Anybody Buy Gold?

[zekko]

I've often wanted to buy some gold bars or some gold coins. Not so much because I think it's a good investment (although I imagine it is), but I just would like to have some. Diversification in part, but I would like to physically possess some. I don't mean owning gold "on paper", where some financial institution keeps it in their vault for you.

Anyway, one thing that stops me is that I hear there are special laws that apply to precious metals, and I just figured I didn't want to mess with it. Anyone familiar with these laws and how they work? Do they eat into any profits? I'm in the US, to make that clear.

 

[BackInTheGame78]

Nope, despite what people say it's a sh!tty ROI.

 

[zekko]

Nope, despite what people say it's a sh!tty ROI.

I wasn't looking to buy it as an investment. I'd just like to have some, like a leprechaun.

 

[BackInTheGame78]

I wasn't looking to buy it as an investment. I'd just like to have some, like a leprechaun.

Haha, I'm not sure what the allure of gold is in and of itself...but it's been that way throughout human history.

 

[Bible_Belt]

Haha, I'm not sure what the allure of gold is in and of itself...but it's been that way throughout human history.

It's the most useful metal in the world. All the electrical wiring for everything would be gold if it were commonplace. Someday, somebody will discover an asteroid that is solid gold and tow it here.

As an investment, the safest bet would be to do what pawn stores do, which is buy from people who are dumping their own bad investment. A store pays a percentage of meltdown value, 75-90, based upon the current spot price for gold. Coins hold value the best, buying a coin collection for less than spot price isn't too risky, as long as the gold isn't fake.

 

[zekko]

I'm just really wondering what these special laws are regarding the buying and selling of precious metals. It's probably just a matter of keeping some particular paperwork, but I don't like to be bothered with excess annoyances.

 

[Bible_Belt]

I'm just really wondering what these special laws are regarding the buying and selling of precious metals. It's probably just a matter of keeping some particular paperwork, but I don't like to be bothered with excess annoyances.

I can't find any, unless there is something specific to your state. Most states just want their tax money if you make profits. There is a Patriot Act federal requirement to report sales that exceed $10k.

 

[zekko]

I can't find any, unless there is something specific to your state. Most states just want their tax money if you make profits. There is a Patriot Act federal requirement to report sales that exceed $10k.

Maybe I misheard, or misunderstood. Maybe I was hearing about people who deal in precious metals, not simple owners.

 

[FlirtLife]

I'm just really wondering what these special laws are regarding the buying and selling of precious metals. It's probably just a matter of keeping some particular paperwork, but I don't like to be bothered with excess annoyances.

Do you mean the tax impact? Gold is classified as a "collectible", which translates to a max 28% tax rate if held over a year.

Keep the receipt, which is what you paid. When you sell that gold for more than you paid, you owe tax on the gains.

Taxes on Physical Gold and Silver Investments: What You Need to Know

The tax implications for owning or selling stocks and ETFs are straightforward but not everyone understands the tax implications of owning or selling physical bullion.

www.investopedia.com

 

[Reincarnated]

Most of the regulation/restriction on private gold ownership in the US have been repealed since the 1970s. Mostly were Depression era restrictions where the government forced private citizens to sell their gold to the Treasury at a fixed rate, and then manipulated the price of gold to combat the Depression. Pretty interesting topic to read up on. But as others said, any documentation these days is pretty much all about taxes.

 

[zekko]

So it sounds like I am cool to buy some gold as long as I keep the receipts in a safe place.