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Thread: Coins or Bars?

  1. #1

    Coins or Bars?

    When buying Physical is it better to get coins or bars?

    I there a difference in treatment for tax purposes?

    Thanks.



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  3. #2
    Depends what you're buying for. If its just a store of value, then perhaps bars and rounds are better. They carry a much lower markup that coins. If you're saving for hyperinflation then I'd start out with junk silver (pre-1965 US 90% silver US coins). I think in a SHTF scenario those would be the most useful since they're small, recognizable and generally not counterfeited. If you want a combination of a long term "investment" and as a backup currency in case of hyperinflation then go for non-numismatic grade silver billion coins. Buy American Eagles, Canadian Maple Leafs, Mexican Libertads. They generally aren't priced too high above spot, are universally recognized, easily bought and sold and since they are coins, they are already legal tender.

    Whatever you do (unless you are buying as a coin collector) don't buy collectibles, proof coins or coin sets. The markup on these is very high compared to the metal value and they're generally harder to offload. Also, in a hyperinflation situation no one is going to give you a premium for their historic value.

    With regard to taxes, if you sell them off before you hold them for one year profits are taxed as normal income. If you hold onto them for over a year you're taxed at 15% capital gains rate.

    I believe sales tax does apply to bullion, but I might be wrong on that.
    Last edited by eduardo89; 04-05-2012 at 04:18 PM.

  4. #3
    Coins, because no one you know trusts bars.

    Coins are easy to prove forgery (or not) and every coin dealer has a mechanical device to do it.

    Bars - there is no standard, and therefore the dealer will have to get is assayed, at your cost.

    Unless you are talking big figure buys ($100,000 or more) stick with coins.

    (PS: As coins are currency, the dealer does not need to report the sale, nor is there sales tax)

  5. #4
    Arklatex
    Member

    There is only one bar I recommend buying and I have some listed on Ebay:

    http://www.ebay.com/sch/i.html?_from...t+deal+on+ebay

    Otherwise I'd go with Bullion Coins, it's my experience that the Canadian Wildlife series is the best to buy, a 3% premium over regular maple leafs and eagles pays for itself and more with a 3% premium at the sell price in 2-10 years out. Of all the bullion I've ever bought, hands down the Canadian Wildlife Series Wolfs best decision. These are investments. Morgans and US 90% Coins I can barely get spot for, bullion coins on the other hand pay off.

    good luck and you're headed in the right direction!



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