Silver Investor: This Week's Economic Update

Published: Sat, 10/08/11

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What's Inside:

Question of the Week
Article of the Week
Video of the Week
Audio of the Week

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Question of the Week

Question:

David,

I just got back from my accountant and got quite a shock. I did quite well last year trading AGQ. I did not realize though that I would get a K1 (a partnership tax form) from them and that my taxes would be based upon my basis in the partnership and not simply my gains from trading.

What happened was that at year end I had a huge gain inside the partnership. I did not "realize" those gains in my trading account, however, as I held the shares over into 2011. Now I am faced with an enormous tax bill for 2010, and I will have a carryover capital gains loss for 2011. Bad for me, because I will not have huge gains in 2011 due to the down market in silver. In the end I will have to pay much more in taxes for 2010 and have a useless carryover loss for 2011.

I'd advise your readers to explore these tax practices before getting into ETFs set up as partnerships. In the case of AGQ it will cost me a year's income...no joke...

Answer: We stay away from "tax advice" and we have talked about the drawbacks of ETFs in general. Quite frankly, I think I was the first to mention this when the SLV was launched.

Sincerely,

David Morgan

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Article of the Week

Demand for Wealth Preservation Ensures Gold's

old will continue rising in value over the coming years for one reason: The primary buyers are purchasing physical gold for wealth preservation, and there simply isn't enough physical gold to satisfy their appetites. The recent pullback was by no means the bursting of the gold bubble. Bubbles are characterized by months of extended exuberance and consistently higher highs--not the two- and three- hundred-dollar corrections we've seen twice in the past few weeks. Such pullbacks are healthy as they indicate gold has much, much farther to go.

You can read the rest of artice here...

http://bit.ly/qTVEfH

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Video of the Week

David Morgan Displays Old Glory Mint Products During TV Interview

David Morgan was interviewed on KSL-TV in the Salt Lake City market, regarding gold and silver, the Utah Legal Tender Act (the Utah Sound Money Act), and recent volatility in the precious metals markets. During the interview, he displayed Old Glory Mint products.

You can view the video here...

http://www.youtube.com/watch?v=_919lk6P1pw

David Morgan on Silver's Future

Al chats with the Silver Guru, David Morgan, on the turbulent markets and what it all means for the future of the white metal, Silver.

You can view the video here...

http://www.kereport.com/2011/10/01/david-morgan-silvers-future/

Greece Default Inevitable, Case for Gold & Silver Stronger Than Ever.

October 7, 2011 -- "You cannot fix a massive debt problem by increasing the debt." In this week's Currency Countdown, Tracy Weslosky CEO of Pro-edge Consultants interviews David Morgan of Silver-Investor.com about Greece and the impact on the Euro, the Banks and the market. David says: "This is a troubled time...and again, there isn't any real solution coming to the fore with 'we are going to fix it'...the solutions that are being proposed are non-solutions, unfortunately."

You can view the video here...

http://bit.ly/o4kTz9

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Audio of the Week

This Week in Money

You can view the audio here...

http://talkdigitalnetwork.com/2011/10/week-money-35/

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Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader. Stone Investment Group is not and does not profess to be a professional investment advisor, and strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision. Stone Investment Group and/or independent consultants or members of their families may have a position in the securities mentioned. Mr. Morgan does consult on a paid basis both with private investors and various companies. Investing and speculation are inherently risky and should not be undertaken without professional advice. By your act of reading this independent market research letter, you fully and explicitly agree that Stone Investment Group will not be held liable or responsible for any decisions you make regarding any information discussed herein.

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