gold coins

How to Spot Fake Gold and Silver Coins (Warning Signs to Look For!)

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Counterfeit products are nothing new in any corner of the modern market. A large percentage of the alleged precious metals in circulation are counterfeits. This is a sad reality, especially if you use gold and silver coins as an investment, for a special collection, or as a hobby.

These fake coins are created by con artists and dishonest dealers who are found all over the market waiting to take advantage of unsuspecting buyers. A survey carried out by the Anti-Counterfeiting Task Force in June 2018 rated the Morgan silver dollar as the leading counterfeited U.S. coin.

On the other hand, the U.S. gold and silver American Eagle coins lead the list in the bullion category. Fortunately, the gold sector has put several measures in place to protect gold buyers.

The biggest question facing gold and silver buyers is how can you identify the genuine coins from the fakes?

How to Spot Fake Gold and Silver Coins

Here are the six best ways to spot fake gold and silver coins on the market.

1. The Magnet Test

The process involves taking the gold or silver coin, inclining it at a 45-degree angle, and putting the magnet over it. The silver’s low conductivity should make the magnet slowly slide over the coin. As for a gold coin, the magnet should slide right off.

Both gold and silver are non-magnetic elements. This is a vital fact you should always keep in mind whenever you want to test the legitimacy of gold and silver. If you have supposed sterling silver that attracts a magnet, it is counterfeit. Generally speaking, if your gold or silver coin attracts a magnet, it’s not an authentic coin or piece.

However, a few metal elements are magnetic, including iron, cobalt, and nickel. Besides the ferritic metals, other magnetic metals found on the market include gadolinium, samarium, and neodymium. It is, thus, possible to encounter some metals that are similar to silver and nonmagnetic — zinc, pewter, and aluminum are perfect examples.

It might be confusing at this point if you think about pennies minted in 1943, which are magnetic despite being made from zinc. Zinc is a nonmagnetic metal, but it makes up only a tiny coating of the coins. The rest is composed of steel, a ferromagnetic metal, which explains why the coins are attracted to magnets.

2. The Ping Test

The ping test is another quick way of determining whether silver coins are real or fake. If you drop or strike a legitimate silver coin on a hard surface, it should produce a characteristically long ping sound. The millions of fake coins available on the market are characterized by a dull noise. Based on the sound you get after dropping or striking the coin, you should be able to determine its legitimizes. This test, however, doesn’t tell the levels of purity in the coin, but it is a quick way of weeding out the counterfeits.

Silver and gold coins produce a characteristically solid sound when you drop them on wood and other hard surfaces. In contrast, the fake coins make a deeply hollow thud and a dull noise compared to authentic gold or silver.

3. Visual Inspection

There’s a slight difference in color between genuine and fake gold coins. If you’re familiar with coin appearances, you can most likely identify lettering issues in the inscriptions, which may exist in the wrong font. Plus, the fine details on the design may also appear cruder upon comparison. The tool marks are another significant clue when you’re determining the authenticity of a gold coin.

In the process of trying to hide their imperfections, fake gold coins commonly leave behind a distinctive abrasion, besides altering the mintmark. This is a great way of telling the genuine Morgan dollars apart, thanks to the rare ”CC” mintmark designed by the Carson City mint. It would help if you were cautious about suspicious marks, most of which conspicuously exist next to the key design features of the rare coin.

As mentioned above, coins that are attracted to magnets are fake in most cases. However, it is not always true that coins that don’t stick to the magnet are genuine. After doing the magnet test, you should also include other measures of determining a coin’s legitimacy 一 examining it thoroughly, for instance, while comparing it to a genuine sample is essential. You should also invest in a jeweler’s loupe or magnifying glass, which can come in handy when you’re conducting the comparison.

4. Measuring Weight

The weight plays a crucial role in discovering fake gold coins from real ones. It’s common for gold coins to have different weights despite having the same gold content. The trick in such cases is knowing the standard weight of authentic gold. The standard weight of gold is as follows:

  • 24 karat gold coins (1 ounce) 一 for example, Canadian Gold Maple Leaf coins 一 weigh 31.1 grams.
  • 22 karat gold coins 一 for instance, South African Gold Krugerrands and American Gold Eagles 一 weigh 33.93 grams.
  • There’s also the Saint-Gaudens and $20 Liberty Head gold coins, both of which weigh 33.43 grams.

That said, it would be helpful to bring a reliable portable weighing scale on the purchase day. Many metal experts recommend the American Weigh digital scale, thanks to its unmatched reliability. It is affordable, around $10 at major retail stores, and suitable for both small- and large-scale buyers. As you focus on the weight as a measure of authenticity, consider that an accurate weight doesn’t necessarily guarantee it is 100% original.

Thanks to their standard dimensions, this tip is most suitable for government-minted bullion coins. You should visit the official mint website and familiarize yourself with the measurements before shopping. Whenever you come across an extremely thick or large gold coin, odds are it is a fake.

Most counterfeit gold coins tend to be larger and thicker, making them heavier than the original ones. Besides the weight scale, you should also bring a set of calipers to the store to measure the sizing dimensions.

5. Measuring Diameter and Thickness

As buyers become more and more cautious about fake metals on the market, con artists are also enhancing their skills at the game. Today, they pay close attention to the weight of these fake coins to ensure that they match that of the real ones.

Luckily, matching the diameter or thickness of the authentic coins remains a great challenge for these scammers. A caliper is, thus, an essential requirement whenever you go out shopping for gold coins. Tekton calipers are one of our best recommendations. You should check both the diameter and the thickness of the coins as it is almost impossible to match the weight, thickness, and diameter of real gold and silver coins.

