Ten Commandments for Buying Gold and Silver...

1. Always take delivery.
2. Never buy premium if you can avoid it.
3. Buy bullion for business, numismatics for fun.
4. Buy silver first, then gold.
5. Buy small gold first, then large.
6. Never buy exotic coins or modern rarities or anything you don't understand.
7. Know your dealer.
8. What governments can't find, they can't steal.
9. Never swap bullion coins for U.S. $20 gold pieces.
10. Never break the law.

I found a site and posted link below. I wonder if the tip is good or bad? At first glance, it's good tip, but true? The number 8 sound like as long as I don't report to government, I can get away? Is it bad advice?

Let me know with your opinion on that article. Thanks.

Link

 

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Maybe a coin dealer could clarify Federal Forms 8300 and 1099B? I've also read that 1. If I'm buying silver, I have to report the purchase if it's $1,000 or over; and 2. if I'm buying $10,000 in coins I should pay using a check, not cash.

 

http://m.youtube.com/index?&desktop_uri=/#/watch?v=4TAtRCJIqnk

TC

 

My opinion is that this advice is worth what you paid for it. In this case, that would be nothing.

 

I agree with what Doug said. Taking info on how you should buy gold and silver from a gold and silver dealer is akin to taking dating tips from a rapist.
Guy

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costello: Thank you for your input.

doug and coleguy: I checked the website, the site isn't buy or sell any metals, but sell information on buying and selling metals. Did I missed something from that site?

Topcatcoin: And you point is what?

Tom B: The sake of argument. Is the tip as "Ten commandment is a good tips? Is it good to start buying silver first before buying gold or it's still good to buy gold at first?

 

Well they are trying to sell you on using their newsletter or other books in the store.

I think 8 and 10 have a conflict in my mind. 3 thru 5 are a matter of opinion - I have seen the recommendations for both depending on the market. Number 2 - well of course you don't want to pay a premium. About like me saying buy low and sell high. So I would take them with a grain of salt. I would agree with knowing your dealer and not buying something you don't understand. Just my opinion.

 

I chafe at "Commandments." But I don't like these, they're flawed.

#1) YES, but store as you wish, prudently.
#2) What does this mean? There's ALWAYS a premium on Spot ('melt') or you really ought to worry!
#3) Business? As for "numismatic value" (of certain things) I haven't decided yet. Everything depends on the mkt & price.
#4) Maybe. But if not constrained by capital limitations, DONT assume this is correct!
#5) NO I would never buy higher premium 'small Gold.'
#6) Never buy anything you don't understand LOL
#7) YES. And investigate his/her rep, thoroughly.
#8) ?? Up the dosage.
#9) At par, I should think not!
#10) I would clarify this, too.

 

Um, not sure what you'd have to report to the government. Private ownership of gold has been fully legal in the US since 1974 (and even between 1933 to 1974, exceptions were made for numismatic gold coins and certain jewelry, like wedding rings and family heirlooms). Now if you sell gold at a profit, strictly speaking you have to report that as capital gains, but if you buy more gold/coins with the profit it can be argued that's a like-kind exchange and you could delay the recognition of the gain. (Private ownership of silver the US was never illegal.)

I don't think that's what it's talking about though; I get an undercurrent of anti-government paranoia, the pervasive belief that the government is going to find some way to take your stuff (and not just through normal taxation, not to get political about it).

To the degree that you have any reportable gains, failure to report them would be a conflict of #10 lol... keep in mind you only have to report realized gains; if the gold you own goes up in value you don't have to pay any taxes on that gain unless/until you sell it. Ask a tax preparer (certified tax preparer/CPA/lawyer/registed agent, etc.) if you have any questions in this regard.

As for the others; 1: good advice (don't buy so-called gold shares, physically receive the gold!); 2. Um, you can't avoid it unless you pan for your own gold lol, people who make a living selling gold have to eat somehow. 3. No reason you can't do both. Numismatic gold holds its value pretty well too, and the price of gold will always be the floor of what these are worth. Some rarer gold coins will still be rare even if the price of gold drops, so may even hold their value BETTER than bullion. And it's more interesting to look at! 4. Bad advice; silver's never going to be worth anything near what gold is. If you can afford gold, buy it instead if you're looking at long term investing. Silver may have the potential for gains but it's not as popular, thus much less in demand, thus much less likely to make the kinds of gains gold does. 5. Eh if you're talking numismatics may be good advice; small coins tend to be the first to get melted down so these tend to be rarer. 6. Good advice in general! Always educate yourself about ANYTHING you buy period. 7. Always a good idea. 9. See #3, there's no reason that your gold investment can't also be in numismatic gold coins, and sometimes that's the better way to go.

 

I'm not sure about that site, but Franklin Sanders absolutely does deal PMs. I follow gold and silver prices using his silverprice.org and goldprice.org sites. He regularly posts commentary on silverprice.org, and occasionally mentions "special offers" that he has available.

He doesn't advertise his business very heavily there, at least not explicitly, but he's definitely in the business.

 

mark h, Juan and Troodon: I appreciate your input. It's nice to have different perspective to help us determine what's best way to invest silver and gold.

jeffB and Doug: Thank you for point it out. I missed the front page.

 

I like Rule #1. Beyond that.....meh.