Unfortunately, some squeamish dealers report more customer transactions than the law actually requires. At Money Metals Exchange, we have examined the law very closely and therefore do not report the purchase of metals about 99.997% of the time, with one extremely rare exception. For a disclosure requirement to be triggered, BOTH of the following conditions have to be met:
The transaction is (or related transactions are) larger than $10,000
in size, AND
Payment is made using actual cash
(i.e. Federal Reserve notes and U.S. coins) or with two or more cash instruments
(defined as money orders, cashier's checks, or traveler's checks) which, individually, are $10,000 or less but when totaled together equal more than $10,000. Personal checks, debits, bank wires, and credit card payments are NOT considered cash or cash instruments, and, therefore, purchases using them do not trigger disclosure by a dealer regardless of their amount(s).
The IRS disclosure document involved is called Form 8300, and it's applicable to all cash transactions in the broad U.S. economy meeting the above conditions – not just precious metals transactions. To date, Money Metals Exchange has completed over 300,000 transactions, and we have been required by law to file Form 8300 fewer than ten times.
Money Metals maintains your privacy to the best of our abilities
Likewise, we must report the SALE of your precious metals only in extremely rare circumstances: Of all retail silver products, only pre-1965 "junk" silver coins are arguably subject to reporting on IRS Form 1099B, but only in quantities of $10,000 face value or more
– more than $125,000 of current silver value. Sales of silver bullion rounds, 10-ounce bars, and 100-ounce bars do not trigger a Form 1099B filing requirement.
Sales of gold bars that are each smaller than one kilogram (32.15 ounces) absolutely do not trigger a 1099B
– nor do sales of U.S.-minted gold coins such as the American Eagle. However, sales of certain one-ounce foreign-minted gold coins (Krugerrands, Maples, and Mexican Onzas only) currently require a 1099B when a customer sells 25 ounces or more.
And finally, sales of platinum bars larger than 25 ounces and palladium bars larger than 100 ounces
trigger a 1099B.