I'll gladly bake you a loaf of bread (or two) for a gold bar.

So if 88 y.o. Barney and his wife decided to sell his 4 lb.'s of gold, just because it's time,

What are they going to face in the way of state and federal taxes ?

quote:

Originally posted by bendable:

What are they going to face in the way of state and federal taxes ?

Federally, capital gains as a collectable so 28% of buy/sell difference. Each state is state specific.

Depends on what Barney paid for the gold to determine the exact amount of tax due, and what state Barney resides in. FederaL tax man would want capitols gains tax depending on income. Likley rate would be 15% of the profits on the sale. If Barney paid an average of $700 an ounce and sold for $2565 an oz he would likley owe $17,904 in federal tax.

quote:

Originally posted by pace40:

quote:

Originally posted by bendable:

What are they going to face in the way of state and federal taxes ?

Federally, capital gains as a collectable so 28% of buy/sell difference. Each state is state specific.

Edit - Removed incorrect information.

This message has been edited. Last edited by: Skins2881, September 25, 2024 07:40 PM

quote:

Originally posted by joel9507:

quote:

Originally posted by Fly-Sig:
The short term price is more an indicator of fear. Higher fear will cause a higher price.

Often, but not always.

When the 2008 panic hit big time in October, fear was palpable and cash was king. Turned out gold was just another asset for people to sell, and sell they did.

Now, it did come back shortly afterward. But during the panic, people who mistakenly thought their gold was insulation against the madness of crowds found out otherwise, then themselves joined the panic when reality hit and their $900-$1000 gold started plummeting along with the lesser asset types, eventually reaching under $700.

The lessons there for the short term are a) enough fear causes lower prices, and b) some panics affect everything.

All true, especially the short term aspect. There are a lot of big money players in all the different markets, so we as individuals are irrelevant, even as an aggregate group.

Imho, the value of physical gold and silver is for the shtf zombie apocalypse where US currency is no longer usable, and/or if there is a prolonged widespread electrical grid outage where electronic payment is impossible.

Otherwise, metals are just another vehicle for speculation. Certainly fine to be in a diversified portfolio.

If it comes to using gold and silver for daily monetary transactions, it’ll be because the Dollar has collapsed into a Weimar Germany level of economic collapse. I don’t think that the IRS and other Feddies will be trying to collect back taxes; they’ll have other problems they’ll be dealing with.

quote:

Originally posted by Skins2881:


Bendable, tell them to sell now at the current 15% (20% if they are ultra high income). Unless they've held for under one year then it will be taxed as ordinary income.

You might want to look into this a little further.

Link

^^^^Holy cow, I'm not sure why someone would even invest in gold at those rates.

I'll stick to stocks and mutual funds. If I thought I wanted gold exposure I would invest in precious metals fund I guess, or lie on my taxes and deal in cash/black market.

My local coin shop pays spot -$50 for sovereign mint gold and spot -.50c for sovereign silver. He pays in cash.

So besides the 30 years of paying for a safe deposit box, ( for the gold)
and
The brokers fees at purchase, plus the brokers fess at the sell point,
They have to subtract state and fed taxes.

So there is " appreciation" and then there is reality.

quote:

Originally posted by bendable:
So besides the 30 years of paying for a safe deposit box, ( for the gold)
and
The brokers fees at purchase, plus the brokers fess at the sell point,
They have to subtract state and fed taxes.

So there is " appreciation" and then there is reality.

Exactly!

Physical metals in small enough pieces to use for survival barter are not purchased with the idea of profit. They are prepper supplies like canned food. "Junk silver", which is old US coins containing silver is favored, but makes little sense if profit is your goal.

If one is interested in investment profits then the math is troublesome for physical metals. An ETF or mutual fund has better profit potential, but also a concern that some funds don't actually possess all the metal to cover the shares.

My 2 best investments right now are indeed gold and silver in funds that certify they do hold all the physical metal. Silver looks to still have a lot of upside.

There’s a retail market for gold because to the dealer, it’s equivalent to giving $19 in change for a $20 bill and selling that same $20 bill for $21.

And if you’re running low on inventory, they can probably buy from a distributor for $19.25.

You just need the inventory turns.

quote:

Originally posted by Skins2881:
^^^^Holy cow, I'm not sure why someone would even invest in gold at those rates.

Gold is not for investing. It's for piling on the table and letting it run through your fingers. More is better.

quote:

Originally posted by Skins2881:
^^^^Holy cow, I'm not sure why someone would even invest in gold at those rates.

I'll stick to stocks and mutual funds. If I thought I wanted gold exposure I would invest in precious metals fund I guess, or lie on my taxes and deal in cash/black market.

No tax on bullion or numismatic coins in VA. It's essentially an exchange of money.

quote:

Originally posted by DCFD4:

quote:

Originally posted by Skins2881:
^^^^Holy cow, I'm not sure why someone would even invest in gold at those rates.

I'll stick to stocks and mutual funds. If I thought I wanted gold exposure I would invest in precious metals fund I guess, or lie on my taxes and deal in cash/black market.

No tax on bullion or numismatic coins in VA. It's essentially an exchange of money.

I assume you are talking about sales taxes, not federal cap gains? Either way the the 28% cap gains at a federal level would guarantee I wouldn't invest in shiny metal.

I don't find any value in physical gold. I know you could exchange a gold bar for antibiotics or food in EOTW situation but I am pretty sure my bullets would be more valuable for either trade or acquiring resources by force. Either take my bullets, or take my bullets.

quote:

Originally posted by Skins2881:

quote:

Originally posted by DCFD4:

quote:

Originally posted by Skins2881:
^^^^Holy cow, I'm not sure why someone would even invest in gold at those rates.

I'll stick to stocks and mutual funds. If I thought I wanted gold exposure I would invest in precious metals fund I guess, or lie on my taxes and deal in cash/black market.

No tax on bullion or numismatic coins in VA. It's essentially an exchange of money.

I assume you are talking about sales taxes, not federal cap gains? Either way the the 28% cap gains at a federal level would guarantee I wouldn't invest in shiny metal.

I don't find any value in physical gold. I know you could exchange a gold bar for antibiotics or food in EOTW situation but I am pretty sure my bullets would be more valuable for either trade or acquiring resources by force. Either take my bullets, or take my bullets.

Yes, sorry, sales tax. But seriously, who would report to the Feds when some cash and gold exchange hands?? I have very little bullion probably because I believe more in your bullet theory as well

taxes are the same on stock profits.

quote:

Originally posted by oddball:
Warren Buffett has recently converted approx. 40% of Berkshire Hathaway into cash, nearly $ 300 billion. Election time jitters, who knows. But gold rising to these kind of prices is not good news for the dollar.

https://billcara.com/community/#comment-41751
https://www.reuters.com/busine...fit-sets-2024-08-03/

I have a little less money than him, but I did it so that when stock prices take a crash, I can buy bargains. I did that prior to covid and made lots of money, even some 10 baggers.

Another problem investing in gold...government can seize the gold.

If the world ends, silver will probably be a better metal for everyday purchases,and a millionaire or billionaire with a large stash of gold in his home vault would probably wake up with the local warlord outside his compound one morning demanding that he turn over his gold.