Question for those of you selling Silver

percyb

I'm not sure how to phrase this but I keep wondering why people sell their silver for US $, which keeps losing value. I'm wondering if the silver being sold is being replaced with another asset class other than US dollars.

291fifth

1. Try paying your Blue Cross Blue Shield bill (or any other bill) with silver.

2. Not everyone believes this silver run up can be sustained.

Wingsrule

Taking a profit never hurt.

And I sold some awhile back because I thought we were due for a correction. Oh well.

DrBuster

I actually went to the store Tuesday wanting to swap generic for gov silver. Dude was either tight with it or out (said he was out but that was a down day), so I wound up swapping for gold and 90%. He wanted to give me dollars at every point while I had him add to the swap stack with 6 items.

jdimmick

Becuase I can buy a whole new boat load the next business day.

bestmr

I bought some gold earlier in the month so I need to sell some silver to pay for it.

wpr102

Not many other great options, Euros and Yen are the only other big currencies.

All 3 are in a race to the bottom.

pragmaticgoat

<< <i>1. Try paying your Blue Cross Blue Shield bill (or any other bill) with silver.

2. Not everyone believes this silver run up can be sustained. >>



Both these and my silver position was getting overweighted to my gold position, converted 1/3 to add more gold.

jmski52

I think that sometimes, people just can't stand the suspense and forget to review the alternatives.

OPA

<< <i>I'm not sure how to phrase this but I keep wondering why people sell their silver for US $, which keeps losing value. I'm wondering if the silver being sold is being replaced with another asset class other than US dollars. >>



The Casino Gods were napping while I was gambling.

JCMhouston

I always have a plan for other investments when I move out of one. Most of the silver sales I made over the past two months were invested in stocks I consider to be good long term holds, and a little in high grade gold Sovereigns (bullion).

As previously mentioned by other posters not everyone believes silver will keep climbing 5-10% a week forever, and I'm one of them. I had pretty decent profits on the silver I sold and, since I am not smart enough to pick the exact high or low, I take a reasonable profit and move on to the next investment. I never get greedy.

dpoole

As has been pointed out in this space before: it isn't as much silver rising as it is the dollar falling.

It's a lot easier to predict the dollar will continue to fall than silver (or any investment) will rise because of the complex and nubulous reasons with which we're usually confronted.

SportsModerator

As of this AM, Walmart, the Shell gas station, and Krogers supermarket were still accepting US currency. I'll keep you all updated should things change.

OPA

<< <i>As of this AM, Walmart, the Shell gas station, and Krogers supermarket were still accepting US currency. I'll keep you all updated should things change. >>



I called my mortgage holder & would you believe, they refused to accept an equivalent value of silver for my payment. Don't they know our fiat $$ are worthless?

Justacommeman

The dollar is not worthless...........it's just worth less. There is a difference.

Think of it this way. I could have went to my B & M and exchanged two ASE's for $100 on the way to the said gas station to fill up my SUV. I paid a total of $28 for those ASE's in 2006.

Those that have stayed in cash or US equivilents paid $100 US for the same gas yet I paid $28 in theory. Being your own central bank has it's advantages. Gold, silver, Aussie, Cando and Swiss vehicles etc etc etc would allow you to buy everything at a steep discount in the US today.

MJ

Coins101

A couple months ago, a mom & pop store here would take US silver coins instead of greenbacks. They were valuing it at just under spot. I live in a smaller city (<60,000 in a area) and the coin dealer (yes, there is one) was paying a lot less than spot (same with the guy on Craig's List).

I am sure my bank would let me pay with silver coins but I am sure it would be dollar for dollar. I doubt they would take a silver bar though.

pmac

<< <i>As has been pointed out in this space before: it isn't as much silver rising as it is the dollar falling.

It's a lot easier to predict the dollar will continue to fall than silver (or any investment) will rise because of the complex and nubulous reasons with which we're usually confronted. >>


Truer words have not been spoken, but silver is still determined by the whim of the market.

piecesofme

<< As of this AM, Walmart, the Shell gas station, and Krogers supermarket were still accepting US currency. I'll keep you all updated should things change. >>

That would be it in a nutshell. The only thing I would add is that they are not accepting Silver, not even 90% silver. Well I guess they would take 90%, but you get the idea, I hope.

renman95

GLD Vs. SLV 1YR

I'm selling some silver today and will convert the $$ into gold. My overall cost on gold will be relatively cheap.

