Thinking about our first gold purchase!

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My dad and I are keen on investing in 1 oz of gold each. Should we go for bars or coins? Our aim is to get as close to the spot price as possible; we’re not aiming for collector’s items.
We’ve been building up our silver stacks and thought it’s time to diversify into precious metals. And let’s face it, gold has that irresistible allure!
Any recommendations or advice on whether to go for bars or coins? Appreciate any insights!

A question by Zoloto
5

In the US, coins boast higher liquidity compared to bars, while in some Asian countries, bars take the lead in popularity. Interestingly, certain American states categorize bars as jewelry, subjecting them to taxes and stringent selling regulations. Selling bars involves providing extensive identification, tax information, and registration, with a mandatory waiting period of thirty days before resale is permitted, primarily for verification against stolen goods. Coins, in contrast, bypass these requirements, offering a smoother selling process.
Considering liquidity in gold investment, coins tend to outshine bars. Their smaller size enables quicker sales and allows for selling in customized increments, aligning with individual needs. However, the collectible aspect of coins creates varying demand levels among different types. To fetch the best price, maintaining collectible coins in pristine condition is crucial.
Conversely, selling gold bars presents challenges due to their bulkiness and storage demands. Their indivisibility limits the ability to sell in portions, making coins a more flexible option for selling smaller amounts. Therefore, bars cater more to long-term investors seeking wealth preservation rather than engaging in short-term buying and selling for profit.
Outside the US, the applicability of these dynamics is uncertain, and the preferences and regulations may differ significantly.

NBS

NBS

4.1


Either option works for me, but I lean towards round coins. For some good deals, check out the sales pages on major online bullion dealers like JM or SD Bullion. SD Bullion tends to offer lower premiums, so that’s usually my first stop for shopping.

5

In the U.S., bars might be your go-to choice for getting as close to the spot price as possible.
Start by comparing prices at your nearby coin shops and check out dealers such as SilverGoldBull, SDBullion, HeroBullion, and others for competitive rates. Be aware, though, that in certain U.S. states, bars might be subject to taxation.
While bars usually carry a lower premium, it’s essential to verify their authenticity. Your local shops often have sigma machines or XRF for testing, ensuring you’re getting the real deal.

2.4

The government wouldn’t likely bother chasing after your capital gains from precious metals if we’re talking about relatively small amounts, not worth their effort or resources.
To stay under the radar:
Control Purchases: Avoid official reporting by not spending over $10,000 in cash on bullion within a 24-hour period. Cashier’s checks under this amount, along with personal checks, money market withdrawals, and wire transfers, typically bypass reporting. Dealers won’t know if you’ve made multiple cash purchases from various places in a single day, but watch out for direct wire transfers exceeding $10,000 to different dealers—they might raise attention.
Manage Sales: Private sales between individuals typically evade official forms or reports. However, when selling to a business, certain types, quantities, and sizes of gold trigger reporting requirements. For instance, transactions involving specific quantities of certain coins or larger-sized bars usually get flagged for reporting. But exemptions apply to various well-known coins and fractional gold coins.
By keeping both purchases and sales off the record, the government remains unaware of your gold ownership, thus avoiding potential taxation or scrutiny. The hassles and legalities involved in obtaining this information would outweigh its worth to the authorities.

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