Frequently Asked Questions on Gold Investing
Why should I own gold as a long-term investment?
The advantages of investing in gold are portfolio balance, liquidity, privacy, tax advantages, and most importantly, protection against currency disruption including inflation, devaluation or recall.
Is it a good idea to include precious metal investments in my portfolio as a means of diversity?
Gold and silver bullion bars and coins along with investment quality rare coins dated prior to 1933 have consistently proven themselves to be an ideal strategy for the long-term.
Where should I store my precious metal coins or bars?
Storing precious metal is most secure in a bank safe deposit box. Large investments (over $1 million) should be storied in a licensed and insured depository.
Can the government impound my gold and silver coins?
The Federal Government retains the power to take possession of gold and silver bullion coins according to U.S. Code, Title 12, Chapter 2, Subchapter IV, Section 95a, which says, in part,: “During the time of war, the president may through any agency that he may designate, licenses, or otherwise–(A) investigate, regulate, or prohibit, any transactions in foreign exchange, transfers of credit or payments between, by, through, or to any banking institution, and the importing, exporting, hoarding, melting, or earning of gold or silver coin or bullion, currency or securities.” But, investment quality U.S. gold and silver coins dated prior to 1933 are exempt from this Title 12. Therefore, they remain a top notch investment.
Which is the best strategy—to invest in physical gold, gold stocks, funds or ETF’s?
Paper substitutes, such as currency or certificates, for physical gold are temporary and that has been consistently demonstrated through over 1,000 years of history. Physical gold is the world’s most esteemed long-term asset and store of value. The huge recent purchases of physical gold by India, Russia and China reinforce this enduring truth.
If I own $10,000 worth of gold coins, how quickly can I sell them if I need cash?
We make buy and sell investment coins and bullion coins and bars on a daily basis. It starts with a five-minute phone call with you. We give you overnight FedEx shipping instructions. This enables you to send us your gold coins insured but at no cost to you. After we receive your coins the next day, your payment can be sent to you via overnight express, bank wire or the U.S. postal service, depending on how quickly you need the check.
What is your commission on a $10,000 gold maple leaf or gold eagle investment?
We preserve a buy/sell price with a 2%* round-trip spread for popular 1 oz gold bullion coins. For example, if gold is selling at $1,000 per ounce, we will buy a one-ounce gold coin like the Canadian Maple Leaf at $1,030.00 and are sell it at $1,050.00. This way investors pay less and receive more with our minimal buy-sell spreads.
Smaller, less popular bullion items such as uncirculated French and Swiss 20 francs (minted prior to 1933) have a 5% round-trip spread. So, if gold was at $1,000 per ounce, we would pay $200.00 for an ounce and sell it at $210.00.
*Unlike our competitors, we do not charge additional fees along with our 2-5% round-trip spread. Therefore, because of this very narrow buy-sell spread, we require a minimum purchase of $10,000. We do not accept credit cards for these transactions. Due to their weight and value, we add a small charge for guaranteed delivery.
What is the best short-term investment? Gold or silver?
Currently we recommend gold assets due to the global currency crisis, excess fiat money creation by the Federal Reserve, and the overwhelmingly huge U.S. Budget deficits. If hyperinflation should occur…or seem highly probable…we would recommend silver assets.
What is the best choice of coins to leave to my heirs?
For ensuring long-term family wealth, the best numismatic assets are certified investment quality, pre-1933 U.S. gold $20 coins with Liberty and Saint-Gaudens designs imprinted on them.
When looking at other investment items such as real estate, stocks, artwork, etc., what are the tax advantages to leaving rare coins to my heirs?
As part of a formal inheritance, gold coins are allowed by current law to have a “step-up in basis.” This means the inheritance value of the coins will be based on their value on the date of inheritance, regardless of their initial cost. This tremendous advantage can potentially eliminate any capital gains tax.
Will it be relatively simple for family members to liquidate any coins they inherit?
National Coin Broker is a major gold market maker. Therefore we provide a daily buy/sell price with immediate payment. Your family members can quickly liquidate a numismatic holding through us.
Can physical gold and silver be deposited into an Individual Retirement Account?
IRAs exist that enable the investor to purchase gold, silver, platinum and palladium bullion coins and bars.
Can I withdraw money from my 401k or IRA and deposit it into a precious metal IRA?
You are able to transfer funds out of existing retirement accounts and open a precious metal IRA with those funds. It is recommended that you consider a contribution of $50,000 minimum when opening a precious metal IRA since storage fees may be involved.
What are the tax advantages to purchasing gold, silver, platinum and palladium compared to traditional stocks for a retirement account?
No taxes are due or payable upon acquiring a minimum of $1,500 worth of gold. Unlike mutual funds or ETFs, you do not receive a yearly 1099B tax form. Also, numerous gold investment coins are exempt from 1099B reporting at the point of sale.
What types of coins are allowed to be deposited into an IRA?
American Eagle coin or gold, silver, platinum and palladium bullion bars are acceptable for an IRA. The company that administers that IRA retirement account may only permit selected coins or bullion bars.