6. The Acid Test

Aqua regia is a mixture of hydrochloric and nitric acid. This method involves scratching the coin on the stone. You can also fill a notch on the coin to kill any chances of accidentally rating plated products as pure. There are many acid kits available for gold and silver, but they do carry risks you should consider before following through.

Common Warning Signs of Fake Gold and Silver Coins

If you still have doubts about the product’s authenticity after the above tests, here are additional warning signs to be cognizant of before buying. Gold, for instance, is an expensive product, and you can’t risk your money when your instincts feel that something is wrong.

Despite the latest move to produce more convincing counterfeits, the market still has numerous distinctively fake coins. It would help if you look for errors in the designs, wrong inscriptional fonts, a soapy or flat appearance, and other missing fine details on the coins.

It’s easy to identify extremely flat or uneven relief as a feature of a fake coin — and it would be best to look out for impossible dates, such as the popular fake-dated 1906 American Silver Eagle, which wasn’t minted until 1986.

Other features to look out for regarding fake precious metals include non-uniform or nonexistent reeds on the edges, seams on the edges, or places where the sprue was filed off from the counterfeit cast. Thanks to federal law, every replica of an existing coin should have the word “copy” stamped on it. Older replica coins were minted with an “R” on them to indicate they were replicas. Most con artists try to hide this stamp, which should be a warning sign. Others include:

  • Dealers who rush you into buying
  • Prices that seem unreasonably low
  • Reluctance to provide photos, concrete details, and a thorough inspection of the coin
  • Lack of online ratings and reviews
  • Attempts to switch the product after you have checked it out
  • Unwillingness to meet and transact in an open place under closed-circuit TV surveillance

Ways to Avoid Being Scammed By Fake Gold & Silver Coins

The best way to stay safe from dishonest dealers is by buying from reputable and established coin dealers like Wall Street Metals. All of our coin inventory has been verified and is housed at the Delaware Depository.

Another tip is to complete thorough research on the identified coin before buying it. Knowledge is power, and it significantly reduces your chances of being fooled while buying gold and silver coins.

If you’re wondering where to buy authentic gold and silver coins, Browse Our Coins at Wall Street Metals and enjoy great deals on our trusted precious metals.

Capital Gains 2

IRA Eligible Coins

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Wall Street Metals are experts in all things gold, silver, platinum, and palladium coins. We’ve got years of experience in the precious metals industry and have the connections to get you the best deals on your coins whether you’re investing or collecting.

But with great power comes great responsibility, and we get asked a bunch of questions on a regular basis by both our new and regular clients. One of the key queries we receive here at Wall Street Metals is relating to IRAs, and which coins are eligible for an IRA purchase.

So, we thought it would be a good idea to write a blog about the subject so you’re fully in the know when it comes to IRA eligible coins.

Let’s jump in with IRA eligible coins from the Royal Canadian Mint.

The Gold Maple Leaf Coin

The 1oz Gold Maple Leaf Coin is one of the most popular coins from the Royal Canadian Mint. It’s the primary piece in the series and debuted in 1979 as the second-ever gold bullion coin in the world. It contains 1 Troy oz of .999 pure gold in BU condition and is one of the many IRA eligible coins available at Wall Street Metals.

It also comes in a range of different options, with the ½ oz Canadian Gold Maple Leaf Coin also available to not only buy online, but coming in as one of our IRA eligible coins.

And of course, you can also purchase the ¼ oz Canadian Gold Maple Leaf with Wall Street Metals, and this is also one of the many IRA eligible coins we have in stock online.

Gold Bars for Your IRA

Moving away from IRA eligible coins and we have the 1 oz Credit Suisse Gold Bar available to buy online from Wall Street Metals.

Credit Suisse has a rich history in the precious metals industry and a world-famous reputation for quality. The 1 oz Credit Suisse Gold bar is true to form, and is available in brand-new condition with Wall Street Metals.

It is a brilliant, significant initial investment in gold and features the Credit Suisse logo engraved at the top of the bar alongside its weight, metal content, and purity. Not to mention the assayers mark and individual serial number which are included on the face. Each purchase of this piece also comes with an assay card to validate your gold bar.

And crucially, this particular gold bar is also eligible for your IRA.

The American Gold Eagle

Another one of our IRA eligible coins is the 1 oz American Gold Eagle Coin, which you can buy online today at our website. It’s one of the most popular and sought-after coins in America thanks to its glorious design and reputation in the industry.

It’s the largest gold coin ever produced by the US mint and is comprised of 91.67% gold and 22 karats. It does however still contain 1 troy oz of pure gold content because the coin itself actually weighs 1.0909 troy ounces in total. The 1 oz American Gold Eagle Coin features Augustus Sant-Gaudens iconic Lady Liberty image with an observe design unique to these coins.

It’s also eligible for your IRA, alongside the ½ oz American Gold Eagle Coin and the ¼ oz American Gold Eagle Coin. All three of these magnificent coins are available in brilliant uncirculated condition with Wall Street Metals, and each one of them is a fantastic addition to your investment portfolio or collection.

With them being IRA eligible coins, you can also reap the many tax benefits of buying precious metals through your IRA.

4-Coin Proof American Gold Eagle Set (Random year, Box + COA)

The American Gold Eagle coin is the official gold bullion of the United States, and one that’s been available since 1986. It’s struck annually by the US Mint, and the coins we have for sale in this series are available in bullion, proof, and burnished versions.

The 4 Coin Proof American Gold Eagle Set is sure to bring your portfolio or collection to life, and each box arrives in original US Mint box with a Certificate of Authenticity. It includes all four weights in the Proof American Gold Eagle Series, with designs featuring Lady Liberty from Augustus Saint-Gaudens and the family of bald eagles by Miley Busiek.

