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I see where it mentions the law would only apply to transactions that need financing. It also mentions retail transactions but nothing about wholesale transactions. Thoughts?

 

There's definitely a danger in the power of credit cards and that ability to buy PMs for a lot of folks using cc's. For those tempted or with weak credit it might deter some financial blunders for that segment of buyers out there. However, this proposal sounds like a insanely complex issue to implement and police. Banks may become the place to buy bullion and even US Mint issued collectibles made from PMs, where you can get them in person and without shipping. The infrastructure is there, at least in bigger branches, with vaults and security on premises as well as being serviced by armored car. The US Mint could set up sales kiosks within banks or even Mint operated retail outlets at shopping centers (provided security issues were figured out of course). I assume jewelers and coin dealers would also be sought more often for bullion. That or the Mint's dealer network that Doug mentioned being expanded for retail customers seeking bullion. Very interesting article. Thanks for pointing it out and the insights.

 

I may be stating the obvious, but it seems to me that someone is trying to limit the ability of folks to purchase precious metals. All the folks buying PM's must really be ticking the Feds off. What's the matter? Getting more difficult to control the price of PM's? In the end it's gonna be the little guy who gets hurt. The big boys buying into PM's will find other ways to do it and the little guys who want to augment a collection will be left blowin' in the wind.....

 

As composer Cy Coleman would put it, " The best is yet to come," only that under the time(s) we are living,(regardless of politics) the "WORST" is yet to come. I hope that I am wrong for I, like you, all have family and dependants... any thoughts?

But remember you got to play the game or "It Don't Mean a Thing (If It Ain't Got That Swing)" Duke Ellington and lirics by Irving Mills

 

No congressional sponsors mentioned, this thing will not happen.

 

I have no idea of how big the magnitude of this law would be, but one thing I am sure... US Customs does not charge duties on Collectibles. This means that Collectible Gold or any other collectible item can can go out of this country without having to declare. At the same time collectibles can come in as duty free therefore non-declarable. That is how the narcotics cartels launder their profits and then resell them making a profit of bonafide items.

I understand by this maybe not the regular JOE but the rich Joe can take out gold (collectible in the form he prefers) sell it on foreign countries, deposit his gainning on foreign (Swiss) bank account, come back home to US, and he will be clean as a whistle.

On the other hand he can buy millions of $$$ worth of gold, paintings, work of arts of any form, bring it to US as "Collectibnles" and overpass US Custom/first line of protection.

No IRS...

Any thoughts?

 

well... from one of the littlest of little guys - i dont buy alot of bullion except for silver. I dont follow much abotu the PM market except when i try to buy silver, and even then its just the price and spot price i care about.

Lets hope this sort of thing doesnt happen! I see no sense in it!

 

Would these "face to face" sales technically be illegal also and we are treating them as an under the table type thing?


stainless

 

Interesting article, It is written from the perspective of someone who may sustain a loss from the proposed change, I wonder how an advocate of that change would frame it?

 

Wouldn't those dealers have the same problem ? Doesn't that mean they would become extinct, and the Mint wouldn't have any customers at all ?

The devil is in the details. The exact wording of the bill is critically important. It seems unlikely they would craft a law intended to hit something else and hit hobbyists in the crossfire.. especially since it means the US Mint would lose their customers.

 

you need to know the Government could care less about anyone or anything that doesn't affect the people in said government...

Healthcare reform isn't about the reform the snake oil sellsmen are talking about nor other pointless laws/bills such as this one about helping this nation. It's about control and/or about just change for the sake of change and to show some senator or president can DO! "something" it's the way the government has been with the exception of some politicians since it came about after the true patriots that made this nation.

I wonder if any of the politians in washington realize the reason they are suppose to be their for?
not for personal gain but to give up a fraction of their life for the patriotism of what this Great Nation was based on.

this law would be idiotic to do it's just another way to control a market that is already controlled way too much to begin with.

 

As I read the article, I couldn't help but think how easy it is for identity thieves to run up falsely obtained credit cards with PM purchases. If that's the purpose of the legislation, I'm sure some happy medium can be found.

 

if this were to happen it would quickly create a black market for such deals. They would still happen, with credit, non-face to face, internet based... maybe not ebay - but the, maybe!

you outlaw guns - only outlaws will carry guns.... why? because people will not stop carrying guns. Same with coins. outlaw coin sales like this, and only outlaws will buy them. A little stretch on the analogy, but it works People will WANT to buy the bullion. Short term, yes, i think sales will be hurt. But people will find a way to both sell and buy the coins.

Think of this scenario-
I was talking to a friend of mine last week about ticket scalping on Ebay. To bypass the law about selling tickets above face value - which is illegal - the Ebay seller will sell somethign simple like a paper clip, a pencil ect. But with the rediculous item your bidding on, you get the tickets for free. Think about it... this law could open a while new collectible of paper clips bought off ebay.

 

This is true with anything, you outlaw pot and only outlaws will smoke pot. You outlaw murder, only outlaws will murder. Outlaw caffine and only outlaws will drink coffee..I guess we just make everything legal and we don't have any more outlaws. We never care about the government outlawing something until they decide to outlaw what WE think is our right to own or do. The government outlaws 5 things and we say...good, I am sure this needs to be done...then the 6th thing they outlaw is something YOU care about and now the government has gone too far!!

Need more actual information to make a judgment on this, like the details of how it will work or the actual proposal and not just some guy telling us what they are going to do. After follwing the health care debate, I have found what some guy on the internet or radio says they are going to do and what they are actually going to do is often way off. I have a feeling this has to do with panicky idiots maxing out credit cards to buy gold in the vain hope that somehow gold will still have worth in a collapsed economy...all the while helping to move us towards a collapse by defaulting on credit cards they have maxed out. Like they found out in Germany, gold isn't worth anything if there isn't anything to buy or an economic system to place value on that gold.

This little snippet just doesnt say much of anything to hang ones hat on.

 

I think the article is misleading. If power is given to the CFTC to regulate and police the OTC market, it means they have authority to allow or disallow activities deemed a threat. The author jumps to the conclusion that the CFTC will disallow credit card sales and sales by mail when this is unlikely to be the case.

 

I would like to read the proposed legislation - what is the bill #.

 

^^ditto