Comment by PaywallBuster
14 hours ago
You bought it once at X price, it's realized when you sell it, it's unrealized while "open"
If they held it for 100 years and finally sold it, then profit/loss is realized now
14 hours ago
You bought it once at X price, it's realized when you sell it, it's unrealized while "open"
If they held it for 100 years and finally sold it, then profit/loss is realized now
But then they bought it again. They had 129 tons of gold, and now they still have 129 tons of gold. Where does the realised gains come from?
They "realized" it just for a short time.
From paper shenanigans. Don't expect accounting spreadsheets to perfectly mirror real life. Most of the financial economy is kayfabe.
Let's say I bought a 100-ounce gold bar in 1965, when gold was $35/oz, for a total price of $3500. Let's say I sold it today at $4700/oz, for a total price of $470,000. That gives me a gain of $466,500.
And let's say that I regret it. I decide that I really want to hold some gold, so I take the $470,000 and buy another 100-ounce gold bar.
The situation was that I had a gold bar worth $470,000 with a taxable basis of $3500. Now the situation is that I have a gold bar worth $470,000 with a taxable basis of $470,000, and I owe the IRS taxes on $466,500 of capital gains.
TL;DR: Selling and re-buying the same asset gives you the accumulated gains, and resets the price basis.
The variation in gold prices in the time they carried out this exchange process.
So they had 129 tons of gold, and now they have 129 tons of gold and 11 billions of euros? Sounds like a good deal if so.
Edit: wtf is going on with you for downvoting a question…
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