When buying or selling bullion (or coins for that matter), what does a buyer have to disclose to a dealer in terms of financial information. Back in the 70s/80s (I don't remember exactly) the Govt instituted rules around collecting SSN (for tax purposes) on certain transactions and as I recall there was a threshold (around $1K) when it would/would not be required. Is there still such a rule/law and is it widely followed?
So individual transactions aren't likely to be reported (especially cash ones) if they are not over $10K. Can't imagine a dealer is going to track cash transactions over the course of a month to see if a single seller/buyer has exceeded the threshold.
More information than what I can type can be found here: US Patriot Act And more specifically, here: Know Your Customer Many transactions in bullion and coin are disregarded. However, scrap precious metal is treated differently. Information on the seller of the scrap metal must be obtained. This is typically just the name, address, and gov't issued ID number (driver's license number is typical). Other than that, transactions are very easy to do. edited to include the following: Regarding tax issues- it is up to the seller to declare the gain or loss from transactions involving a financial instrument like coin and bullion. The dealer has no obligation to report transaction amounts to any government agency for taxation purposes.
That,s correct!! I used to be in the Air Conditioning field and always used to bring Tons of copper tubing home, Would process about 5 to 600 pounds A month @ $1.80 Per pound, Nice pocket change in the early 80,s Heck it made my mortgage payment on more then several occasions! But for that kind of loot these days you need to supply them with Your lifes story!!!
http://www.cmi-gold-silver.com/gold-confiscation-1933.html There is a lot of information about reporting requirements starting about half way down the page. I can't guarantee that any of it is accurate.
That part of the article is inaccurate and misleading. There is no way the government would let foreign governments or agents come in with $35 and get $35 face in gold coin, they would have gotten the amount of gold that they could have bought for $35, which would be an ounce of gold, or a $20 Lib plus a bit more. The difference was not a problem because no one came in with small amounts to redeem. Indeed governments did take their payments in gold coin, which is why a lot of it went to Europe. But the US government was not letting an ounce of gold go for a mere $20.67 like the above quote suggest was possible.
Oh by the way they always took my license number Off my car, They kinda did it in a sneaky way, When you Werent looking!!
I think the article meant to say that the US government counted a $20 Lib as one ounce of gold, so the foreign government actually received slightly less than the official exchange rate. I've never seen this before and I don't know exactly how the exchange worked in practice. There are no technical articles that I know of that explain the exact transaction mechanism except to say that gold was valued at $35 for international trade purposes. Since gold sold for slightly more in the free market, maybe foreign central banks were happy with the exchange. I just don't know.
The government revalued an ounce of gold from $20.67 to $35 an ounce, a profit of over 73% and they let old gold coins go at the $35 rate, a huge profit since they basically bought(stole) them from the American public at the old price of gold.
