(Washington, D.C. - March 15, 2001) - A notable group of Members of Congress this week introduced H.R. 991, which would provide capital gains treatment for gold, silver and platinum bullion investment products, in either coin or bar form. H.R. 991 was referred to the House Ways and Means Committee. Companion legislation will be introduced in the United States Senate in the near future.

"We laid the groundwork of providing tax equity for precious metals investment products with the introduction of similar legislation during the last Congress," said Paul Bateman, President of the Gold Institute. "Unfortunately, last year's political climate did not produce an appropriate tax vehicle to attach the bill. However, we are encouraged by President Bush's commitment to across-the-board tax cuts to stimulate the economy, and look forward to working with both the Administration and Congress on behalf of precious metals investors," Bateman added.

Congressman J.D. Hayworth (R-AZ), a member of the House Ways and Means Committee, and eleven additional Congressmen introduced H.R. 991. The bill provides capital gains treatment for precious metal bullion investment products, including bullion coins and bars. 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 H.R. 991. 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.

Additional cosponsors of H.R. 991 include, Rep. Jim Gibbons (R-NV), Rep. David Dreier (R-CA), Rep. Ken Calvert (R-CA, Rep. Steve Largent (R-OK), Rep. Don Young (R-AK), Rep. Bob Schaffer (R-CO), Rep. Chris Cannon (R-UT), Rep. Butch Otter (R-ID), Rep. Bob Stump (R-AZ), Rep. Pete Sessions (R-TX), and Rep. Ron Paul (R-TX).

A copy of H.R. 991 can be obtained by contacting the Gold Institute at (202) 835-0185.

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