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Thread: Best way to safely buy physical gold and not leave paper trail (and other questions)

  1. #1

    Default Best way to safely buy physical gold and not leave paper trail (and other questions)

    I've searched the forum regarding this issue and found a "mish-mash" of information. I would appreciate it if anyone can help me answer these questions. I currently have some money in the SPDR Gold Shares ETF (GLD), but would like to get my hands on some physical gold, too, to get some of the advantages of holding physical gold.

    Questions on buying:
    1. What's the best place to buy physical gold and "sidestep" future capital gains issues?
    2. If I purchased physical gold at my local coin dealer, would the dealer record my information and report it to the government?
    3. Do local coin dealers accept all cash transactions - and if so, would that help me avoid capital gains issues in the future?
    4. If I purchase physical gold over the web (or phone) from a national dealer, would the dealer record my information and report it to the government?
    5. Is using a credit card for purchase a no-no? Fairly obvious, but I just want to make sure.
    6. Are there any other good strategies to sidestep future capital gains issues?

    Questions on selling:
    1. Does one have to pay capital gains on physical gold sales? Fairly obvious, but I just want to make sure.
    2. Is there a legal way to "sidestep" paying capital gains taxes on physical gold sales?
    3. What's the best place to sell my physical gold and safely "sidestep" capital gains issues?
    4. Are there any other good strategies to sidestep capital gains issues?
    Last edited by zzzz8; 11-22-2008 at 02:31 PM. Reason: Correct spelling

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  3. #2


    Also, if anyone has information on the tax implications for a digital gold currency such as GoldMoney, please let me know.

  4. #3


    Your questions overlap.


    Buying online or over the phone leaves a paper trail. Buying locally depends on your dealer. Some local dealers will not even care to know your last or first name and will accept cash. You can use your credit card but that can leave a trail. Your best bet would be buying locally from a friendly (careless) dealer.


    There's no legal way around capital gains tax. I guess this is an craigslist type issue. When you buy a new television from craightlist locally, do you insist "joe the seller" give you receipt for the purchase and charge you for sales tax?
    Last edited by constitutional; 11-22-2008 at 03:49 PM.

  5. #4


    Don't know about the laws in America, but individual purchases of gold under 10,000.00 need not be reported to the government in Australia. This includes dealers and mints. Perhaps you have similar laws which apply in your state.

  6. #5


    when i buy physical gold or silver... i go into my bank and take out cash (you don't need to tell them what it is for obviously)... then i take the cash to the coin store and buy the coins for cash. There is no record of the transaction. i do not get a receipt. and the coin store people have no idea who i am. they don't know my name or anything about me. so basically, no one will know what i spent my money on. for all they know, i could have taken the money out of the bank to buy anything. there is no record or evidence of me owning any of this gold. then, when i go to sell the gold years later, you just do the process in reverse. you go to same coin store (or a different one) and you sell them your gold back for cash. then it's up to you to declare any capital gains you may have made.

    i think this is one of the best ways to buy gold because if the government decides to confiscate gold, you can just hide it and they have no idea that you own it. also, you can use this method to get around capital gains taxes. therefore, this is much better than using an ETF (except it's not as easy to trade in and out of it of course). but if you're holding gold for the long haul... you might as well sell your ETF, then take the cash out of the bank (under 10K at a time) and buy up physical gold without anyone knowing.

  7. #6


    unless you're buying like 100 grand of gold, the government isn't gonna're small beans to them and they usually only go after the big boys who they can get alot out of, so don't worry. You're not worth their time, as long as you put up a fight and show them you know what you're talking about, they will usually leave you alone, so I think you're fears are over stated....just buy however you like.
    Mega Quakanami is coming to California, then WW3
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