This is a truly unique and sought-after set and is available for you today with Wall Street Metals. It’s also part of our offerings which are fully IRA eligible, so don’t miss out on this fantastic opportunity and get yours today.

Book an IRA Appointment With Our IRA Experts

We proudly offer you, our customers, precious metals and coins for your IRA, and have partnered with New Direction IRA, Equity Trust, GoldStar Trust, Strata Trust and more to provide the lowest and quickest IRA setup and maintenance. Setup takes three simple steps, and we even have the option of speaking to an IRA advisors to help you buy your coins and reap the tax benefits.

Book your IRA appointment today with Wall Street Metals.

Download your free IRA brochure here, we also have a limited time opportunity to schedule in a call with our CEO. Avoid pitfalls and protect your wealth and future retirement. Get an inside look on how to invest in precious metals and have your questions answered.

Get in Touch With Wall Street Metals Today

If you’d more information on the IRA eligible coins we provide or any queries relating to the other precious metals on our website, or to be honest, anything at all, then do not hesitate to get in touch with the experts at Wall Street Metals.

Our reputation and buying power in the industry means that all of our coins are available as close to spot price as possible, and we even feature live spot checkers and historical data on all gold, silver, platinum, and palladium listed on our website. We also love speaking to customers.

Best of all? Wall Street Metals guarantees to beat any quote provided by a competitor at our website, yes you read that right, we guarantee to beat any written quote from a competitor.

So what are you waiting for? To get in touch, you can contact us via email at info@wallstreetmetals.com or give us a call on (877) 399-7222.

Capital Gains & Taxation On Precious Metals Income

Tax on Precious Metals Explained

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Wall Street Metals are experts in the precious metals industry. We’ve got thousands of happy clients over the years to prove it, and we offer the absolute best prices on gold, silver, platinum, and palladium available online.

We even offer to beat any written quote from a competitor, so we can say that we provide the best deal with absolute confidence.

And while there are profits to be made in the world of precious metals, there are also various tax implications you need to be aware of if you’re looking to invest. With this in mind, we’ve decided to put together this guide on everything you need to know about capital gains tax on precious metals, so you understand fully what you’re getting in to.

Capital Gains Tax on Precious Metals – The Basics

If you have holdings in gold to silver, platinum, or palladium, they are considered by the IRS to be collectibles. This means they have a cap of 28% when it comes to capital gains tax, which is in place to encourage long-term investment.

Of course, this does some with some caveats and rules.

For starters, it only applies once you actually sell your pieces. Capital gains tax on precious metals won’t be assessed until this happens, meaning that if you buy gold, for example, and it increases in value while you have it in a depository, the capital gain won’t be realized because it hasn’t been sold.

This means that the most vital element of working out how much capital gains tax you might be liable for is determining your cost basis, otherwise known as the original cost of the metals in question. You use the original cost you purchased your pieces for as a basis, and work out the capital gains tax based on the profit made when you sell.

Precious Metals as Inheritances and Gifts

While the above forms the basis of understanding when it comes to capital gains tax on precious metals, there are conditions that may be applicable to your personal situation that will influence how much capital gains tax you pay.

Lots of people receive gold or silver as part of an inheritance, for example, for which there is a different method used for calculating the original cost basis and therefore capital gains tax owed.

With inheritance, instead of working out the original cost basis of your coins from the date of purchase, you use the day the person passing them on to you passed away. This forms the basis of the amount you will owe once sold, and how much capital gain has been realized in the eyes of the IRS.

When it comes to tax on precious metals you receive as a gift, you might expect the cost basis to be calculated from the day you are presented with the precious metal, however, this is not the case. Instead, the market value of the original purchase date of the metals from the gift-giver is used.

At the end of the day, it’s as simple as understanding that if your precious metals are worth more than they were originally purchased for, you’re almost certainly going to have to pay a rate of 28% tax on the profits. Unless they were inherited, then it’s calculated from the death of the person who passed them down to you.

However, this isn’t always the case…

Short-Term, Mid-Term, and Long-Term Capital Gains Tax on Precious Metals

As we’ve mentioned, to encourage long-term investments, capital gains tax is capped at 28% for long term investments. This is the case if your tax bracket is between 33% and 39.6% and in a nutshell, even if your profits put you into a higher bracket, the tax on precious metals you will pay is capped at 28%.

But remember, qualifying for long term investment status means you have to hold on to your coins for a longer period of time (more than one year) between buying and selling.

When it comes to shorter time periods, short-term capital gains on precious metals apply. These are taxed at ordinary income rates, so if you’re within the 10-25% bracket, your gold, silver, platinum, and palladium assets will be taxed at the standard rate of tax, which is 10%, 15%, or 25%, depending on the total amount earned.

Capital Gains Tax on Precious Metals if You Lose Money

Precious metals are a stable investment that see increases in price over time as a general rule. But in the (very) unlikely event that you lose money when you sell your gold, silver, platinum, or palladium, then there is no capital gains tax to be paid.

That’s because you will actually have a capital loss on your hands, rather than capital gain.

While this isn’t exactly good news because you’ve lost out on money, you could actually use your capital loss to offset capital gains in that tax year, or even tax years down the line.

You can also offset this loss against your standard income, but there are a number of limitations and limits in place for this which you’d have to discuss with a tax professional.

Invest Today with Wall Street Metals

If you’re looking to invest in gold, silver, platinum, and palladium, then there’s no better place to do so than with Wall Street Metals. We provide answers to all questions you might have surrounding the best practices and nuggets of information, and have years of experience in the industry.

In these years we have accrued a sensational amount of knowledge as well as vital connections within the industry, enabling us to provide gold, silver, platinum, and palladium to our customers as close to spot price as possible.

And like we mentioned earlier, if you provide us with a written quote from a competitor, we guarantee to beat their price.

