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3 hours ago, bernorange said:

Also, it's possible for the gold/silver ratio to decline while both gold and silver continue going up (silver just goes up faster).  i wouldn't be shorting gold right now unless you had insider info from someone at the Fed.

Yes, I'm aware. It doesn't matter what causes the ratio to decline if you have an equal position in silver and a gold short - that's the point of the hedge. You will make your money back on your silver position if that's what is causing the ratio to decline.

I mean if I was playing the gold market I may or may not short it right now, but I also wouldn't buy a bunch of silver so it's a moot point. I was addressing someone that already owns a lot of silver. 

Thanks for the info on different ways people enter gold positions. I think what I was trying to recall is that many people are moving away from purchasing it physically because an index /ETF is much easier.

Edited by ztejas

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3 hours ago, bernorange said:

You will likely only have difficulty if you are trying to buy UTIMCO sized quantities. 

I would love for this to be a problem that I had.  

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I've been messing with it for less than a decade. Maybe there were shortages of physical metal before that, but the only shortage I've seen was during the shut-down, when silver dropped to 12 (real price to buy it was 20), then it reappeared when spot went back up to 17-18 (real price to buy still 20.)

Small shops will often have bottlenecks, usually it's not a drought so much as a selection based on what some dude sold them a couple days ago.

Internet is a mixed bag. eBay bidders drive prices up a fair amount over what it's worth, plus they'll tack on tax even if your state doesn't tax precious metals. I used to like Apmex, but they've got stoopid prices now. I keep coming back to Provident Metals.

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When the shit hits the fan and China detonates an EMP device or the NORKS, India, and Pakistan decide to start lobbing nukes around those ETFs, futures contracts, and shares in a vault aren't going to be worth anything  Physical metal stashed in your gun safe on the other hand might be..

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4 minutes ago, NeverMarryAStripper said:

When the shit hits the fan and China detonates an EMP device or the NORKS, India, and Pakistan decide to start lobbing nukes around those ETFs, futures contracts, and shares in a vault aren't going to be worth anything  Physical metal stashed in your gun safe on the other hand might be..

Boxes of ammo will do very well as a barter medium.

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21 minutes ago, NeverMarryAStripper said:

Physical metal stashed in your gun safe on the other hand might be..

Only if people decide it's worth something. Which, historically we have always decided of gold. 

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On 7/30/2020 at 7:54 PM, leaf said:

I bought 100 1 oz. silver rounds at the end on March for about $17.00 each.  I don't pay much attention to the market.  For those of you that do, do you think that silver will continue to go up?

Yes, silver will continue to move higher.  It's going to $50 an ounce....for starters.

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on one hand im kinda tempted to sell some of the metals ive got.  they were bought some year sback from provident, have now appreciated, and its basically non-reportable on taxes (?)

 

on the other hand, its simply nice to have around.  which is the real reason i bought them in the first...to fondle, not to profit

 

 

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2 minutes ago, 52-80 said:

on one hand im kinda tempted to sell some of the metals ive got.  they were bought some year sback from provident, have now appreciated, and its basically non-reportable on taxes (?)

 

on the other hand, its simply nice to have around.  which is the real reason i bought them in the first...to fondle, not to profit

What do you mean by “it’s basically non-reportable on taxes”?

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3 minutes ago, XYZ said:

What do you mean by “it’s basically non-reportable on taxes”?

IRS dont know when i bought it.  and if i sell to a dealer, pretty sure theyre not going to report that transaction (with my name) to the authorities either

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I believe a transaction over $10,000 is reportable to the IRS.  The first time I ordered gold from APMEX they sent a copy of what they reported to the IRS.  I have made sure to keep my future purchases under that amount since then.

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18 hours ago, Rusty Shackelford said:

I believe a transaction over $10,000 is reportable to the IRS.  The first time I ordered gold from APMEX they sent a copy of what they reported to the IRS.  I have made sure to keep my future purchases under that amount since then.

Send me your address so I can check that you safe is properly installed.

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If gold pops the way some outlandish predictions expect, it's going to be hard to sell an ounce or two without a Form 8300 reporting requirement.  Smaller sized units carry larger premiums, but might be worth it down the road...

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12 minutes ago, bernorange said:

If gold pops the way some outlandish predictions expect, it's going to be hard to sell an ounce or two without a Form 8300 reporting requirement.  Smaller sized units carry larger premiums, but might be worth it down the road...

Good point, but how would they know your "cost basis" for the gold you sold, if you didn't have to report it when it was bought? 

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1 minute ago, Rusty Shackelford said:

Good point, but how would they know your "cost basis" for the gold you sold, if you didn't have to report it when it was bought? 

honor system, bro

 

i bought some from foreign mints, and also received as gifts... value = 0.01$

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As I understand it (I'm not a tax expert), you can claim a best estimate (with some documentation to make the estimate reasonable).  For example, averaging the price points across a range of time over which it was likely that the item(s) were bought.

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28 minutes ago, Rusty Shackelford said:

Good point, but how would they know your "cost basis" for the gold you sold, if you didn't have to report it when it was bought? 

They don’t *know* anything but what is reported to them. In this case it would be a number on a form filled in by you as part of your tax return. The problem is if they decide to audit you, then they will want proof

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1 hour ago, Rusty Shackelford said:

Wouldn't you would want to claim a higher cost basis, to report it as a loss?

whoops.  i meant $five brillion dollars

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1 hour ago, Rusty Shackelford said:

Good point, but how would they know your "cost basis" for the gold you sold, if you didn't have to report it when it was bought? 

I mean, how did you buy it?

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I think most peeps here know that I am a "gold bug".  I read a lot about gold.  There are lots of crazy predictions about where gold may be headed and I don't really give them much attention.  But this morning I ran across an article (from a well known gold advocate) that drew some conclusions based upon trading data from the COMEX and LBMA that is more extreme than the $15K gold price predictions I have been seeing.  It's a tl;dr bit, and not really the kind of thing you can just quote little snippets from.  Details and context are important, so for those interested:

https://www.goldmoney.com/research/goldmoney-insights/gold-at-2k-so-why-the-fuss

My best effort to summarize is this:  Bullion banks hold record short positions in COMEX and hedge with long positions on the LBMA.  Physical gold trading is endangering the LBMA long positions (as in - there is insufficient physical gold to deliver against them) so banks will be hung out to dry on their COMEX short positions (LBMA hedge positions are vapor).  It could set up the mother of all short squeezes.

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My best effort to summarize is this:  Bullion banks hold record short positions in COMEX and hedge with long positions on the LBMA.  Physical gold trading is endangering the LBMA long positions (as in - there is insufficient physical gold to deliver against them) so banks will be hung out to dry on their COMEX short positions (LBMA hedge positions are vapor).  It could set up the mother of all short squeezes.

Gee, thanks for summarizing this. I still didn’t understand much. I know bullion. I’ve got both chicken and beef.

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