious Metals and this is a Touchpoint Update  

as always remember to like this video and  subscribe for future updates in case you  

haven't noticed the economic environment has been  very fertile for gold and silver over the past few  

years and now there's yet another economic  factor that could push gold and silver even  

higher president Biden last month announced he  would seek a historic increase in capital gains  

tax he wants to see the top rate effectively  doubled from 20 percent to 39.6 percent that's  

for households making 1 million dollars and more  annually why do we care because the negative  

impact of a capital gains tax increase like  that on financial markets could be substantial  

bad news for the economy is often  good news for gold and silver  

in a climate where interest-bearing  assets such as equities are not doing well  

long-term savers often see gold and  silver as having more potential for growth  

the leap in capital gains tax that president  Biden has proposed is unlike any we have ever seen  

the near 100 percent increase from the current  rate is the biggest single jump in the capital  

gains tax in modern US history in my mind  how could it not have a negative impact  

gold and silver are what people often refer to as  a risk off hedge asset when markets sink it's not  

uncommon to see people flocking towards them have  you ever wondered why the precious metals bull  

market has been sustained for more than two years  now I think it's largely because of the heightened  

economic uncertainty along with expansionary  monetary and fiscal policies and really a sort of  

economic soup of risks and threats that  influence what you can earn with your savings  

you hear me talk about this all the time who knows  if we end up seeing a combination of inflation  

interest rates near zero continued high levels  of spending and now a massive increase in capital  

gains tax it will be easy to argue that  it could be a hugely promising scenario  

for precious metals owners who want to see  the bull continue to run over the years  

I feel savers have felt forced into  risk assets in other words equities  

and a lot of them have hung in there based solely  on the fundamental belief in equities but now with  

all these negative economic influences layering on  top of each other I believe you're going to see a  

lot of people getting out of equities and going  towards alternative assets like precious metals  

sure enough after massive spending plan  announcements and tax hikes by the Biden 

administration and the first sign of inflation in  a long time gold and silver have been very strong  

so far in may since the beginning  of this month gold is up 6.5 percent  

and silver jumped 8.5 percent all things  considered I think it's safe to believe  

that we could see the continued development  of the ideal conditions for precious metals  

for more information about what's happening  in the economy and how gold and silver play  

a role go to Augusta Precious Metals website  and sign up for our free guide better yet  

sign up for a one-on-one web conference  with me or a member of Augusta's  

education team we're here to help this is Devlyn  Steele Augusta Precious Metals signing out

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