Selling To Coin Stores

[Dawg]

I have a local coin store that has been a source of buying and selling over the last few years, and they usually paid me in cash when selling. They have tried to pay by check a few times, because they did not have cash on hand. They will generally pay cash, if they have had cash sales that day. They have never officially had a policy to buy with cash though.

Recently they have been more difficult to get cash out of, and I think it has something to do with them buying scrap gold and silver, and having a lot of money at the refiners waiting to be paid.

My question is this.... Would you be willing to accept a check for payment of gold and silver? Are there any draw backs to accepting a check? Any reporting needed? My gold is all in Eagle fractionals.

As an adjunct, this dealer always pays a good premium over spot for Eagles.

Thanks in advance.

[Skirnir]

The dealer is obligated to report suspicious activity, but it really depends upon the size of the cheque. Get near $10K and reporting comes into play.

[MNeagle]

No way. Getting FRNs is enough risk.

Maybe ask him if you call ahead, can he get the necessary cash ready for your arrival?

[Book]

I have a local coin store that has been a source of buying and selling over the last few years, and they usually paid me in cash when selling.



My guy always pays in cash. I phone before going and mention what I want to sell "for cash" and only once he said "wait until after lunch" so he could go to the bank.

:D

[willie pete]

A few times I've been in a couple different coin shops, and for large or fairly large payments, I've always seen the dealer pay out by check or a combination of the two, one instance a girl came in with her grandaddy's collection, he'd just died, she had an assortment, gold Eagles, Gold Liberties...etc dealer paid out over $9k, part in cash, maybe $2-3k, the rest in check, I know this dealer too, he's Loaded, this coins shop of his is just something to park money in, but he doesn't keep a lot of cash on site, I wouldn't either, to easy for someone to come in and put a gun in your face

[milehi]

Cutting a check is the norm at the shop I frequent, but I almost never sell. When I do, like roughly two months ago when I sold a bunch of silver for $19.53oz, I asked for in store credit.

[cedarchopper]

The dealer is obligated to report suspicious activity, but it really depends upon the size of the cheque. Get near $10K and reporting comes into play.


I believe you have this wrong...the 10k reporting requirement is for CASH. Checks don't have reporting requirements in any amount, 5 million or 50 thousand. The only other reporting requirement that comes into play concerning gold is the 25 ozs or more of certain 1 oz coins, which does not include AGE's in any amount.

[SLV^GLD]

The idea to call ahead alerting the dealer to have cash onhand is supreme. If questioned, state that you don't keep a bank account which seems reasonable for a goldbug.

[Skirnir]

No way. Getting FRNs is enough risk.

Maybe ask him if you call ahead, can he get the necessary cash ready for your arrival?


I did not think of that; it's worth a go if the dealer is willing.

[gunDriller]

The dealer is obligated to report suspicious activity, but it really depends upon the size of the cheque. Get near $10K and reporting comes into play.


I believe you have this wrong...the 10k reporting requirement is for CASH. Checks don't have reporting requirements in any amount, 5 million or 50 thousand. The only other reporting requirement that comes into play concerning gold is the 25 ozs or more of certain 1 oz coins, which does not include AGE's in any amount.


i think you're both right.

there are certain financial transactions that are automatically reported.

bank employees also have the discretion, i.e. it's up to their judgment, to file a SAR (Suspicious activity report) anytime they want, regardless of transaction size.

i suppose a coin dealer could do the same.

[Dawg]

The coin store in question has been in business in my town for over 35 years. I relented and went and sold a half ounce Gold Eagle and two quarter ouncers. I got spot plus 5% on the quarters, and 3% on the Half. There are cash places in the area that pay 3% under spot.
I took a check, and I also got a pretty good education on the cash or check scenario. The IRS was at the store shortly before I arrived, because they were looking for records on an individual that they are investigating for tax evasion/fraud, so they were a little gun shy about folks asking for cash today. They also said that money laundering has been an issue with local law enforcement in recent weeks, so they are not doing any cash transactions.

The $10,000 limit is for the year. By right, we are obligated to report transactions totaling $10,000 in a year. And now they even passed a new law that was in the health care bill that stipulates that coin dealers will be obligated to issue 1099's for transactions exceeding $600, and this will kick in in 2012.

So, all you gold lovers that voted for the big O, I hope this is ok with you. ;D

What was it he said during his campaign?? "No one that makes less than $250,000 a year will have to pay more taxes" Yeah, Right!

[cedarchopper]

The dealer is obligated to report suspicious activity, but it really depends upon the size of the cheque. Get near $10K and reporting comes into play.


I believe you have this wrong...the 10k reporting requirement is for CASH. Checks don't have reporting requirements in any amount, 5 million or 50 thousand. The only other reporting requirement that comes into play concerning gold is the 25 ozs or more of certain 1 oz coins, which does not include AGE's in any amount.


i think you're both right.

there are certain financial transactions that are automatically reported.

bank employees also have the discretion, i.e. it's up to their judgment, to file a SAR (Suspicious activity report) anytime they want, regardless of transaction size.

i suppose a coin dealer could do the same.


Checks provide an easy to follow paper trail and are not suspicious. "Suspicious activity' involves CASH...you can take that to the bank :]