Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Co-worker recommended I buy Platinum
Old 10-12-2016, 05:09 PM   #1
Dryer sheet aficionado
 
Join Date: May 2016
Location: San Jose
Posts: 39
Co-worker recommended I buy Platinum

My co-worker recommended I buy Platinum based on its value relative to Gold:

Platinum Prices vs Gold Prices | MacroTrends

My co-worker said buying/selling an actual metal (gold, silver, platinum...) incurs no taxes if the transaction is > $1500. I doubt this is true.....

I probably won't do it, but thought I would inquire if others on this board hold metals long term and buy Platinum in particular (as opposed to Silver or Gold)?
__________________

__________________
krldrummerboy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-12-2016, 05:13 PM   #2
Recycles dryer sheets
 
Join Date: May 2013
Location: Toronto
Posts: 157
I assume you mean < $1500 rather than > $1500. I also doubt it's true but I'm not American so I can't swear to it.

I would never buy physical metal. You have to store it. You have to pay fees both to buy it and to sell it.
__________________

__________________
Spudd is offline   Reply With Quote
Old 10-12-2016, 05:14 PM   #3
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
After my wife died I sold all her gold and silver jewelry and bought another motorcycle.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-12-2016, 05:17 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Posts: 6,430
I hope you realize that capital gains on the stuff are taxed at ordinary income rates, not the lower rates for securities.
__________________
braumeister is offline   Reply With Quote
Old 10-12-2016, 05:20 PM   #5
Dryer sheet aficionado
 
Join Date: May 2016
Location: San Jose
Posts: 39
He said there were no taxes on selling precious metals as long as the transaction as > $1500. I don't think he knows what he's talking about. I am sure it's rather complicated since some items could be collectors items or investment metals. I was more interested in if anyone here buys platinum as opposed to gold and why
__________________
krldrummerboy is offline   Reply With Quote
Old 10-12-2016, 05:22 PM   #6
Dryer sheet aficionado
 
Join Date: May 2016
Location: San Jose
Posts: 39
Thanks braumeister. That's what I thought. Thanks for confirming!
__________________
krldrummerboy is offline   Reply With Quote
Old 10-12-2016, 05:27 PM   #7
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 3,294
i bought my metal 15 years ago from monex.com - I think gold was $280 an oz then

Platinum looks underpriced
__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Old 10-12-2016, 05:29 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 1,791
Quote:
Originally Posted by Spudd View Post
I assume you mean < $1500 rather than > $1500. I also doubt it's true but I'm not American so I can't swear to it.
Some US states exempt metals from sales tax, some depending on the amount of the purchase.
__________________
GrayHare is offline   Reply With Quote
Old 10-12-2016, 11:11 PM   #9
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 2,769
I won't buy metal, unless it was in coin form directly from the actual place that makes them, because someone is making very good forgeries of precious metals and selling them, the forgeries are so good they even fool dealers who have ended up with filled bars.
Using tools to verify the bars/coins doesn't detect the fake ones.

Beyond that, the reason I don't like precious metal is the buy/sell spread, storage, and lack of nice tax treatment.

http://video.foxnews.com/v/184956115...#sp=show-clips
__________________
Sunset is offline   Reply With Quote
Old 10-13-2016, 12:13 AM   #10
Dryer sheet aficionado
 
Join Date: May 2016
Location: San Jose
Posts: 39
Thanks Sunset for these words of caution
__________________
krldrummerboy is offline   Reply With Quote
Old 10-13-2016, 07:45 AM   #11
Full time employment: Posting here.
 
Join Date: Apr 2011
Posts: 886
Quote:
Originally Posted by krldrummerboy View Post
My co-worker recommended I buy Platinum based on its value relative to Gold:
Why? I think there's large enough markets for both that they're fairly priced for today's circumstances. Unless someone is hoarding & trying to create a bubble.
__________________
gerntz is offline   Reply With Quote
Old 10-13-2016, 08:40 AM   #12
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 2,769
Quote:
Originally Posted by gerntz View Post
Why? I think there's large enough markets for both that they're fairly priced for today's circumstances. Unless someone is hoarding & trying to create a bubble.
I don't know if anyone would do that after the Hunt Brother's tried to corner the silver market back in the 70's, but you never know

Educate Yourself - The Hunt Brothers and the Silver Bubble

"
In 1973, the Hunt family of Texas, possibly the richest family in America at the time, decided to buy precious metals as a hedge against inflation. Gold could not be held by private citizens at that time, so the Hunts began to buy silver in enormous quantity.
In 1979 the sons of patriarch H.L. Hunt, Nelson Bunker and William Herbert, together with some wealthy Arabs, formed a silver pool. In a short period of time they had amassed more than 200 million ounces of silver, equivalent to half the world's deliverable supply"
__________________
Sunset is offline   Reply With Quote
Old 10-13-2016, 09:39 AM   #13
Full time employment: Posting here.
 
