Co-worker recommended I buy Platinum

[krldrummerboy]

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)?

 

[Spudd]

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.

 

[RobbieB]

After my wife died I sold all her gold and silver jewelry and bought another motorcycle.

 

[braumeister]

I hope you realize that capital gains on the stuff are taxed at ordinary income rates, not the lower rates for securities.

 

[krldrummerboy]

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]

Thanks braumeister. That's what I thought. Thanks for confirming!

 

[Big_Hitter]

i bought my metal 15 years ago from monex.com - I think gold was $280 an oz then

Platinum looks underpriced

 

[GrayHare]

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.

 

[Sunset]

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/1849561159001/fake-gold-bars-turn-up-in-new-york-city/?#sp=show-clips

 

[krldrummerboy]

Thanks Sunset for these words of caution

 

[gerntz]

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.

 

[Sunset]

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

"
[FONT=Arial,Helvetica,sans-serif]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.[/FONT]
[FONT=Arial,Helvetica,sans-serif]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"[/FONT]

 

[gerntz]

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.

 

[Big_Hitter]

I guess I can crack out a silver eagle and use it to mark my ball on the green again?

 

[Sunset]

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

 

[RobbieB]

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.

 

[Big_Hitter]

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

 

[Car-Guy]

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.

 

[REWahoo]

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.

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

 

[krldrummerboy]

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

 

[rodi]

Am I the only one who opened this thread thinking it was about health insurance types?

 

[Car-Guy]

Am I the only one who opened this thread thinking it was about health insurance types?

Maybe. But, it was obvious to me it was about precious metals or at least Platinum (Pt - 78). I'm so sick of hearing about heath insurance over the past few years, I may not have read this thread if I thought it was about health insurance.

The topic was open in the stock picking and market strategy section and not in the health section.