MONEY: A dollar is worth a dollar, except when the dollar is a gold coin

http://federalism.typepad.com/crime_federalism/2009/06/are-gold-american-eagles-worth-what-congress-has-said-they-are-worth.html

June 16, 2009
Are Gold American Eagles Worth What Congress Has Said They Are Worth? Or: The IRS v. Robert Kahre

*** begin quote ***

[Editor’s note: I am not a tax protester. Until researching the issue that is subject to this blog post, I thought all of the arguments raised by the tax protester crowd were frivolous. On this issue, I am not so confident.]

Take a look at this gold coin. It’s a Gold American Eagle. Look at the image on the right. Do you see what the coin says on the bottom half, underneath the nesting baby eagle?Gold American Eagle 50 Dollars

It says $50, right?

Indeed, it is (as I will explain below) $50. It’s worth as much as an Ulysses S. Grant. Well, if you believe it’s really only worth $50, send all of your Gold Eagles to me. I will sell them on eBay for about $1,000 each.

And now you can see the problem of Robert Kahre. Mr. Kahre is facing federal prison because he claimed that Gold Eagles are worth what Congress has said that Gold Eagles are worth.

Is Mr. Kahre’s position frivolous? I don’t think so. Please indulge me.

*** end quote ***

I blogged about this one.

*** begin quote ***

http://reinkefaceslife.com/2008/02/26/goldbug-why-buy-and-hold-gold/

(4) There are some interesting nuances in holding American Gold Eagle, which are produced by the gooferment (i.e., the Treasury Department’s Mint), and are asserted to be dominated in dollars. The one ounce gold American Eagle is stamped 50 “dollars”. AND, it is really worth ~940 “dollars” in Federal Reserve Notes. (There’s a recent tax case where the employer declared his employees earnings in “dollars” as represented on the Eagles he gave them. Everyone paid less taxes.)

*** end quote ***

This is an interesting quirk that can be exploited.

Of course, at your own risk.

Sigh, what is a dollar anyway!

# # # # #

Comments are closed.

Follow

Get every new post delivered to your Inbox.

Join 1,047 other followers

%d bloggers like this: