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Gibraltar tries to lure London hedge fund bosses with promise of low taxes

"Gibraltar is launching a campaign to persuade hedge funds to ditch their plush Mayfair offices for the low taxes of 'the Rock'. Last week hedge fund managers were invited to the peninsula where they were told income tax could be limited to £30,000 a year no matter how many millions they earned. Gibraltar also boasts no VAT and social security payments of just £120 per family a month. In the UK the top rate of income tax is 45%, VAT is 20% and national insurance is levied at 14% of weekly earnings above £797. Corporation tax on activities undertaken on the rock is levied at 10%, compared with 24% in the UK." Continue reading →

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Andorra bows to EU pressure to introduce first-ever income tax

"Antoni Marti, the head of government of the tiny mountain nation, announced the move on Friday during a Paris meeting with French President Francois Hollande. A bill would create a tax on personal income as part of an effort to 'progressively bring its tax system in line with international standards'. There is currently no income tax applied to individuals based in Andorra, but the country did introduce a modest corporate levy for the first time last year and a system of Value Added Tax from January 2013. Andorra, with its population of 85,000, has relied on banking secrecy, tourism and duty-free trade to become a financial and commercial success." Continue reading →

Continue ReadingAndorra bows to EU pressure to introduce first-ever income tax

Thriving UK Housing Market Creates 77,894 More ‘Millionaires’ Last Year

"More than 300,000 British homes are worth over £1 million pounds ($1.5 million), up 32 percent on last year, according to a property 'rich list' out on Friday. Furthermore, the number of streets where the average property value is over £1 million jumped to 8,230. Unsurprisingly to those familiar with England's expensive capital, London was home to all 20 of the country's most expensive streets. Despite the U.K.'s anemic economy, property prices have continued to rise, fueled by easy monetary policy, housing shortages, and government schemes to make home-buying more affordable." Continue reading →

Continue ReadingThriving UK Housing Market Creates 77,894 More ‘Millionaires’ Last Year

U.S. banks eye metal storage exit

"JPMorgan Chase and Goldman Sachs are seeking to sell their metal warehousing units just three years after their controversial entry to the industry. The two US banks got in to the niche warehousing business in 2010 at a time when a build-up in stocks following the financial crisis had triggered a boom for storage companies. But their ownership of warehouses struck a nerve when metal users began complaining that warehousing companies were profiting from bottlenecks in the system that have distorted prices. The Federal Reserve is also weighing whether banks should even be allowed to own physical commodities infrastructure, such as warehouses." Continue reading →

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Swiss thousand-franc note is a hidden treasure

"Swiss banknote circulation is the second highest in the world behind Japan and more than double that in the United States or the euro zone. Swiss National Bank spokeswoman Silvia Oppliger explains this by the fact that holdings and use of cash remain popular, and that many people still withdraw cash in order to pay their bills at the post office counter. 'People consider using banknotes to be very practical. Also, the wish for privacy has always been high in Switzerland,' Oppliger said. 'Using cash for payments is one manifestation of this.' Switzerland so far has no plans to investigate the use of its CHF1,000 note, let alone discuss its abolishment." Continue reading →

Continue ReadingSwiss thousand-franc note is a hidden treasure

Gold Deliveries From Shanghai Bourse Jump on Physical Demand

"Physical gold delivered to buyers by China’s largest bullion bourse in the first half of this year almost matched the entire amount taken from its vaults in 2012, and was more than double the country’s annual production. The surge in deliveries underscores buying interest in China, which may pass India as the largest bullion consumer as early as this year after the government in New Delhi raised import taxes while regulators in Beijing made investing in the metal easier. Miners, smelters and refineries are required to sell gold via the Shanghai bourse, the only state-sanctioned marketplace for spot bullion in China." Continue reading →

Continue ReadingGold Deliveries From Shanghai Bourse Jump on Physical Demand

Gold Diverging From Fine Wine as Bullion Investors Lose Faith

"The Liv-ex Fine Wine 100 Index (LIVX100) tripled in the past 10 years and gold advanced fourfold. The wine gauge rose 5.9 percent this year as bullion slid 17 percent. The Wine Investment Fund, which manages about $50 million of assets, expects the Liv-ex gauge to rise by about another 7.6 percent by the end of December. Demand for gold, wine and other alternative assets gained in the past several years as equities retreated and bond yields tumbled to record lows as central banks printed money on an unprecedented scale. Gold held through exchange-traded products exceeded all but two of the world’s central-bank reserves." Continue reading →

Continue ReadingGold Diverging From Fine Wine as Bullion Investors Lose Faith

India finance minister to countrymen: Contain ‘uncontrolled passion’ for gold

"Finance Minister P Chidambaram today asked countrymen to contain their 'uncontrolled passion' for gold and instead save in financial instruments. 'Have faith in our financial sector. Unfortunately, we have difficulty shedding our old habits and put our money in gold,' he said while speaking at an event to mark the platinum anniversary celebrations of state-run Dena Bank. 'The uncontrolled passion for gold must be contained,' Chidambaram said. People should rather switch to financial products to funnel their savings, the Minister said and added the soon to be launched inflation indexed bonds is a very lucrative option." Continue reading →

Continue ReadingIndia finance minister to countrymen: Contain ‘uncontrolled passion’ for gold

Granny’s Gold Bars Are Key to Vietnam Push to Boost Dong

"The target of Vietnam’s campaign to stabilize its currency is in the locked bedroom wardrobe of retired civil servant Vu Thi Huong: gold bars. Huong is among millions of Vietnamese who hold an estimated 300 tons to 400 tons of bullion to store their wealth -- valued at as much as $19 billion at domestic prices and equal to official U.K. holdings -- a legacy of more than a century of war, revolution and economic turbulence. The central bank wants to convert the hoard, much of it smuggled in, into dong deposits to strengthen the currency, which has slid 21 percent against the dollar in five years." Continue reading →

Continue ReadingGranny’s Gold Bars Are Key to Vietnam Push to Boost Dong

‘No Longer Necessary’: Hungary Wants to Throw Out IMF

"A long-running dispute between Hungary and the International Monetary Fund escalated on Monday when the head of the country's central bank called on the IMF to close its office in Budapest, saying it was no longer needed. On Monday, central bank chief Matolcsy said Hungary would repay the 2008 loan in full by the end of this year. He said the government had succeeded in pushing its budget deficit below the EU ceiling of 3 percent of GDP. Matolcsy is the architect of Orbán's unorthodox economic policy which is based on imposing heavy special taxes on large companies. He became central bank governor four months ago." Continue reading →

Continue Reading‘No Longer Necessary’: Hungary Wants to Throw Out IMF