Gold seems to be a much better hedge than an "investment", especially considering storage costs and the market maker bid/sell spreads. I wouldn't never buy gold as an investment with a strong stock market or high yielding money markets (about 5%). Gold is what you obtain when you see high inflation on the horizon or a crashing dollar. Gold is also what you buy when you just love gold and want some to look at.
If your parents believe that the U.S. dollar is going to continue to drop against other strong currencies, or that a global financial crash may occur, then gold is one of the best safeguards against this doomsday scenario. Gold has been a terrible investment in terms of annualized returns over the long haul, and the only way gold will be an investment is if one of the aforementioned scenarios unwinds; global crash or high inflation.
Buy gold for the love of gold, or to diversify one's holdings (10-15%) against an unforeseen financial crisis, but not as an investment.
When I called APMEX they told me they do not report if sent by wire transer, cashier's check, or M.O., since they do not accept direct cash they do not report. I don't know if other companies are like this but APMEX is a pretty reputable company.
"When I called APMEX they told me they do not report if sent by wire transer, cashier's check, or M.O., since they do not accept direct cash they do not report. I don't know if other companies are like this but APMEX is a pretty reputable company."
Your question to them involves your purchase of items from them.
Your question to them does not involve your sale of items to them.
A couple of cautions:
1. Your wire transfer/cashiers' check is recorded/(reported if required) at the origination point.
2. Asking questions about "reporting policies" is an act that is detailed by the Service as "suspicious." The buyer/seller is then required by the Service to "flag" your transaction. (This abuse of taxpayers is rampant in banks that "sell" money-orders and cashiers' checks.)
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
<< <i>I am surprised that no one has suggested the purchase of ONE gold coin. There are a number of relatively exclusive coins that fit in that category. With some direction from people like SaintGuru and his advisors, I suspect you could have lots of fun learning and finding ONE coin. Storage is then in a safety deposit box.
Of course there are all the same risks, but this is where I would go. >>
For those reading along, in my opinion, this is a really bad idea for novices. There is a steep learning curve to collector coins, the odds of novices making a wise choice are close to zero. A person might luck out and find someone giving good advice and selling for an honest price with no strings attached. However, the average novice will find a snake oil salesperson who sells an overgraded, crap coin at full retail price, a coin that knowledgeable collectors would not touch with a ten foot pole.
Same deal with high grade common gold. There are so many overgraded dog coins in top tier holders, a novice usually ends up with low end dregs, often paying full retail price or more.
Your biggest focus should be on finding an investment that actually makes a good profit -- not on the tax and reporting consequences.
"Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
It's not really that I'm concerned with the taxes, it's my parents who are concerned with the reporting part. Is premium of $25 over spot for AGE's too much?
Just keep in mind the last time gold ran Saint reached $1600 a piece for MS63's over twich the price of gold. You have a double hedge there and if you get PCGS, NGC, or ANACS there's really no learning curve on the common dates. JMO
Comments
If your parents believe that the U.S. dollar is going to continue to drop against other strong currencies, or that a global financial crash may occur, then gold is one of the best safeguards against this doomsday scenario. Gold has been a terrible investment in terms of annualized returns over the long haul, and the only way gold will be an investment is if one of the aforementioned scenarios unwinds; global crash or high inflation.
Buy gold for the love of gold, or to diversify one's holdings (10-15%) against an unforeseen financial crisis, but not as an investment.
Just my two cents.
Tyler
John
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They are a good company.
Your question to them involves your purchase of items from them.
Your question to them does not involve your sale of items to them.
A couple of cautions:
1. Your wire transfer/cashiers' check is recorded/(reported if required)
at the origination point.
2. Asking questions about "reporting policies" is an act that is detailed
by the Service as "suspicious." The buyer/seller is then required by the
Service to "flag" your transaction. (This abuse of taxpayers is rampant
in banks that "sell" money-orders and cashiers' checks.)
<< <i>I am surprised that no one has suggested the purchase of ONE gold coin. There are a number of relatively exclusive coins that fit in that category. With some direction from people like SaintGuru and his advisors, I suspect you could have lots of fun learning and finding ONE coin. Storage is then in a safety deposit box.
Of course there are all the same risks, but this is where I would go. >>
For those reading along, in my opinion, this is a really bad idea for novices. There is a steep learning curve to collector coins, the odds of novices making a wise choice are close to zero. A person might luck out and find someone giving good advice and selling for an honest price with no strings attached. However, the average novice will find a snake oil salesperson who sells an overgraded, crap coin at full retail price, a coin that knowledgeable collectors would not touch with a ten foot pole.
Same deal with high grade common gold. There are so many overgraded dog coins in top tier holders, a novice usually ends up with low end dregs, often paying full retail price or more.
novices making a wise choice are close to zero. "
John