We provide a fantastic service bespoke to your requirements and pride ourselves on the high standard of customer service we provide to you. We also offer expert IRA advice, live spot price checkers and historical data on all pieces we stock, so you can make a truly informed decision on your investment.

For more information, give us a call on (877) 399-7222, or email info@wallstreetmetals.com and one of our friendly team will get back to you promptly to discuss your requirements.

Best Precious Metals

Best Precious Metals To Invest In 2021

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Best Precious Metals To Invest In 2022

In the world of investments, it can be tricky to know what’s worthy of your time and money and what isn’t. Do you go for something new and unpredictable like crypto, or something a little more tried and tested like energy, real estate, or precious metals?

Precious metals are a great investment for a few reasons, and in this blog, we’ll take a look at this reasons in detail. We’ll cover the difference between the various coins on the market, and which are the best precious metals to invest in 2022.

Let’s start with the difference between the forms of precious metals.

What’s the difference between bullion, proof, uncirculated, and circulating coins?

Coins are key to the precious metals industry. So, to fully understand precious metals, you must first understand the difference between bullion, proof, uncirculated, and circulating coins.

What Are Bullion Coins?

The term “bullion coins” covers precious metal coins that are intended solely for investment purposes. They are valued by the weight of the precious metal, which fluctuates based on its daily price, and they are not sold to the general public through the United States Mint.

Instead, these coins are sold through dealers located throughout the United States, dealers such as Wall Street Metals. Other coins are sold directly by the United States Mint for collectors to boost their collections, and to others as gifts and keepsakes.

What About Proof Coins?

Proof coins are the finest quality of coin produced by the United States Mint. The term “proof” refers to the coin’s finish and blanks are specially treated, hand-polished, and cleaned to ensure high-quality strikes on each and every piece.

The blanks are fed into presses fitted with specially polished dies and struck at least twice, and the coins are then carefully packaged to showcase and preserve their exceptional finish. Proof coins are struck at least twice, giving them a frosted, sculpted foreground for a beautiful shine that is defined and intricate with a mirror-like background. They also come with an official Certificate of Authenticity and are encased in a protective capsule.

Circulating and Uncirculated Coins

Circulating coins are produced for circulations and used in everyday life. However, those sold directly by the United States Mint are never released to the Federal Reserve Bank.

Circulating coins are generally provided by the Mint in rolls, bags, or boxes, which do not include Certificates of Authenticity as they are commonplace and used as currency.

Next up are uncirculated coins which are hand-loaded into the coining press and struck on specially burnished blanks. They have a soft, matte-like finish appearance and are made like circulating which are used every day as money, only with an additional special process to produce a brilliant finish.

Like proof coins, uncirculated coins come with an official Certificate of Authenticity.

So, with these differences covered, let’s discuss the best precious metals to invest in 2022.

Best Precious Metals To Invest – Gold

Gold is a fantastic commodity for a number of reasons, mostly because it is the most popular of the precious metals for investment purposes. It is easily recognizable and therefore easily traded, it has high value, and it is virtually unaffected by changes in the stock market.

Gold has been used for years as an investment tool as well as for collections,  and is the absolute top dog in the precious metals investment industry. There are many beautifully designed gold coins that are a fantastic addition to your investment portfolio available with Wall Street Metals which you can buy safely and securely online today.

Take a look at our gold collection and take advantage of our promise to beat any written quote from a competitor.

Best Precious Metals To Invest – Silver

Silver is next up in terms of popularity and ease of trade when it comes to precious metals, which has been the case for as long as gold and silver have existed.

Another easy to identify set of coins, silver has a long reputation as second in command to gold in terms of price and popularity. It has similar benefits to gold in that it is rarely affected by the stock market and other unpredictable elements of investing in general, which makes it a brilliant investment opportunity and one of the most profitable tangible assets you can invest in today.

At Wall Street Metals, we provide a range of silver coins available to buy today. Take a look at our silver collection and buy online with confidence.

Best Precious Metals To Invest – Platinum and Palladium

And finally, platinum and palladium. These are relative newcomers in the precious metals industry and are finding their footing in terms of popularity. They are much rarer than gold and silver which means that while they aren’t as easily recognized, they have more value attached to them as a result.

They’re also absolutely stunning and are a worthwhile addition to any collection or investment portfolio on this basis alone. However, money and value is always a welcomed addition!

Platinum products are available at Wall Street Metals to buy today, as are palladium coins.

Get in Touch and Invest in Precious Metals Today

If you’re interested in buying or investing in any precious metals today, be it gold, silver, platinum, or palladium, then don’t hesitate to get in touch with Wall Street Metals.

We’re experts in the industry and have years of experience. We’re very passionate about the coins and precious metals we provide online, and we pass our highly coveted knowledge on to our customers. Our coins are available as close to spot price as you’re likely to find them anywhere and we even feature live spot checkers and historical data on all gold, silver, platinum, and palladium listed with ourselves.

Our customer service is second to none and we love helping our customers. We even guarantee to beat any quote provided by a competitor at our website, so take a look today.

And if you have any questions relating to any of the precious metals that we have listed for sale at Wall Street Metals, please get in touch with us. To do so, you can contact us via email at info@wallstreetmetals.com or give us a call (877) 399-7222.

How to buy gold

How to Buy Gold Successfully

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Introduction to buying gold

Whether you are looking for a long-term investment or just want something tangible that you can sell quickly in the event of another economic crisis, investing in gold is thought by many to be a proven method for ensuring economic security.

This guide will answer the five most common questions about buying gold:

  • Why should you buy gold?
  • What type of gold should you invest in?
  • What do you do when you’re ready to buy gold?
  • How can you avoid getting scammed?
  • What outside factors influence the price of gold?

Question 1: Why should I buy gold?

