Your Questions About Invest In Gold Or Silver

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Mark asks…

If I invest in gold or silver and keep it in a safety deposit box?

How do I pay taxes on it, once I sell it? Let’s say I buy a lot of real gold and silver that are in bars. How would I go about selling it in the future and paying taxes on it? I don’t want to get into trouble if I all the sudden have all this gold. Also, where would I sell it? The reason I ask, is I was thinking about buying actual gold as an investment. Do I have to keep a receipt for what I bought it for? Does anyone know about rules for buying or selling gold in Illinois or where I can find them? Thanks

financi4 answers:

In the U.S., you only have to pay taxes on REALIZED investment gains, not unrealized gains. So if you bought and held 1 gold bar for 10 years, at the end of 10 years you may have unrealized gains because the gold will have presumably increased in value. However, you will not have realized gains until you sell the gold bar to someone else. That’s when the taxes will be due. You want to keep your receipt because that will be used to measure your gains.

You buy and sell gold at a gold dealer, usually someone who has a big business trading in gold, silver and/or diamonds.

Gold is a very good investment right now. Good luck!

Paul asks…

What do you think of investing in gold and silver now at these very high prices?

And .. what do you think is a better investment.. gold or silver?
Tks

financi4 answers:

They may be the highest prices they’ve ever been, but I have to go with Peter Schiff on this, and recommend buying it while it’s still this cheap!

Personally, I favor silver, preferably in smaller denominations. Mainly because it’s more liquid and can be used for purchases like food or other needs in a “shit hit the fan” type of world like we’re headed towards. Gold is actually too dense of a store of value anymore unless you’re trying to buy something like a car or boat with it.

Joseph asks…

Is it right time to invest in Equity/Gold or Silver?

Will there be a market crash in a month or 2?

financi4 answers:

Yes it is

Donald asks…

I want to invest in gold and/or silver coins.?

Which is better to invest in? And what are the names of the coins in should ivest in? Someone told me to go with silver becouse the price of gold was to inflated. Thank for the help.

financi4 answers:

One doesn’t really “invest” in gold; rather, you allocate some of your funds to precious metals, typically no more than 10%, as a hedge against the corruption of a paper currency.

With gold already high at $920, there’s every reason it can continue to go higher as long as the Fed and Bush/Congress continue to inflate the Dollar by lowering interest rates and “stimulating the economy”, with extra tax refund checks.

The reason many suggest silver over gold is the factor of the gold/silver ratio, which is now about 54, rather than the historical range of 15-20, meaning that silver is supposed to be undervalued vs. Gold. So if you conclude that the ratio should be going down, you would have more upside potential in buying silver now.

While the 1801 stat that Golda mentioned might indeed be true, the question is, who has lived 200+ years to have been able to take advantage of that? And who can say for sure that the Dollar won’t totally collapse this time around? While i also see it as highly unlikely, if all my other paper investments were to vanish, i do expect my 10+% in precious metals to carry me through.

And as for an example of the bullion coins i buy, Krugerrands for gold, and Canadian Maple Leafs (and American Silver Eagles to a lesser extent) for silver. Krugerrands have no face value, while ASE’s have a face value of US$1 and CML’s a face value of C$5. Although silver is silver, i do prefer the Canadians for the higher face value, even if i don’t know if there will be any practical difference between them if and when the time comes…

John asks…

How to start a gold/silver/rare coin investment firm?

I really want to start a gold investment firm and i’ve been reading up a bit on investment firms and their regulations and stuff, but I don’t know how much of it affects me or if there are different thigns I need to know if i’m going to be buying and storing gold verses investing in the stock market. Any advice would be great!

financi4 answers:

It is a different matter entirely, especially if you want to include coins. Both collectible and investment grade coins are complicated subject in themselves. I would suggest first finding a job at a place like that, just to learn the ropes, and only then think about own place.

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