(Washington, D.C. - June 7, 2000) -- Four United States Senators yesterday introduced S.2678, which, if enacted, would provide capital gains treatment for gold, silver and platinum bullion investment products. Companion legislation to S.2678, H.R.4170, was introduced in the House of Representatives in April, and has received additional cosponsors since its introduction.

Senator Richard Bryan (D-Nevada), a member of the Senate Finance Committee, Senator Frank Murkowski (R-Alaska), Chairman of the Energy and Natural Resources Committee, Senator Harry Reid (D-Nevada), Assistant Minority Leader/Whip, and Senator Wayne Allard (R-Colorado), a member of the Banking, Housing and Urban Affairs Committee, jointly offered the bill.

"This bipartisan legislation now puts precious metals investors one step closer to gaining the same tax treatment now afforded to investors in stocks and bonds. We will work closely with the House and Senate to include capital gains fairness for the precious metals investor in any final tax package that moves this session," said Paul Bateman, President of the Gold Institute.

Both bills provide 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 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 both bills. 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.

The Gold Institute is an industry association headquartered in Washington, D.C.

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