There Will Be Taxes on Gold & Silver

Silver Vigilante In the gold and silver markets, taxes and the IRS are just as certain as banker manipulation and numismatic scams. Rightfully so, many individuals concern themselves with tax and privacy issues when buying and selling gold and silver. Indeed, in the United States today, an individual who profits on a precious metal purchase is on the hook with the IRS for 28% of that profit. As demonstrated here, it is much worse in other countries. Furthermore, as most bullion retailers are under the Patriot Act considered “dealers,” they then have to conform to the standards of a bank in many cases. This means they must collect sensitive data in the case of IRS inquiries. To boot, much of the Patriot Act is marred by bureaucratic technicalities and so unclear to the public. Some precious metals dealers acknowledge this and offer their customers a guideline on bullion purchasing. Under current laws, when an individual sells certain gold and silver products, the transaction is considered a reportable event. Many dealers, such as GoldSilver, steer their customers away from those products they would currently have to report when the time comes. But, will the reasoning in this hold true over time? I think not, and that these reporting requirements reflect only the current reality. The government has attempted already to impose reporting requirements on all transactions above $600 in the form of a 1099 addendum through the healthcare act. Gold and silver are long-term investments when considering that they are hedges against an agenda implemented by elitist technocrats based on incrementalism. Furthermore, the manipulation in the markets also make them a long-term investment in most cases. This implies that, by the time for a precious metals holder to liquidate their position, the laws will be significantly changed. And many of the new and altered laws will be focused on data gathering. What follows is the guidelines that appears on a number of bullion dealers websites. In terms of silver bullion, the national government minted coins carry higher premiums than do their privately minted cousins. These nationally minted coins are the ones which do not carry the reporting requirements of the privately minted coins and bars. Read More