(Washington, D.C. - June 11, 2001) - On Friday, June 8, Senator Harry Reid (D-Nevada), now the Assistant Majority Leader, and Senators' Wayne Allard (R-Colorado) and John Ensign (R- Nevada), introduced S.1007, the Fair Treatment for Precious Metals Investors Act. If enacted, S.1007 would provide capital gains treatment for precious metal bullion investment products, including bullion coins and bars. Twelve leading Congressmen introduced similar legislation, H.R. 991, in March of this year.

"With the introduction of S.1007, precious metals investors are one step closer to receiving capital gains tax parity with investors in stocks and mutual funds. We are hopeful that Congress will address this inequity in the tax code and we look forward to working toward that goal with the 107th Congress," said Paul Bateman, President of the Gold Institute.

Bullion coins are legal tender coins, issued by government mints, and are distinct from numismatic coins prized by collectors. Bullion coins bear a face value that is largely symbolic; its true value depends on the metal content and the day-to-day changing price for the metal. Bullion coins provide the investor with an economical way to make precious metals investments for diversification and portfolio protection purposes. Bullion coins are manufactured in large quantities and in a standardized uniform manner, making them fungible, or interchangeable with each other.

Some popular bullion coins include the American Eagle, the Australian Kangaroo Nugget, the Canadian Maple Leaf, the South African Krugerrand and the Austrian Philharmonic. Congressionally authorized by the Bullion Coin Act of 1985, American Eagle bullion coins have become one of the world's leading bullion investment coins.

Bullion bars are also covered under S.1007. Bullion bars come in a wide range of sizes, and their weight is measured in troy ounces or grams. Bullion bars are typically sold at a low premium above the bullion price and can be purchased from select commercial banks, brokerage houses and precious metals dealers. Bullion products are liquid investments, with a global 24-hour market.

For Further Information Contact:

Mike DiRienzo
The Gold Institute
1112 16th Street, N.W., Suite 240
Washington, D.C. 20036
Tel: (202) 835-0185
Fax: (202) 835-0155
E-mail: info@goldinstitute.org