I won't get to detailed in fear I will bore most. My question is, I am a classic muscle car junkie. Long story short a family friend just completely redid a 1965 Vette 327 ci 300 hp matching numbers convertible. Paint was the only thing really changed from original but looks super slick. My question is he will take 2000 silver american eagles for the car which values the car at much less then he wanted it for a purchase price. Here is the basic question I have. Should I take him 2000 oz out of my hoard replacing it over the next couple years, or just use the loan I can get on it at 4% to 4 have cases drop shipped to him?
Taxes should play into your decision. When you sell the car, your basis cost must be established to determine your taxable gain. Would you like that basis to be your cost in the coins you already hold, or in the coins you could purchase and have drop-shipped to him?
There's a few questions you need to answer to figure out what to do.... A: What is the retail value of the car? B: What would you get if you sold the 2000 SAEs right now? C: Is B less than or equal to A? D: Would you rather have a new toy you can drive around, or the SAEs? I love the classic Corvettes, personally, but dunno if I'd want the responsibility of owning one.
I'm also wondering whether the seller has in mind to take $2000 face value of American legal tender coins, and then declare his income from the sale as $2000. It seems sensible, but the courts have ruled emphatically and repeatedly that It Does Not Work That Way. If he really wants silver, why wouldn't he want to get something much closer to his original asking price, and then just buy silver with the proceeds? It seems puzzling.
Ok to clarify a bit. He wants 48k cash for the car which is a good price IMO. He buys and fixes cars up for profit so he is looking for a good way to get into silver. A hypothetical between he and I turned into a real like offer 2000 BU american eagles for the car plus I have to pay the tax and fees whatever that adds up to.
Well, that certainly sounds within the range of up-and-up negotiation. After reading some of the threads on PM forums, I have a tendency to be suspicious of people doing deals like this. My apologies for what was probably an off-topic reply at best.
Sounds like you already decided to buy the car and what you really need to decide now is whether you want to hold onto the silver or "spend" it now. The answer to that should be in whether you think the price of silver is going up, down, or stagnating over the next several years. If you think it's either going down or stagnating, that would be in favor of giving him the SAEs you already have.
My problem is I need to get the garage done before I buy it, so we'll see. I think I will probably look for a good deal and have them dropped shipped. Just feels like silver is gonna be in the $30's in the next 5 years. Thanks for the help guys i'll post the you tube video after i finalize the deal don't want anyone offering him 2100 eagles
Also, just incase I decide to sell a bit of my silver here. What is the normal cost of an eagle on here thats a good price? i.e. spot + $1
The whole thing sounds fishy to me. The car is worth $48k, but he is willing to sell it to you for $40k, but he wants his payment in bullion instead of a check/cash? Why? I can't seem to make sense of it unless his intention is to do something shady (tax evasion?). Run the other way IMO.
He ended up getting 55k cash for the car. And if you can show me where to get 4 cases of eagles drop shipped for $40k I'll take a few of them.