Gold for investment vs. gold for insurance
There are two main reasons people buy gold: as insurance and as an investment. People who are concerned about the recent economic crisis tend to view their ownership of precious metals as an insurance investment. As long as you have physical gold or silver to sell or trade, you will never be broke, even if the economy collapses. As a nationally recognized gold expert, long-time investor and author of “Stack Silver Get Gold: How to Buy Gold and Silver Bullion Without Getting Ripped Off!” Hunter Riley III told me, one of the main things gold bullion has going for it is that it’s a tangible asset you maintain control of, no matter what happens to the global economy.

While bullion is a relatively safe way to buy gold, many investors prefer to invest in precious metals to make a large profit. Mining stocks are a popular form of investment and can be lucrative. Instead of just owning a piece of gold, stockholders own a share of the process of mining gold by investing in companies that own mines. Investing in mining stocks is riskier than buying physical gold bullions or coins, but the payoffs can be greater, including a dividend that you won’t get when you buy a piece of gold. As Don Durrett, long-time investor and author of the book How to Invest in Gold and Silver, told me during our interview, “Mining stocks are potentially the investment of a lifetime opportunity because of the cash flow.”

Most common types of gold to buy
The most common ways for investors to purchase gold are:

  • Mining stocks: A high-risk, potentially high-profit investment that I will explore in more depth later.
  • Gold bullion: Available from Wall Street Metals, bullion can be bought as coins or bars.
  • Gold jewellery: In general, jewellery is not a lucrative form of investment. Retailers add up to a 400 per cent markup on gold jewellery, making it unlikely that you will be able to recoup your investment or make money on top of it later. It is possible to find valuable gold jewellery at estate sales or antique shows that don’t have the added markup, but this is time-consuming and only works if you really know what to look for. Because of all these factors, I did not investigate the ins and outs of buying gold jewellery as an investment for this guide.

Question 2: Buying gold bullion vs. mining stocks. Which is better for me?

Gold bullion
Bullion is sold in the form of bars or coins. The two easiest types of coins to buy and sell are the Canadian Maple Leaf and the American Eagle gold coins. The 22 karats Canadian Maple Leaf sells best in countries outside of the U.S., while the 24 karats American Eagle gold coin sells best within the U.S., The U.S. mint also offers the 24 karat American Buffalo gold coin through reputable dealers like Wall Street Metals, which costs more upfront and is less popular than the American Eagle.

While it might seem like buying common mints of coins would yield a lower return than buying less common mints, the payoff comes when you are able to easily sell one of these more popular mints of coins when you need the cash. It is relatively easy to buy gold bullion, and once you have purchased it you don’t really need to do anything but store it.

In fact, even though he prefers investing in mining stocks, Durrett recommends that people begin investing in gold bullion before jumping into stocks: “I always tell people to buy some physical gold or silver coins – buy them and stick them in a safety deposit box and see how it feels.” If owning gold makes you feel more secure, it’s time to start thinking about investing in mining stocks.

Even though it is relatively easy to find and buy gold bullion from companies like Wall Street Metals, there are some risks to consider and research before jumping into your purchase. Here are six things to think about before you buy any type of physical gold:

  1. Storage:Where will you store your precious metals? Bank safety deposit boxes are an option, but many precious metals investors don’t trust banks. You might prefer purchasing a home safe for your gold, which will add additional overall cost to your investment.
  2. Insurance: Home insurance won’t cover the loss/theft of your gold, which also may affect where/how you store your bullion.
  3. Taxation issues: In his book How to Buy and Sell Gold and Silver Privately, Internet marketer and business coach Doyle Shuler explains many of the complexities surrounding taxation and buying gold. Some states apply sales tax for gold, and others do not. Buying from an online dealer like Wall Street Metals might be a way for you to bypass your state’s taxation law.
  4. Scams: Do not buy Gold at 20%- 40% above the spot price you will never recoup your investment, instead deal with companies like Wall Street Metals who not only guarantee to beat any price for Gold coins and Bars in the U.S. but sell moderatly above spot price.
  5. Reporting: Many gold buyers are critical of the U.S. government and therefore do not want their gold purchase to be noted to the IRS. According to Shuler, simply paying cash isn’t enough to keep you off the grid. By law, precious metals dealers are required to report purchase amounts over $10,000 cash to the IRS. However, they are only reporting the amount of money that was spent per transaction, not what was bought or who bought it. Shuler recommends paying with a bank wire or check if you are purchasing more than $10,000 worth of gold in cash since banks do not report to the IRS.
  6. When to buy: You will need to follow the price of gold for some time before deciding that it is the right time to invest. You don’t want to buy at the peaks, so you will need to understand what factors affect the price of gold.

Durrett emphasizes the risks involved with investing in mining stocks saying, “You can never think that mining stocks are a non-risky investment.” He explains that anything can go wrong, like political events, geological events, flooding events, currency situations or new taxation rules. “You never know what you can get blindsided by.”

Because of the risk involved with mining stocks, Durrett recommends that new investors start small: Investors “really want to start out using money they can afford to lose until they get an understanding” of how mining stocks work and what causes their prices to rise and fall. “It takes at least one year to get a little bit of comfort level that they get an understanding of what they’re doing. There’s a lot of unknowns,” but “over time you can understand what makes a mining company strong.”

Durrett advises gold bullion buyers to buy and sell from online companies like Wall Street Metals, explaining that local retailers can’t compete with online stores and so charge customers more money.

Mining stocks
While many people prefer to have a tangible asset such as gold bullion, bars and/or jewelry, investing in mining stocks can be a more lucrative investment opportunity that will lead to greater wealth. In his book Durrett states, “if you only want to maintain your wealth, then bullion is the place to be invested.” Durrett opted to invest in mining stocks, “since my focus has been on increasing my wealth and not just protecting it.”

