To sell or wait?

[Dannycoco]

I called a coin shop today to ask what they were paying for silver half dollars. He tells me $8.50 for 90%ers and $3.25 for 40%ers. I can make a hefty profit at that amount but would be kicking myself if it spikes . What would you do?

 

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[fistfulladirt]

GREAT JOB you did GOOD, I'm thinking the same thing, sell when i can make a decent profit.

Just don’t forget your capital gains tax of 28% on the sale.

 

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[Twitch]

Just don’t forget your capital gains tax of 28% on the sale.

I didn’t think you had to pay capital gains on the sale of US coins sales?

 

[fistfulladirt]

I didn’t think you had to pay capital gains on the sale of US coins sales?

Not on the coin itself, but the profit. It’s income.

 

[blueberra]

Not on the coin itself, but the profit. It’s income.

How does the govt. know that you didn't buy the silver a long time ago (like when the Hunt bros. were trying to corner the silver market) at the exact price you sold it for (or, maybe, more)? Thus, no profit = no capital gain = no tax due.

 

[EQ8]

I would hold on to the coins unless you need the $$.
After all these ridiculous "bail outs", money is bound to become a lot more worthless.
As a friend told me..
"Gold will get you out of jail, and silver will allow you to eat.
Also.. try a couple of apps..
"Ciinflation" and "scrap it".
Your coin dealer is offering you over $2 LESS than silver halves are worth.
Strictly MY opinion.

 

[Avago]

blueberra - you could even deduct the capital loss if that were the case!

 

[fistfulladirt]

How does the govt. know that you didn't buy the silver a long time ago (like when the Hunt bros. were trying to corner the silver market) at the exact price you sold it for (or, maybe, more)? Thus, no profit = no capital gain = no tax due.

No profit, then why would they notice or care? What they might take notice of is someone’s post of a recent sale on an internet public forum, which we tend to see from time to time.

 

[TheMastermind]

How does the govt. know that you didn't buy the silver a long time ago (like when the Hunt bros. were trying to corner the silver market) at the exact price you sold it for (or, maybe, more)? Thus, no profit = no capital gain = no tax due.

blueberra - you could even deduct the capital loss if that were the case!

"I bought all of that in 2012 at $48/ozt., Mr. Gov't Man. Just sold it all for $40/ozt. Can you direct me to the form for declaring my losses?"

 

[Avago]

One thing they may do is ask for proof of the purchase/receipts, which you might not necessarily have if they were a bunch of smaller, unreport-able cash purchases - But big brother would say "where did you get the $xx,xxx in 2012 to buy it all then?"

Initiate audit.

 

[A2coins]

It will go up much higher as the economy and the dollar tank the more the gov spends the higher it goes and a recovery is a long way away

 

[Twitch]

Yeah, I was thinking sales tax. There’s no sales tax on US coins (but there is on currency).

back to the original question I don’t have a real emotional attachment to my CRH finds necessarily but also don’t need the money. I think if silver gets to $36-38 my 40%ers may get sold.

 

[MalteseFalcon]

Bear in mind also that people do not necessarily deposit their "return" into bank accounts where gummint cheezeballs can see the numbers.

If I accumulated several grand in silver over a period of years, did not really advertize the fact I sold any of it, and did not deposit any of my sales into a bank account, the only way the gummint would know I sold any of it would be by checking the records of the dealer I sold the silver to. Sure, it is still a record, but with no record of the cash being deposited, there would be one less record of any "profits".

But, it is all pie-in-the-sky "theory" and also, what the hell do I know?

 

[MalteseFalcon]

Yes, but my opinion is that I sell so little I am unlikely to be audited. They have bigger fish to fry, and even if they raked me over the coals for the profit on, say, 100 dollars face value in silver, they would give me the opportunity to make good on it in the end.

As it is, it would cost them so much more to prosecute some small-time cretin like myself that it would not be worth it. If they have to spend 20 grand in legal fees, investigative work, court costs, etc. for 400 dollars I "forgot" to report on my tax form, it would not be worth it to them at all.

 

[fistfulladirt]

Bear in mind also that people do not necessarily deposit their "return" into bank accounts where gummint cheezeballs can see the numbers.

If I accumulated several grand in silver over a period of years, did not really advertize the fact I sold any of it, and did not deposit any of my sales into a bank account, the only way the gummint would know I sold any of it would be by checking the records of the dealer I sold the silver to. Sure, it is still a record, but with no record of the cash being deposited, there would be one less record of any "profits".

But, it is all pie-in-the-sky "theory" and also, what the hell do I know?

Your point? Ya kind of tip toed around the elephant in the room.

 

[fistfulladirt]

Yes, but my opinion is that I sell so little I am unlikely to be audited. They have bigger fish to fry, and even if they raked me over the coals for the profit on, say, 100 dollars face value in silver, they would give me the opportunity to make good on it in the end.

As it is, it would cost them so much more to prosecute some small-time cretin like myself that it would not be worth it. If they have to spend 20 grand in legal fees, investigative work, court costs, etc. for 400 dollars I "forgot" to report on my tax form, it would not be worth it to them at all.

Since when is cost a matter to Guv?

 

[silveraddict]

Unless/until you need cash badly, you shouldn't trade your physical silver for dollars. There is a much better thing to do with physical silver - if you are patient.

You can build a larger and larger stack by trading between silver and gold. Hold your physical silver until the ratio of gold to sliver is less than 65 (currently around 73, recently in 120's). Once the ratio gets to the low 60's, trade all of your physical silver for physical gold. Then, then wait for the ratio to get above 80. When that happens, trade all of your physical gold for physical silver. For each trade, your stack of precious metal grows. It grows free of cost, free of risk, and free of taxes. It works.

This is what I have done before and am going to do this time.
I traded my gold for silver when it broke 90
No regrets that it climbed to 125
But, I am holding out for 35 to trade my silver back into gold.
I believe mid 30's is most likely.
I've done this before. It work VERY well for me

 

[silveraddict]

Just don’t forget your capital gains tax of 28% on the sale.

They will have to find " John Smith " to charge MY capitol gains tax to. LOL

 

[fistfulladirt]

They will have to find " John Smith " to charge MY capitol gains tax to. LOL

Tried that with my LCS. He didn’t think it was funny as he demanded my driver’s license. I don’t carry a second fake one LOL.

 

[silveraddict]

Tried that with my LCS. He didn’t think it was funny as he demanded my driver’s license. I don’t carry a second fake one LOL.

Fortunately I have been friends with the owner of my LCS for over 40 years.
Not a problem for me.

 

[Twitch]

I wouldn’t mind seeing a silver to gold ratio of < 50:1. That might trigger some rotation for me.