1kilo gold bar OR 2300oz silver?

[NorthCarolinaLiberty]

Buying more than $10,000 at a time can trigger reporting requirements and government forms to fill out. https://www.golddealer.com/investment-guides/reportable-bullion-cash-transactions/

Posted not as a service to anybody here, but furiously looking for any little thing to discourage people here.

 

[kfarnan]

The gov. taxes large gold bars.

 

[osan]

Your thoughts?

Lets just say I was in the market to unload some cash. Would you go 1kilo of Gold ~$19,400 OR an equal value in silver, which is around 2300 oz's of silver.

Silver, hands down.

BTW, if you want to buy gold in such quantities, it would behoove you to buy casting shot. It is the closest to the commodity price you are likely to find, beside what an ignorant and mostly senile grandma might ask.

 

[helmuth_hubener]

Lord Xar, what would be your purpose/reasoning for your purchase?

Seeing as how you have not shared your objective, I cannot give you good advice at this time.

 

[helmuth_hubener]

But thank you for the thread, to get people thinking about buying gold or silver! Which is a good thing, in my opinion.

 

[oyarde]

But thank you for the thread, to get people thinking about buying gold or silver! Which is a good thing, in my opinion.

I do it daily , because it is fun .

 

[Zippyjuan]

The gov. taxes large gold bars.

Metals are taxed as "collectables" which has a 25% tax rate on profits vs as low as ten percent for long term capital gains. Your state may add sales tax on the purchase too.

 

[kfarnan]

Not all metals are taxed. Only certain weights and amounts are reported in 1099B. Just telling bold lies.

 

[MallsRGood]

Silver, as its undervalued relative gold based on the GSR.

 

[kfarnan]

Metals are taxed as "collectables" which has a 25% tax rate on profits vs as low as ten percent for long term capital gains. Your state may add sales tax on the purchase too.

You must love being taxed.

 

[Zippyjuan]

You must love being taxed.

Why?


http://www.marketwatch.com/story/the-tax-implications-of-owning-gold-2015-07-15

The tax implications of owning gold

Tax implications


There are no tax-law restrictions on an individual having direct physical ownership of precious metal coins and bullion. Believe it or not, however, these assets are considered collectibles for federal income tax purposes (just like Beanie Babies). As such, any net long-term capital gains when these assets are sold by an individual taxpayer are subject to a maximum federal income tax rate of 28%, instead of the standard 20% maximum rate on long-term gains.

Here’s how the 28% maximum rate deal works. If you are in the 28%, 33%, 35%, or 39.6% federal income tax bracket, net long-term gains from collectibles, including precious metal assets, are taxed at 28%. However, higher-income folks may also owe the dreaded 3.8% net investment income tax. If so, the maximum effective federal rate on long-term gains from precious metals can be 43.4% (39.6% + 3.8%).

If you are in the 10%, 15%, or 25% bracket, your net long-term gains from collectibles, including precious metal assets, are taxed at your regular rate of 10%, 15%, or 25%. In these brackets, you don’t have to worry about owing the 3.8% net investment income tax.

ETFs too.

Precious metal ETFs and mining stocks held in taxable accounts

Long-term capital gains from selling precious metal ETF shares held in an individual’s taxable brokerage firm account are subject to the 28% maximum federal income tax rate rather than the standard 20% maximum rate. Why? Because the gains are considered to be from selling collectibles. Short-term gains are subject to a maximum federal rate of 39.6%. Gains may also get hit with the 3.8% net investment income tax. Finally, state income tax may also apply.

Long-term gains from selling mining stocks held in a taxable brokerage firm account are subject to the standard 20% maximum federal rate. Short-term gains are subject to a maximum federal rate of 39.6%. Gains reaped by higher-income folks may also get hit with the 3.8% net investment income tax, and state income tax may apply too.