While it may be lucrative, investing in mining stocks isn’t for everyone. During our interview, Durrett described successful investors of mining stocks as “contrarian” and “speculative.” He further noted that a successful investor will pay attention not only to their particular mining stock(s) daily but also to gold generally and external factors such as oil prices, geological events and natural disasters that can affect the price of gold.

Question 3: I’m ready to buy gold. What do I do next?

Know when to buy gold
As with all investments, the general rule of “buy low, sell high” applies to gold, whether in coin, bullion or stock form. To know the right time to buy, you need to do some research and keep your eye on the market. If you’re going with stocks, you will want to pay attention to the market for a few months before deciding that the timing is right.

Understand how gold is priced
The price of gold is constantly fluctuating, and the current price of gold is called its spot price. This reflects the most recent average bid price according to global professional traders. Several things can influence the spot price on any given day including war, the central bank, supply and demand and the size of the average transaction. When you buy gold, you will buy at a percentage (generally five to eight per cent) above the spot price, and you will sell for below the spot price. Some dealers maintain that gold coins are worth more than just the metal contained inside of them, which is how they can justify charging a premium of 20% – 40% when you buy. There’s really no getting around this, so be cautious of any dealer who claims they aren’t charging a premium.

Find the right gold dealer
Take some time to research reputable gold dealers to find a good price on gold coins. In general, avoid buying gold online through bidding sites as you can end up in a bidding war and end up paying more for a gold coin than it is even worth. Here are five things to consider when you’re looking for a gold dealer:

  1. Price: Shop around dealer websites to make sure you are paying a fair price for gold. Check exchange sites to find out what the spot price is for gold. You should expect to pay a five to eight percent premium above the spot price for a gold coin.
  2. Dealer buyback policies: Before buying from a gold dealer, investigate their buyback policies. Some dealers will charge a premium for you to sell back your gold, while others will not add any additional charge. Get the buyback policy in writing, and keep it in a safe place for the future.
  3. Reputation: Buying anything online poses risks, so be sure to do some thorough research before deciding on a dealer. The U.S. Mint’s listing of gold dealers is a good place to start. While these dealers are not affiliated with the U.S. Mint, the Mint has done some checking to make sure the dealers they advertise are represented by the Better Business Bureau. Reading consumer reviews is one of the best ways to tell if you are working with a reputable dealer or a scam artist.
  4. Red flags: While buying gold is generally a sound investment strategy, there are some red flags to consider when you’re shopping around for a dealer. Dealers that offer free storage or delayed delivery might not be legitimate, and you may never end up seeing the gold that you paid for. Store your gold in your own safe or safety deposit box to reduce your likelihood of getting taken advantage of.
  5. Key sellers to stay away from. There are certain places and people to always avoid when buying gold including Craigslist, online dealers offering massive discounts, pawnshops, TV ads, cold callers and any dealer without a brick and mortar location since there is no way of verifying that the dealer actually exists. Don’t give in to the pressure of late night telemarketers insisting you call them immediately for a limited time discounted rate on gold. Take your time to find a reputable dealer.

Question 4: What common mistakes can I avoid when buying gold?

Buying proof coins
Avoid buying proof coins if you are using gold as an investment. Proof coins are commemorative coins that usually come in a special case and are finely polished to look more attractive than normal coins. While these coins have a higher value for collectors, their monetary value is not guaranteed to stick around in the long-term, making them a poor choice for investors.

Buying fractional coins
Coins are available in a variety of fractions including a half-ounce, quarter-ounce, even a twentieth-ounce. You are better off buying a full ounce because the fractional amounts are charged at a higher premium.

Investing in exploration mining stocks
Durrett emphasizes that investing in exploration mining stocks is “Very very risky because it’s so difficult to find a mine. Only one in about 500 deposits that they drill actually become a mine.” And while the odds might seem to be in favor of a big payout if the exploration company actually finds a mine, “shareholders who invest in successful exploration mines don’t end up making that much.” Instead, the exploration company will sell it to somebody else. A company can find a billion-dollar mine, but they won’t necessarily sell it for that amount. Whatever they sell it for has to be split among all the shareholders. Because of the risk involved for minimal gain, it is best to avoid exploration mining stocks, especially when you are first starting out.

Question 5: What outside factors can influence the price of my gold investment?

Oil prices
According to Durrett, companies focused in Mexico and South America have low price structures but high energy costs, which can affect the bottom line.

Season
James Fraser and Kevin Pederson, authors of the book “The Mining Stocks Investor Guide” (Miningstocksguide.com), recommend that investors stick to “the old saying ‘sell in May and go away’ as the summer months set in and prices tend to flatline.” By September, volumes pick up and continue to rise to go into October and November. December can vary and depends heavily on the gains investors have earned throughout the year.

Country of origin
According to Fraser and Pederson, “First, you want to determine which region of the world the project is in and avoid regions of the world where there is political and social unrest, dubious law enforcement, confiscatory royalty mindsets, nationalization ‘rumors’ and high taxation.”

Management
Fraser and Pederson advise investors to “Always remember the number one goal of any management team should be to maximize shareholder value.” In addition, Durrett advises investors to pay attention to the websites of management companies and to consider it a red flag if a management company doesn’t send out newsletters and update their website with market trends and news.

Bottom line

Durrett anticipates the price of gold to rise to $2500/ounce by the end of this decade, meaning now is a great time to buy gold. Whether you are buying gold as an insurance policy or as an investment, make sure to do your research and take your time learning the ropes of buying and selling gold.

For further info please contact Wall Street Metals at (877) 399-7222 or email them at info@wallstreetmetals.com.

