Hypothetical Question for anyone who wants to weigh-in.

[coolpix9]

Okay here goes nuttin', A guy(who I don't know) has a ton of silver in his safety deposit box. Would it make any sense to swap some or all of it for gold. The most obvious benefit is the storage space needed for the gold versus the bulky silver. One of the reasons for my question is the new $600 limit on gold/silver purchases/sales starting on New Year's Day. If we are lucky enough to get the Fall Run-Up in silver prices,I was thinking it might make sense for him to convert some AG to AU. Let me hear some ideas from you phart smellers,I mean smart fellers. Jim

 

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[keverett]

I would say that it would be a smart move to convert some of it to gold considering the tax complications next year. Depending on the amount of silver he has, maybe diversify and put half or so into gold. I still believe that silver has the advantage in the long run, with more room to rise, but a diversified stockpile is better to have. Just my opinion.

 

[AGCoinHunter]

I have been buying fractional gold because I feel the demand on them will be a lot larger once the 1099 rule goes into place. My only caveat on buying gold now is that it is at historical highs while silver has lagged. The value ratio of silver to gold is way off from where it typically is historically. Think of it this way, you are selling your under valued silver and buying over priced gold. Do I think gold will continue to rise, maybe. Depends on how fast our economic decline is. It is good to diversify into gold with some of your holdings, but I wouldn't sell of a majority of it to finance it. If the manipulative forces in the markets get trumped by the panic and fear I feel is coming, you wont be wrong to go with either of them. My 2 cents...

 

[Emperor Findus Cladius]

I am of the opposite opinion. I just sold several ounces of gold and purchased all junk silver coins with it. My reasoning is that silver has much more potential to go up, due to its industrial uses, store of value and its current high ratio of silver to gold. But then, I also have a large safe at home that I can keep my stuff in, so I do not have the same space restrictions. I have thought about the fractional gold pieces, but I do not like the premium placed on them.

 

[thrillathahunt]

I too am bullish on silver. China is now encouraging it's citizens to buy silver.

 

[legend76]

I am of the opposite opinion. I just sold several ounces of gold and purchased all junk silver coins with it. My reasoning is that silver has much more potential to go up, due to its industrial uses, store of value and its current high ratio of silver to gold. But then, I also have a large safe at home that I can keep my stuff in, so I do not have the same space restrictions. I have thought about the fractional gold pieces, but I do not like the premium placed on them.

I couldn't agree with Wayne more. I, too, am thinking of converting some gold into junk silver. It's good to have some of both. How much of each? I guess that's the $64,000 question. I have 3 SD boxes, and if I swap gold for silver and run out of room, I may just get out my shovel. If the economy gets bad enough (and I think it will), we could see the same thing as in the 1930's when you couldn't access your SDB without an IRS guy over your shoulder. That would suck!

By the way, the new law regarding the 1099's starts in 2012.

 

[65gt350]

I agree with Wayne too. Although I think it depends on what type of silver the guy is holding. If he is holding a bunch of 40% I think I could justify taking the hit now just to get some gold and free up storage space. I would not be trading 90% for Au now though.

HH,
65GT350

 

[silvercop]

i swap 40% silver for gold. i hold onto the 90%.

 

[65gt350]

One thing I forgot about was your concern with the $600 reporting requirement. Although I have not read the reporting requirements I would think that buying 1 oz of gold for $250 would not be a reportable event.

HH,
65GT350

 

[coolpix9]

If you are going to trade with a dealer,he is required to make a record of the transaction. I don't think you could fool anyone into thinking that $250 in FV coins traded for an ounce of gold is going to fly. The guvment is trying to close the gold loophole and put the squeeze on the big gold sellers. We are small potatoes compared to GoldLine etc, but we will be caught up in the crackdown. I hope our future of selling doesn't come down to Craigslist or epray. HH, Jim

 

[onfire]

Join a prospectors club and sell it underground. plenty of buyers.I have a guy who will buy it the minute you call him. at that exact spot price.He's been buying AU since the late 70's So screw the new law.

 

[Diver_Down]

Forget about this new scary reporting requirement. You will be able to conduct cash transactions without reporting, you just may have to shop around. You won't need to join a prospector's club or resort to craigslist or eBay. Just take your coin to the bourse floor of a large coin show. There will be someone who will be glad to pay you cash (or trade from their inventory) without dealing with reporting requirements.

To prove my point, I'm waiting for the new year to take $500 face of 40% halves to the FUN show. Last year, there was over 650 tables on the bourse floor.

 

[GMan00001]

I don't know the exact verbiage, but once the regulations do finally go into effect, would a trade of silver for gold be a reportable event anyway as it is a barter of two equal value items and not a sale for profit?

Of course that means the person with the gold would have to want the silver and vice versa, but barter still should not be reportable (at least I hope not).

 

[65gt350]

I don't know the exact verbiage, but once the regulations do finally go into effect, would a trade of silver for gold be a reportable event anyway as it is a barter of two equal value items and not a sale for profit?

Of course that means the person with the gold would have to want the silver and vice versa, but barter still should not be reportable (at least I hope not).

I think that barter is reportable at FMV. I know that an exchange from silver to gold does not qualify as a like kind exchange in order to avoid the capital gains tax.

HH,
65GT350

 

[CHAINCHOMP]

if i were YOU, i wouldnt, cuz silver is a way better investment from what ive heard...tho its YOUR choice.
keep it up and hh!