Silver is moving

[DrHenley]

Silver is finally starting to take off.

 

[Gennadievich]

It is very often seen on American forums that Americans prefer to keep their savings in Silver, but not in Gold.
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It is very strange.

 

[DrHenley]

I have both.

What we call "junk silver coins" or 90% silver American coins which have no collector value, have been available in large quantities at the spot price of silver which made it really easy to buy silver. When I bought them at a coin shop they would stack them up on the scales and weigh them, multiply by .9 and then multiply that by the spot price of silver. All of the gold coins in the coin shop had hefty markups over the spot price. It took a lot of work to buy gold and not get ripped off.

 

[Brent S]

My favorite silver is worn peace and Morgan silver dollars. They have no real numasmatic value as far as coin collecting goes but are instantly recognized as classic old American coins and are desirable by most that see them. The size and silver content are large enough to trade easily and be portable. The problem with gold is one ounce is not very practical for barter uses. I still believe having some of each is a good idea though.

 

[DrHenley]

Looks like Silver is stalling, but Gold is not. Gold is very close to the all time high right now. I'm thinking it may be a little TOO high.

 

[TexasFreedom]

Silver has had quite a week. Keep in mind, any new preppers, precious metals (PM) are not for beginners. Food, ammo, water, location, debt payment.... all of those should be your priorities. Once you have them, THEN you can look at PMs.

Doc, I think silver & gold diverged years ago. It used to be they were a tight 15:1 ratio. But that hasn't held true for years. Silver has been in a coma for 8+ years, and suddenly is waking up. I agree that gold may be peaking, but silver has lots of room.

Brent, I recommend silver in varying options. I look at it as a trading commodity if SHTF. Am I buying a goat, a cow, or a cannon? Old silver quarters/dimes are fine for little things. Silver dollars for modest items. And for bigger items, look into 10oz bars. $250 value today, handy for bigger items. I've seen 100oz bars, but there aren't many things you'll be buying for $2500 if SHTF.

 

[DrHenley]

I use the 5 ounce America The Beautiful "hockey pucks" instead of bars. Much more difficult to counterfeit.

 

[Gennadievich]

well, the gold coin market is international, so you can buy coins from any country.

The most popular Russian ones, which are easy to buy and sell in a bank:

1. "Imperial", late 19th century

2. Soviet "chervonets", first half of the 20th century

3. Russian, "Georgiy Pobedonosets" early 21st century.

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I have several of "Georgiy..". , bought it in 2010 for $ 233. Now it costs $ 500.
Size:



Of course, it's better to have as much as possible, like this:

 

[DrHenley]

We used to be able to buy gold coins in a bank, but no longer.

You can order them online from the U.S. Mint though. But it's usually cheaper to get them from coin shops or eBay. eBay takes a lot of work, but if you put the effort in, you can often get both gold and silver coins for the spot price or less. Especially when the price is fluctuating.
Besides American gold coins, I have bought gold coins from South Africa, Great Britain, Isle of Man, Netherlands, China, Australia, Canada, and Cyprus.
My favorites are the Isle of Man Angel, and the 1963 British Sovereign

 

[Gennadievich]

There is an idiotic law in Russia:
If you sell gold bills, you must pay Value Added Tax (20 percent of the sale!).
In addition, you must pay Income Tax (13 percent)
For example:
you bought a gold bar for 100 rubles, then sold it for 200 rubles
you pay:
- 40 rubles first tax
- 8 rubles - the second tax.
total, profit 52 rubles
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Therefore, Russians never buy gold bars, but buy gold coins. In this case, there is no first tax.
If you bought a gold coin for 100 and sold for 200, then you pay only 13 rubles a second tax.
total, profit is 87 rubles.

 

[DrHenley]

If sold within a year, any profits on precious metals are taxed as short term capital gains, which is considered regular income and taxed the same. If over a year, it gets more complicated. It is taxed as long term capital gains at your marginal tax rate, but at a maximum of 28%. It doesn't matter whether it's coins or bars.

However, if you hold the precious metals in a Roth IRA retirement account, then after a certain age, you have no tax on the profits. I just made a tidy profit on the sale of $4,000 worth of silver in a Roth IRA, which I can take out of the IRA at any time tax free. That was only a small portion of my silver holdings.

 

[Gennadievich]

If sold within a year, any profits on precious metals are taxed as short term capital gains, which is considered regular income and taxed the same. If over a year, it gets more complicated. It is taxed as long term capital gains at your marginal tax rate, but at a maximum of 28%. It doesn't matter whether it's coins or bars.

However, if you hold the precious metals in a Roth IRA retirement account, then after a certain age, you have no tax on the profits. I just made a tidy profit on the sale of $4,000 worth of silver in a Roth IRA, which I can take out of the IRA at any time tax free. That was only a small portion of my silver holdings.

very interesting..
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you can compare: In Russia:
- the income tax rate is fixed for everyone and equals 13 percent
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there are 2 ways to pay income tax
1.if you chose method 1, you will pay 13 percent of the total sale amount, and not of the difference between the buy and sale, if you sell the property before the time:
- gold, bonds, stocks, real estate - 5 years
- car - always.
After this period, you do not pay tax.
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if you chose the 2nd method, then you pay 13 percent tax on the difference between buying and selling, but you have the right to buy and sell at least every day
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there is a 3rd way for real estate. You just have the right to reduce the taxable base by 1 million rubles once a year
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Pensioners pay tax in the same way as ordinary people, with the exception of real estate and car transactions.
- pensioners do not pay tax on the sale of an apartment if it is the only 1 apartment, car or garage.
- pensioners do not pay tax on the sale of a land plot if its area is not more than 600 m2.

in addition, pensioners have a large tax discount on all property, if this property is in a single copy
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finally..
you can not go to the Tax Office if you have no income other than your Salary or you received income from the sale of Government bonds or deposits in the bank.