Capital Gains 2

GOLD Myths v Facts

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Misconception #1 – “Gold has a poor return”

Critics argue that gold doesn’t pay dividends and point out that you won’t get rich from buying gold, but this argument misses the point. Buying gold isn’t a get-rich-quick scheme, but a vehicle for wealth preservation. That said, let’s look at historical performance. Since 2002, gold has increased in value of roughly 300%, a period during which the Dow increased by less than 200%. Stocks and bonds have a comparative edge over a 30 year period, but gold still increased more than 170% over that time. And since gold ownership became legal in 1975, the yellow metal has increased more than 500%! Gold may be better suited for wealth preservation than wealth generation, but would you consider those poor returns?

Misconception #2 – “Now isn’t a good time to buy gold”

As we discussed, the primary purpose of gold ownership is to protect your money, not to try and “time” its purchase with the expectation of a huge return. Buying gold isn’t like betting on the next Google stock. Instead, it’s a time-tested way to preserve your money’s value, diversify your holdings, and help safeguard your savings.

Misconception #3 – “Storing gold is complicated and costly”

Storing gold is no different than storing anything else of value – you want to strike a balance between accessibility and safety. Some of the most straightforward options are to keep your gold in a fire-proof safe at home or rent a safety deposit box at a bank. For those concerned about space, consider that even tens of thousands of dollars in gold can fit in the palm of your hand.

Misconception #4 – “Gold won’t hold its value because new gold is mined every year” & Misconception #5 – “There isn’t enough gold to support global commerce”

Let’s talk about these two together, because they’re opposites and yet both are commonly held misconceptions. Is there too much gold, or not enough gold? Neither tells the full story.

First of all, gold is scarce, very scarce, and recent trends suggest that isn’t changing anytime soon. In November 2017, Fortune reported on a revelation made by Pierre Lassonde, co-founder and chairman of mining royalty company Franco-Nevada. Lassonde told a German newspaper he was unsure how the world would be able to keep up the pace of discovery of gold deposits, and warned that a gold supply-demand imbalance could lead to a worldwide price increase. Also in 2017, China, the world’s largest gold producer, suffered a record drop in gold production, while output plateaued elsewhere.

On the other hand, some argue that there isn’t enough gold in the world for it to be used as a viable alternative to government-backed currency, limiting its utility. However, among experts, there are highly vocal detractors of this theory. One of the most influential is N.Y. Times Bestselling Author Jim Rickards. For his piece in Business Insider, titled “Gold Is The Only Option For When Paper Currencies Die,” Rickards calls that argument “complete nonsense,” and defends that the scarcity issue is addressed simply by pricing gold at a figure which reflects that scarcity (a figure which Rickards argues is $10,000/oz).

Misconception #6 – “There’s nothing more reliable than the U.S. dollar”

If only this were true, but let’s look at the facts.

According to the ICE index, which measures the dollar against a basket of six other currencies, in 2017 the dollar’s value fell 10%. That was its worst year in more than a decade, and—despite a partial recovery in recent months—plenty of economists are still sceptical. According to Quartz, “UBS and Lombard Odier expect the euro to keep gaining against the dollar, while strategists at French Bank Société Générale see the dollar falling another 10%.”

The other challenge that the dollar faces is the rising cost of living. According to USA Today, the price of food and groceries is outpacing the inflation rate. Ground beef, for instance, costs 52% more while prescription drugs cost 43% more than 10 years ago. With the prices of necessities skyrocketing, the dollar’s loss of purchasing power can pose serious financial strain.

Misconception #7 – “All this talk of volatility is an overreaction”

It’s easy to get lulled into a false sense of security: Despite tremendous unrest, recent geopolitical tensions haven’t boiled over. No bull market lasts forever, but the current one has already exceeded a record-breaking 3,459 days. And banks have, so far, fared ok against cyberattacks, even as those same banks quietly plan for a “Doomsday” scenario, as reported by the Wall Street Journal (paywall). But what if even one of those scenarios takes a turn for the worse? Consider how gold might fare then. As a physical asset, not a digital one, it can’t be erased by a keystroke. As an internationally recognized asset, its value isn’t tied to the fate of anyone government. So ask yourself: would you rather be a wishful-thinker, or be prepared?

Don’t miss an opportunity because of misinformation. Take control of your future finances by learning the facts and considering what role gold should play in your portfolio. For more information and valuable insights, please call (877) 399-7222 or email your questions to info@wallstreetmetals.com.

New Federal Legislation of America’s Gold Reserves

New Federal Legislation Requires Full Audit of America’s Gold Reserves

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Washington, DC  – U.S. Representative Alex Mooney (R-WV) introduced legislation this week to provide for the first audit of United States gold reserves since the Eisenhower Administration.

The Gold Reserve Transparency Act (H.R. 2559) – backed by the Sound Money Defense League and government accountability advocates – directs the Comptroller of the United States to conduct a “full assay, inventory, and audit of all gold reserves, including any gold in ‘deep storage,’ of the United States at the place or places where such reserves are kept.”

HR 2559 requires more than just a physical assay, inventory, and audit, however. Even if all United States gold can be physically accounted for, it may nevertheless be encumbered with third-party obligations – or otherwise, be impaired by bank financialization.

Therefore, Mooney’s gold audit bill also requires “a full accounting of any and all sales, purchases, disbursements, or receipts… a full accounting of any and all encumbrances, including those due to lease, swap, or similar transactions presently in existence or entered into [in the past 15 years, and] an analysis of the sufficiency of the measures taken to ensure the physical security of such reserves.”

Over the years, the U.S. Treasury has faced allegations that it has sold, swapped, leased or otherwise placed encumbrances upon some of America’s gold reserves.

At the same time, Russia and China are accumulating physical gold at a rate that experts believe could ultimately threaten the financial dominance of the United States and, by extension, national security.