The bottom line

The important thing to take away from this story is that your profits from taxable investments in precious metal coins, bullion, and ETFs could be taxed at a higher-than-expected rate. That doesn’t make acquiring some of these assets a bad idea, but it’s something to think about before you decide to pull the trigger. Another option is using your tax-deferred traditional IRA or tax-free Roth IRA to invest in precious metal assets.

 

[helmuth_hubener]

I do it daily , because it is fun .

Indeed, it is.

 

[kfarnan]

They didn't mine it, store it, hold it, or sell it. Why do they get anything?

 

[Dr.3D]

They didn't mine it, store it, hold it, or sell it. Why do they get anything?

Because they don't want you to have a way to beat inflation.

 

[Superfluous Man]

Why?


http://www.marketwatch.com/story/the-tax-implications-of-owning-gold-2015-07-15



ETFs too.

I'm not gonna say who I'm talking about. But I know a guy who knows a guy who knows a guy who bought precious metals and later sold them and made money and didn't report it, and the government had no way of knowing he did it.

 

[oyarde]

I'm not gonna say who I'm talking about. But I know a guy who knows a guy who knows a guy who bought precious metals and later sold them and made money and didn't report it, and the government had no way of knowing he did it.

It is like magic .

 

[kfarnan]

I'm not gonna say who I'm talking about. But I know a guy who knows a guy who knows a guy who bought precious metals and later sold them and made money and didn't report it, and the government had no way of knowing he did it.

Don't tell zippy who it was..

 

[Zippyjuan]

I'm not gonna say who I'm talking about. But I know a guy who knows a guy who knows a guy who bought precious metals and later sold them and made money and didn't report it, and the government had no way of knowing he did it.

Did the transaction meet the reporting requirements (which are pretty high)? More details on them:

Unfortunately, some squeamish dealers report more customer transactions than the law actually requires. At Money Metals Exchange, we have examined the law very closely and therefore do not report the purchase of metals about 99.997% of the time, with one extremely rare exception. For a disclosure requirement to be triggered, BOTH of the following conditions have to be met:

The transaction is (or related transactions are) larger than $10,000 in size, AND

Payment is made using actual cash (i.e. Federal Reserve notes and U.S. coins) or with two or more cash instruments (defined as money orders, cashier's checks, or traveler's checks) which, individually, are $10,000 or less but when totaled together equal more than $10,000. Personal checks, debits, bank wires, and credit card payments are NOT considered cash or cash instruments, and, therefore, purchases using them do not trigger disclosure by a dealer regardless of their amount(s).

The IRS disclosure document involved is called Form 8300, and it's applicable to all cash transactions in the broad U.S. economy meeting the above conditions – not just precious metals transactions. To date, Money Metals Exchange has completed over 300,000 transactions, and we have been required by law to file Form 8300 fewer than ten times.

Money Metals maintains your privacy to the best of our abilities

Likewise, we must report the SALE of your precious metals only in extremely rare circumstances: Of all retail silver products, only pre-1965 "junk" silver coins are arguably subject to reporting on IRS Form 1099B, but only in quantities of $10,000 face value or more – more than $125,000 of current silver value. Sales of silver bullion rounds, 10-ounce bars, and 100-ounce bars do not trigger a Form 1099B filing requirement.

Sales of gold bars that are each smaller than one kilogram (32.15 ounces) absolutely do not trigger a 1099B – nor do sales of U.S.-minted gold coins such as the American Eagle. However, sales of certain one-ounce foreign-minted gold coins (Krugerrands, Maples, and Mexican Onzas only) currently require a 1099B when a customer sells 25 ounces or more.

And finally, sales of platinum bars larger than 25 ounces and palladium bars larger than 100 ounces trigger a 1099B.

 

[Superfluous Man]

Did the transaction meet the reporting requirements (which are pretty high)? More details on them:

The guy says the transactions did not meet any reporting requirements.

Somehow, he still managed to pull off this amazing feat.

 

[shakey1]

Precious metals price manipulation makes gold & silver (especially silver) a good investment... values will eventually reset when the market bubble pops its cork.