Thinking Of Selling My Silver Quarters

I just lost a long post because the system logged me out...

Long story short, this very helpful and easy to read (sarcasm) document spells out the rules as they pertain to the reporting of capital gains/losses from sales and exchanges of property:

http://www.irs.gov/publications/p544/ch01.html

Qualified like kind exchanges can be tax exempt, but there are lots of rules. For example, the exchange of one piece of real estate for another can be tax exempt, but exchanges of different sex livestock are not.

But it is very clear that the rules do apply to exchanges even were no money is involved:

 

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I've seen that list on a few different bullion sites, but I do not have a direct source from the IRS. I suspect it has to do with the increased reporting requirements that came about after 9/11, and as I understand it, it only applies to the reporting by dealers, not declarations of capital gains/losses by individuals.

 

Thanks. Some of the qualifying real estate exchanges are known as "Starker" or "Section 1031" exchanges after a famous 1979 court case. See Wikipedia.

 

"but exchanges of different sex livestock are not..."

Oh-oh, transgender discrimination!

 

C'mon, please don't tease the OP, who I believe said he MAY have several hundred 90% Silver quarters.

Based on that estimate, he'd probably be lucky to get ~four 1/10 ounce American gold Eagles, and nothing close to a St. Gaudens of any grade in trade.

JMHO

 

I thought 1031 exchanges dealt with in-kind real estate ?

I'm an investment analyst, not a real estate guy or tax guy, so this is above my pay grade.

 

What part of "...qualifying real estate exchanges are known as...Section 1031..." do you not understand??

vs.

I thought 1031 exchanges dealt with in-kind real estate ?

 

Argumentation unintended, Mr. Starker may also have detrimentally been informed/adjudicated to the difference of specificity presentation.

Would you accept a difference between the following two correct analogous statements posed in the manner of your query?: what part of "...qualifying vehicles are known as...Fords..." do you not understand??

vs

I thought Fords were produced by Ford Motor Company?

I believe the courts established specificity, as "like kind" to be the key element in determining actuality of "title". However, I've been known to be wrong.

No offense intended in my response to your open query, and am amenable to constructive correction.

JMHO

 

Warren Buffet bought about a 100 million oz of silver 10-15 years ago. I guess he couldn't afford gold?

 

It's clearly not $2,000 face.

The OP can determine exactly what he has by weighing them (being sure that, indeed, it is all US 90% silver).

Each gram of 90% silver equals $0.04 face. Melt value is not quite 12X face now.

10 pounds is just about 725 quarters, $181.25 face, a bit over 131 troy ounces, about $2,160 melt.

 

My guess is he didn't own an ounce of physical.

 

Guys, I posted most of my inventory on Page 2 of this thread.

 

What did Buffett have to say? This (on February 3, 1998):

During 1998, Berkshire has accepted delivery of 87,510,000 ounces in accordance with the terms of the purchase contracts and the remaining contracts for 42,200,000 ounces call for delivery at varied dates until March 6, 1998. To date, all deliveries have been made on schedule. If any seller should have trouble making timely delivery, Berkshire is willing to defer delivery for a reasonable period upon payment of a modest fee.

Over 30 years ago, Warren Buffett, CEO of Berkshire Hathaway, made his first purchase of silver in anticipation of the metal’s demonetization by the U.S. Government. Since that time he has followed silver’s fundamentals but no entity he manages has owned it. In recent years, widely-published reports have shown that bullion inventories have fallen very materially, because of an excess of user-demand over mine production and reclamation. Therefore, last summer Mr. Buffett and Mr. Munger, Vice Chairman of Berkshire, concluded that equilibrium between supply and demand was only likely to be established by a somewhat higher price.
- See more at: http://streetwiseprofessor.com/?p=6027#sthash.S67ycg51.dpuf

 

I stand corrected. Thanks for the info!

 

I hate to rain on anybody's parade here but how about some pics of all that silver?

 

“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.”

Of course gold is more valuable per ounce! Have you ever thought of the gold to silver ratio? Historically the ratio is around 1 ounce of gold for 12-20 ounces of silver. Recently the ratio is hovering around 1:70-75. I recommend buying silver. It has a much, much bigger upside. I do admit that you will need some patience and a tough stomach to deal with the market changes.

 

I agree that silver has more upside IF we have a precious metals rally/rebound.

But that is ALWAYS the case with silver and gold: silver outperforms during bull markets.

If they are in a trading range or declining, the ratio is meaningless for investment purposes.