How the New Year’s tax deadline poses a risk for gold, silver and the Dow

Core Viewpoint - The article suggests that investors may want to consider selling appreciated assets before the end of the year to lock in profits, as prices are artificially driven higher due to a lack of sellers during this period [3][4][5]. Group 1: Market Performance - Silver has increased over 150% this year and rose more than 4% on the day after Christmas [2]. - Major stock market indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq composite, have also surged in December, marking a strong finish for the year [1]. Group 2: Seller Behavior - The current market dynamics indicate that sellers are hesitant to sell before December 31, preferring to delay capital gains tax until the new year [3]. - This behavior results in a seller's market for appreciated assets in late December, leading to artificially inflated prices [5]. Group 3: Investment Strategy - Investors are encouraged to consider selling appreciated assets now rather than waiting, as this is a strategic move to take advantage of market conditions [4][5]. - The article emphasizes that delaying capital gains may not yield significant mathematical benefits, given the current risk-free rate of return is less than 4% and declining [6]. Group 4: Tax Considerations - The article notes that individual financial situations vary, and while selling before year-end may be rational for some, it is essential to consider personal tax exposure and financial needs [7]. - December typically presents buying opportunities for assets that have decreased in value, as many sellers seek to realize capital losses for tax purposes [8].