OPA

<< <i>The dollar is not worthless...........it's just worth less. There is a difference.

Think of it this way. I could have went to my B & M and exchanged two ASE's for $100 on the way to the said gas station to fill up my SUV. I paid a total of $28 for those ASE's in 2006.

Those that have stayed in cash or US equivilents paid $100 US for the same gas yet I paid $28 in theory. Being your own central bank has it's advantages. Gold, silver, Aussie, Cando and Swiss vehicles etc etc etc would allow you to buy everything at a steep discount in the US today.

MJ >>



I believe the question was: why would you sell your silver....We all know that there are numerous avenue of exchanges, but making your regular payments with an equivalent valued PM just ain't in the cards. True...the dollar is worth less than what it was in the past. Your theory works for any item purchased in 2006 that currently has a similar gain, and there are many.

JCMhouston

<< <i>I'm selling some silver today and will convert the $$ into gold. My overall cost on gold will be relatively cheap >>



Not quite so. Your cost basis for the gold will be whatever you pay for it today, and the profit on the silver will be a capital gain reported on your tax return next year.

Bear

i BELIEVE THAT THE REPUBS AND DEMS CAN AGREE, TO CANCEL ALL DEBT

OF WHAT EVER NATURE AND WE ALL START OVER AGAIN.AFTER ALL, DEBT

THAT IS ALREADY IMPOSSIBLE TO EVER REPAY, IS FOR ALL PRACTICAL PURPOSES

NULL AND VOID ANYWAY.

renman95

<< <i>

<< <i>I'm selling some silver today and will convert the $$ into gold. My overall cost on gold will be relatively cheap >>



Not quite so. Your cost basis for the gold will be whatever you pay for it today, and the profit on the silver will be a capital gain reported on your tax return next year. >>



Dang the details.

Leham

Both these and my silver position was getting overweighted to my gold position, converted 1/3 to add more gold. >>



literally what I did too.

Justacommeman

<< <i>

<< <i>The dollar is not worthless...........it's just worth less. There is a difference.

Think of it this way. I could have went to my B & M and exchanged two ASE's for $100 on the way to the said gas station to fill up my SUV. I paid a total of $28 for those ASE's in 2006.

Those that have stayed in cash or US equivilents paid $100 US for the same gas yet I paid $28 in theory. Being your own central bank has it's advantages. Gold, silver, Aussie, Cando and Swiss vehicles etc etc etc would allow you to buy everything at a steep discount in the US today.

MJ >>



the dollar is worth less than what it was in the past. Your theory works for any item purchased in 2006 that currently has a similar gain, and there are many. >>



You could pick just about any date including 2011. I was speaking only of alternative currencies. MJ

derryb

<< <i>

<< <i>I'm selling some silver today and will convert the $$ into gold. My overall cost on gold will be relatively cheap >>



Not quite so. Your cost basis for the gold will be whatever you pay for it today, and the profit on the silver will be a capital gain reported on your tax return next year. >>


Ya gotta pay capital gains sometime. Might as well pay the bulk of it before they jack the rate.

jmski52

I believe that there are some advantages in "like kind transactions" if you want to defer your capital gains taxes. As long as the transaction qualifies under the rules and as long as you comply with the reporting requirements, I think it is a viable way to trade into other metals. Keep good records.

Re: IRS Form 8824, plus the Instructions.

As I look further, it's the typical government can of worms. Still checking.

It looks more and more like a bad idea. Actually, it looks like the financial services industry paid off some senators to enact legislation that costs taxpayers more money and puts it into someone else's pockets.

Same sh*t, different day. Argh.

<<Ignore this post>>

pakasmom

the profit on the silver will be a capital gain reported on your tax return next year.

Uh oh. I didn't realize I had to report it. No big deal if there's no paper trail, right?

derryb

<< <i>the profit on the silver will be a capital gain reported on your tax return next year.

Uh oh. I didn't realize I had to report it. No big deal if there's no paper trail, right? >>


All income should be reported, that's why they call it an income tax. And it gets taxed in the year earned, not next year. The digital trail is the one you need to be concerned about: Paypal, Ebay, bank deposit etc.

pakasmom

<< <i>All income should be reported, that's why they call it an income tax. >>



Gosh, that was stupid!

CerealSpiller

I think many still suffer PTSD from 1980.