trading in gold, krugerrands

[tightasadrum]

My late aunt left me a number of gold Krugerrands. My instinct is to find a safe place to store them and forget them until a world financial meltdown. But I am curious,..

1. How much off the spot price of gold does it cost to sell these things? The price yesterday was over $900/oz. My guess is that there is a significant discount off the spot price of gold to sell them.

2. Who is the best company to sell them to?

3. The coins are located halfway across the country. How does one safely get them shipped? Should I drive there myself to pick them up?

4. What would you do with them, keep or sell?

 

[dex]

The question is - If she left you cash; would you buy gold K? If not why would you hold them?

 

[nphx]

You would hold them to avoid capital gains tax or to exclude your self from the govt "means tests" being pitched by those that are supposed to represent us.

 

[tightasadrum]

I have another aunt who has been convinced for years that the dollar is on the verge of total collapse. (Lately the dollar has been making her look less crazy.) Gold became her hedge against the coming disaster. Apparently she convinced her sister also. Maybe some of her philosophy rubbed off on me too, although I've never particularly liked the fact that gold pays no dividend or interest on it's value. I did hold onto some pre-1965 silver coins.

But how do you sell them? What is the discount to spot value to sell gold? Has anyone ever actually sold gold or silver coins on this board?

 

[calmloki]

Here you go. Gold Coins and Bullion Dealer - American Gold Eagle, Canadian Maple Leaf, Panda and Krugerrand Gold Coins They are buying Krugerands for $876 this morning. Think the last Philharmonics we bought were just mailed to us.

 

[saluki9]

You would hold them to avoid capital gains tax or to exclude your self from the govt "means tests" being pitched by those that are supposed to represent us.

What capital gains tax? He just inherited them.

 

[nphx]

Unsure about his/her case. If i buy an ounce.. and sell for cash 5 years from now... cash transaction off the grid.

 

[OAG]

Inherited - why would there be capital gains? Stepped up basis! Good reasoning on why to sell! (DEX). Saluki9, beat me to it.

 

[tomintucson]

Regarding selling your Kruggerands, the simplest method would be to look up rare coin dealers in your local yellow pages. Some or all will also function as your local precious metals dealer. I bought my Kruggerands at $8 and $10 over spot (which fluctuates throughout the day), the dealer was buying for the same amounts under spot. Therein lies the dealer's commission. Commissions are higher for less-common coins such as Golden Eagles or Maple Leafs. But it's all gold...

Tom

 

[yakers]

It gets more complicated in some places. I talked to a coin shop in California and if I buy/sell something like 3 coins (don't remember the exact number , but it is small) I would have to declare the transaction to the state and deal with potential tax issues. I too inherited a few coins and would not mind selling them if it was easy enough and I thought I could find a fair deal. My dad bought them fairly high and I don't know their value as of when he died. Just don't want to mess with taxes on such small stuff. They were just given tome when he died, no records of the transfer.

 

[tomintucson]

Yakers,

Point well taken on tax issues. My local dealer told me when I bought my coins in 2003 that he was required to report to IRS only on sales over 10 ounces. Larger positions could simply be liquidated in separate transactions. Of course, profits from metals are considered taxable income and are thus supposed to be reported...

Tom

 

[tightasadrum]

I checked with some brokers in the area. It looks like the cost to sell is 3%-5% of spot value depending on how many ounces and who the broker is.