@KittySoftPaws
Before you BUY physical gold....make sure you understand about SELLING it should you decide to or need to now that you've tied up your money in physical gold.
There are tax implications.....Gold is a "collectible" to the IRS, with a 28% capital gains tax rate.. and falls under thier specific rules on taxation.
So if it goes UP and you want to sell it....you better understand those rules!!!
Also understand HOW many coins you can sell at each time without the sale being reported to the government, at which time they KNOW you just sold an asset with a 28% capital gain tax rate.
The "ten thousand dollar limit" on American Eagles for instance.....you can sell up to 10000 dollars in Eagles without a report to the government, but UNDER 10000 dollars in American Eagles, they do NOT have to report...
So....guess what? The dealers KNOW you don't want a sale reported to the government, so on sales UNDER 10000 dollars, they give you less per coin.
And if they are NOT American Eagles ( like Maple Leafs ( Canada) or Mexican gold or Austrian Philharmonics ( both beautiful)...they MAY have MUCH lower reporting requirements per coin sold)...
Understand that you generally can NOT buy gold at what you see it trading for per ounce on the stock ticker. There is generally a "premium" per coin, some places now it's up to 150 dollars per coin, and on E-bay, some are up to 300 dollars per coin.
When you SELL...you also pay a premium. If gold is selling for 2000 an ounce and you go to sell it ( coins) you will probably get less per coin....because the dealer takes a cut for buying it from you.
It's tricky if someone ( like a grandparent) "gives" someone gold coins with no record. Now you don't have a cost basis to report what the gold what purchased for if they didn't give you a reciept. If the coin has a date on it...that will be the cost basis. Gold used to sell at one time for 400 an ounce.....imagine the gain!!!
Otherwise, if you INHERIT the gold coins in a will, the coins are valued the date of the inheritance.
Total pain in the arse if you ask me.
Better to invest in index or ETFs and hold for the long run. INSTANTLY liquid for the dollar amount you see on the statement.
This is NOT financial advice and I am NOT a financial advisor.
And..don't EVER buy anything advertised on TeeVee entertainment programs or the back pages of magazines without doing your homework.
They ALL leave out the part about SELLING the coins if you have to......and that's the whole purpose of accumulating assets in the first place..to sell them if you need to!!!
Go to the IRS website and type in "Selling GOLD and collectibles" and you will find a list of the IRS Publications that deal with the subject.
Irs Dot Gov.
Hope this helps. Keep in mind you can NOT buy a loaf of bread , a bag of groceries, a car or a lawn mower with gold coins.
You'd have to SELL them first to raise the cash and that's where it gets ridiculous.!!!!