Buying 1/4 Ounce & Lower Frac's in Anticipation of New Tax Law

[gunDriller]

I was thinking about the new tax law that was inserted into Obama-care, which mandates the filing of 1099's for all (or almost all ?) transactions $600 and above.

Although it would be great if there were some tax attorneys in our midst to read the Obama-care bill & explain it to us, I'm tending to believe these guys - the article is somewhere in General Discussion.

It seems like it makes sense to adjust one's buying habits to purchase more gold fracs.

For example, the .2354 ounce British Sovereign & the South African equivalent -
http://www.apmex.com/Product/17/Great_Britain_Gold_Sovereigns___Almost_Uncirculate d_or_Better.aspx

http://www.apmex.com/Product/12157/South_Africa_2_Rand_Gold_Coins_AU_BU.aspx

Since their current price is about $300, gold would have to more than double to make the sale taxable in the US ... if the article in General Discussion is correct.

How do you guys feel about this ? What are the arguments pro & con fractional Gold Maples & Gold Eagles, vs. the Sovereign & 2 Rand coins ?

[Rebel Yarr]

I think fractionals are well worth it if you expect the price of gold to keep rising - even just a double from here.

The average person can't buy/make change for a full one ounce these days - and if it goes to 2k it will be even farther from the average joe. For this reason I have been picking up 1/10 and 1/4 ounces since gold hitting 1k.

The potential of transactions over $600 to be reported/taxed is an added incentive.

I make sure that I am getting them at a good though. Paying a huge premium on an ounce in fractionals can outweigh the tax benefit - if that is your only concern.

[DualCarbon]

I think I'm also going to start buying fractionals.
Had not considered possible lowering of the tax reporting amount.
How about the Mexican small coins, about $100 over spot per ounce?
These 2 peso ones are about 1/20 of an ounce, any love for them?

http://www.gainesvillecoins.com/products/154664/MexicanGold2Peso.aspx

[Quixote2]

Another reason for silver instead of gold.

[1970 Silver Art]

You could always buy 1/10 fractional gold coins and still be in good shape whenever spot gold doubles in price in terms of being under the $600 reporting threashold, however, the big drawback is the larger premium that you will pay on a 1/10 oz fractional gold coin as opposed to a 1/4 gold coin and that could play a major role in how much you will make on it if you decide to sell it at a later date. Generally speaking, the smaller the coin, the higher the premium.

As for the gold eagles and gold maple leafs, those two coins will , generally speaking, will have the highest premium on them. The 2 Rand and the Sovereign gold coins might have a lower premium but you might have to shop around to find that lower premium.

I think that buying fractionals is always a good idea anyway especially for people who do not have enough FRNs to buy a full 1-oz gold coin at a time. As I mentioned earlier, the drawback will be the premium that you will pay for them but if you can buy fractional gold coins locally at a coin dealer or at a coin show, then you might be able to pay a "lower-than-normal" premium on certain fractional gold coins.

[chad]

not to say i told you so, but i saw this coming a few years ago.

this is why i have a box of 1 gram pamp bars ;D