Yes, exactly. I hold a miner ETF in my taxable account instead of anything with direct exposure.
As far as better returns, yes miners often have better returns. But they’re simply higher beta than gold. It would be reasonable to look at them as if they were leveraged exposure, because it cuts both ways. When gold is on a run, miners make a killing. When gold is having a drawdown, miners have an even deeper drawdown. No guarantee of better returns. But they’ve been very nice to me this year.
Looking at a 5 year chart for silver, and comparing a mining ETF (SLVR blue line) with the commodity ETF (SLV brown middle line), against the S&P 500 (bottom chart), the silver miners clearly was the better investment. Three and one year charts are similar.
Just a current snapshot, and this chart would have looked much different a year ago.
If you buy Precious Metals through a retirement account (IRA or 401K) you’re not subject to Capital gains on the appreciation as long as it remains in the account. When you are of retirement age and start to withdraw, any withdrawal is treated as standard income.
I opened a Gold IRA through Augusta Precious Metals (there are a bunch of reputable ones out there). They helped setup the Gold IRA, I transferred money from my 401K into that Gold IRA account and bought coins through them. It is securely stored in Delaware in a secure facility. They can also facilitate the sale of the coins if you want. Of course they will take a small profit for doing so.
Not sure how much a “gold IRA” costs, but you can buy gold exposure in any IRA. And as you say, IRAs are tax efficient, making the taxation discussion irrelevant.
GLDM has a 0.1% expense ratio, which is pretty good, for gold. Sale is executed by clicking “sell”.
Correct. I just had a 401k , so I opened an IRA so I could purchase gold. My wording was a little misleading I guess.
Well, silver and gold still climbing and I’m pretty glad. I really think the dollar is screwed long term.
If you want to get into silver/gold now, go cautiously, but long term you should be okay.
The better trade is copper. Just beginning to really move and critical to data centers.
I bought COPX and ICOP ETF’s recently and already up 5%.
Last suggestion is SETM, that covers a LOT of mining stocks.
Do your research!
He’s confusing sales tax with federal and state income tax. Gold and silver are absolutely subject to income tax.
Can you please explain to me how the silver/gold is taxed? How do they determine the basis? Who actually keeps track? What if you are given a stack of silver eagles? How do you know what they cost? Timeframe held?
It’s like most other assets that you have a gain or loss on when you sell. You keep track of your basis (the amount you paid) and tell them when you sell. The difference between your basis and what you sell it for is your income or loss. If you are given any asset, it depends on the circumstances. If it’s from an estate, then your basis is the amount it’s worth when you receive it. If it’s a straight gift from someone, then it’s the same assuming that they deduct it from their gift allowance. Otherwise, it’s income just as if they gave you cash.
The same is true of any investment with the exception of any dividends that you might receive. Dividends are income at the time you receive them.
One very important thing that people need to understand about the spot prices (bid and ask) of precious metals is that those prices are for international contracts to buy and sell in the future. While the actual price you can buy or sell is somewhat based on the spot price, it isn’t the spot price. What you’ll be able to sell for is an amount less than the spot price and what you’ll be able to buy for is the spot price or more. The market is currently crazy due to the recent increases in prices. As a result, the spread (difference) between what shops will buy and what they will sell for is very high right now. Refineries are backed up and delaying payments to their customers. If you need to sell, the best thing to do is shop around for the best offer. If you can, go to a coin show and shop what you’re selling around.
A question for those familiar with selling physical silver. I have a few rolls of old silver coins. They are not in good condition. They are all circulated and worn. Some very worn. A friend mentioned that they were probably worth more sold at “melt” than as coins. Any hints as to finding where it would be best to liquidate such coins.
I just got back to AZ and the only places I am seeing are of the “Stick it to ya Coin and Gold” variety. My friend buys and sells on some online auction site (details inbound) but frankly that sounds like a PITA.
Without a doubt, take them to a coin show, the bigger the better. If you have any Kennedy halves, make sure the 1965-1970 ones are sorted separately as they’re only 40% silver. Shop them around and take the highest offer. For the 90% silver ones, coin dealers will typically make offers as a multiple of face value. For example, they might say that they’ll pay 52X silver. BTW, don’t be surprised if most coin dealers pass on making you an offer. It’s a difficult time for coin dealers right now because there are way more people wanting to sell than buy. They have to sell to refineries and then wait to get paid because of the backlogs. Given how much gold and silver prices have changed recently, there’s an incredible amount of risk/reward currently. That said, there are typically a couple at a show who are willing to make the best offers.
I don’t see it mentioned but if you were to sell your physical stuff on say eBay. If you sell over $600 of anything combine…. they are going to send you a 1099-K. That is true for any of these online places that process sales for you.
So if you sold a couple gold coins or rings or whatever at say $250 each and then sold some holsters at $125 you are going to get a 1099-K for $625.
I can’t recall if the IRS asks what the items were with regards to collectables, etc..
Also Native Craft and South Western Jewelry Making shows.
I’m sure you can always find someone there.
