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Originally Posted by TJ SoBos
So, where is a good place to buy Gold, and/or Silver?.....and which is better, coins or bars?
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JM Bullion is a good and reputable company. Any sale of gold or silver over $10,000 is required to be reported to the government. Precious metals are considered collectibles for tax purposes, meaning any capital gains are taxed at the maximum rate of 28% federal tax. At a current price of about $2,625 per Troy ounce, that’s only about 3.8 ounces until you reach the reporting threshold. It would be impossible to sell gold bars and not have it reported to the government. Gold coins are typically 1 ounce, so at current market value, you could sell three coins per day without ever having anything reported to the government. Silver is only about $31.3 per ounce, so you could get away with bars and remain under the reporting threshold.
Remember 3 important things if you dabble in physical precious metals. The bid ask spread is large, making it a long term, not a quick flip investment. It needs to physically be stored in a safe and fireproof place. It pays no interest or dividends, so it’s like stuffing money under a mattress.