Join Date: Apr 2011
Posts: 886
Quote:
Originally Posted by Sunset View Post
I don't know if anyone would do that after the Hunt Brother's tried to corner the silver market back in the 70's, but you never know
That thought is why I added my last sentence.
__________________
gerntz is offline   Reply With Quote
Old 10-13-2016, 10:02 AM   #14
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 3,294
I guess I can crack out a silver eagle and use it to mark my ball on the green again?
__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Old 10-13-2016, 01:30 PM   #15
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 2,769
Quote:
Originally Posted by Big_Hitter View Post
I guess I can crack out a silver eagle and use it to mark my ball on the green again?
Too bad you missed selling it in 1980 when it was worth ~$54 due to the Hunt Brothers.
Now it's just 18.89 at best.
1 oz Silver Eagles for Sale | APMEX Silver Eagle Coins | Silver Coin Investment
__________________
Sunset is offline   Reply With Quote
Old 10-13-2016, 01:39 PM   #16
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
The silver jewelry was worth so little when I sold it that I saved some and melted it into a free form "blob" with a torch and made this little goodie;



Weighs about 2 troy ounces and I use it for a card protector when I play poker.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-13-2016, 01:39 PM   #17
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 3,294
Quote:
Originally Posted by Sunset View Post
Too bad you missed selling it in 1980 when it was worth ~$54 due to the Hunt Brothers.
Now it's just 18.89 at best.
1 oz Silver Eagles for Sale | APMEX Silver Eagle Coins | Silver Coin Investment
i think they were about $5 an oz when I bought them
__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Old 10-13-2016, 01:59 PM   #18
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 1,780
There have been no taxes paid or collected on sliver, gold or platinum purchases if in excess of $1000 here in Texas for many years now. I've done it many times in the past. I understand there is a new law that eliminates the $1000 limit now so there is no tax for any amount. I understand that can vary by State.
__________________
Car-Guy is offline   Reply With Quote
Old 10-13-2016, 02:03 PM   #19
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 39,407
Quote:
Originally Posted by Car-Guy View Post
No taxes collected on sliver, gold or platinum purchases if in excess of $1000 here in Texas. I understand that can vary by State.
True. And the tax for under $1,000 was eliminated in 2013.

Quote:
As of October 1, [2013] the sales tax levied on purchases of gold, silver and platinum bullion and numismatic coins in Texas is now eliminated. It is the first time that a state has expanded an existing sales tax exemption for gold and silver.

Previously, Texans were paying 6.25% on all precious metals purchases under $1,000,...
Texas eliminates sales tax on precious metals coins - Mineweb
__________________
Numbers is hard.

Retired in 2005 at age 58, no pension

REWahoo is offline   Reply With Quote
Old 10-13-2016, 02:20 PM   #20
Dryer sheet aficionado
 
Join Date: May 2016
Location: San Jose
Posts: 39
Looks roughly split down the middle. My state has no tax if > $1500. Woohoo


States That Collect Sales Tax on Precious Metals
Alabama charges a 4% tax (with an additional 4-5% County & City tax)
Arkansas
Connecticut (when the amount exceeds $1,000)
District of Colombia
Florida (when the value exceeds $500)
Indiana
Kansas
Kentucky
Louisiana
Maine
Minnesota
New Hampshire
New Jersey
New Mexico
Nevada (when the coin of bullion sells for more than 50% of its “Face Value.” However, private mint bars and rounds are exempt from taxation.)
Nebraska
North Carolina
Ohio
Oklahoma
Tennessee
Vermont
Virginia
Washington State
West Virginia
Wisconsin


States That Do Not Collect Sales Tax on Precious Metals
Alaska (However, local government taxes may still apply.)
Arizona
California (when the value of coins or bullion exceeds $1,500)
Delaware
Georgia
Idaho
Illinois
Iowa
Maryland (when the value of numismatic items and bullion exceed $1,000)
Massachusetts (when the value of coins and bullion are exempt when over $1,000)
Michigan
Mississippi
Missouri
Montana (However, there may be a 3% Provisional tax in certain communities.)
New York (when the bullion’s value exceeds $1,000)
North Dakota
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Texas (when the value of the coins and precious metals exceeds $1,000)
Utah
__________________

__________________
krldrummerboy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
PenFed Platinum Rewards devalued calmloki FIRE and Money 31 08-27-2013 09:49 AM
Bronze, Silver, Gold, Platinum Differences Jerome50 Health and Early Retirement 1 06-13-2013 11:28 AM
PenFed Platinum Cash Rewards Card is changing Sue J FIRE and Money 24 03-02-2012 01:40 PM
Platinum Visa Card PaulNZ FIRE and Money 50 12-10-2008 09:30 PM
Penfed Visa Platinum Cash Rewards new benefit? ESRBob FIRE and Money 4 01-03-2008 08:47 PM

 

 
All times are GMT -6. The time now is 02:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.