Rep. Mooney’s gold audit bill seeks to restore confidence in the stewardship of America’s gold, a vital and strategic financial asset that does not carry the counterparty risks of un-backed national currencies.

“The U.S. Treasury has neglected to give the American people an understanding and inventory of our nation’s gold holdings,” said Rep. Mooney. “After 65 years since the last audit, this legislation would lead to necessary transparency in accounting for our gold reserves.”

Private gold holdings in precious metals depositories are routinely audited, yet the U.S. Treasury has not permitted an audit, assay, and inventory (independent or otherwise) of America’s gold reserves since 1953.

In fact, HR 2559 provides for the first true and full audit ever, because the audit during the Eisenhower Administration was never actually completed. HR 2559 also requires a new audit every 5 years thereafter.

“Given the strategic and monetary importance of gold, there should be no doubt about its status and security,” said Jp Cortez, policy director at the Sound Money Defense League.

“The U.S. Treasury should be held, at a minimum, to the standards of private depositories and public companies when it comes to financial governance.”

The bill directs the Government Accountability Office to provide the results of the audit to Congress as well as make them available to the public without redactions. The text of H.R. 2559 can be found here.

Capital Gains & Taxation On Precious Metals Income

Capital Gains & Taxation On Precious Metals Income

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One of the more common questions when it comes to investing in precious metals is whether or not one has to pay taxes when selling their bullion at a profit. Here we will outline some of the general policies on precious metals taxation.

Holdings in precious metals such as gold, silver or platinum are considered to be capital assets, and therefore capital gains may apply. When it comes to tax purposes, the IRS classifies precious metals as collectables, and thus they may potentially be taxed at the maximum collectable capital gains rate of 28 percent.

It is important to note, however, that these capital gain taxes will not be assessed until one sells the metal. For example, if someone bought 50 ounces of gold at $1,000 per ounce, and gold is currently valued at $1,300 per ounce but he or she still owns the metal and it is held in a depository, then the capital gain has not yet been realized.

How Do I Know If I Owe Tax on the Sale of My Metals?

The first step in trying to determine whether or not a tax liability exists is to determine your COST BASIS or original cost of the metals. Using the example above, the cost basis would be $1,000 per ounce X 50 ounces which equals $50,000. Now, if an investor elected to sell those metals which they purchased for $50,000 at current gold price levels, then he or she would see a gain of $300 per ounce X 50 ounces. This would equate to a total gain of $15,000.

Some other special conditions may apply. For example:

Receiving Metals as an Inheritance:

Metals that are received as part of an inheritance use a different method for calculating the basis. In this case, the basis of the metals is equal to the market value of the metals on the date of the death of the person that left the metals to you.

Receiving Metals as a Gift:

If you receive metals as a gift, then the basis is calculated using the market value of the metals on the date they were originally purchased by the person gifting them to you. If the market value is less than what the person gifting the metals paid, then the basis is calculated based on the fair market value at the time the gift of metals is given.

The bottom line is this: If you sell precious metals for more than what you paid for them, chances are pretty good that tax liability will exist.

Potential Tax Rates on Precious Metals Sales:

Due to the way that precious metals are classified by the IRS, a higher capital gains rate may apply. The maximum capital gains rate charged on collectables is 28 percent. This does not necessarily mean that someone will have to pay 28 percent, however. The actual rate that someone pays is determined by the amount of time the precious metals were held and the payer’s ordinary income tax rate. The investor must also determine if the capital gain is short-term or long-term based on how long they held the precious metals. Short-term capital gains are taxed differently from long-term capital gains.

Do I Pay Taxes on Precious Metals As Soon As I Sell Them?

No. Capital gains from the sale of precious metals would be reported on your annual tax filing with all applicable information. Payment of the tax would also take place on an annual basis.

What If I Lose Money on My Precious Metals?

If one buys precious metals and ends up selling them at a loss, then no capital gain exists. In fact, the investor would now have a capital loss. This capital loss may potentially offset other capital gains within the same tax year or in future tax years. In addition, a capital loss may potentially be used to offset ordinary income with certain limitations and limits. These are issues that should be discussed with one’s CPA or tax professional.

Taxes are an important consideration for all investors. This simple guide outlines some of the potential tax implications of selling precious metals. This is not tax advice, and we are not tax advisers. Always consult your CPA or tax professional for any tax-related matters. Although we believe the data in this guide is reliable, we make no guarantee as to its accuracy.

For collectors and investors, Gold/Silver/Platinum coins are “capital assets” (see Internal Revenue Code Section 1221); therefore, any gain or loss upon their sale is treated as a capital gain or loss. Such gains or losses are reported on Schedule D of the individual’s Form 1040 tax return

Tax Implications of Selling Physical Gold or Silver

Physical holdings in precious metals such as gold, silver, platinum, palladium and titanium are considered by the Internal Revenue Service (IRS) to be capital assets specifically classified as collectables. Holdings in these metals, regardless of their forms—such as bullion coins, bullion bars, rare coinage or ingots—are subject to capital gains/loss tax. The capital gains/loss tax is only owed after the sale of such holdings and if the holdings were held for more than one year. While many tradable financial securities, such as stocks, mutual funds and ETFs, are subject to short-term or long-term capital gains tax rates, the sale of physical precious metals is taxed slightly differently. Physical holdings in gold or silver are subject to a capital gains/loss tax equal to your marginal tax rate, up to a maximum of 28%. That means individuals in the 33%, 35% and 39.6% tax brackets only have to pay/offset 28% on their physical precious metals sales.

All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of Wall Street Metals. and should not be construed as financial advice.

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Joe Pannu here.  My team and I have decades of experience in the Precious Metals market.  It is our passion.

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