Financial Advisor Richard Jordan Discusses What You Should Know Before You Buy Gold
Financial Advisor Richard Jordan recently explained what every retiree should know about buying gold before purchasing it.
Plano, TX – March 11, 2013 – Richard Jordan, Founder of Fortress Estate Solutions, recently discussed the difference between reportable and non-reportable gold investment and why the distinction is important. Mr. Jordan explains:
There are tax consequences to getting this wrong and there are other government issues to consider. The key discussion should be: What is a reportable vs. a non-reportable commodity purchase? Gold & Silver Bullion of any size is a REPORTABLE commodity. So, if you are fearful of the economy, or a possible future demise of the dollar, this money is “on the radar.”
In 1933, the U.S. dollar was convertible to gold, rendering the government incapable of printing more money, as it is apt to do today. With fiscal discipline enforced by this convertibility, our faithful politicians (even back then) did the next best thing — they promptly confiscated American citizens’ gold, via executive order 6102 (signed by Franklin Delano Roosevelt), while remunerating them for the then-fair market value of $20.67 an ounce. Upon the successful completion of its gold confiscation, the U.S. government adopted the Gold Reserve Act in January 1934, which revalued the nominal price of gold from $20.67 to $35.00 per troy ounce. What a risk-free profitable trade for the federal reserve!
Mr. Jordan continued by providing an anecdote explaining why it’s important to ask whether a purchase is reportable or non-reportable:
Let’s say you have a seller who sells you a 32.15 oz Johnson Gold Kilo Bar for $56,100 today and does NOT report it as required. Five years later gold hits $5,000 an ounce (awesome for you !), BUT that dealer is gone. With more governmental enforcement, all buyers of gold will report (because they will face this same tax nightmare on their purchase if they don’t) and they enter you into the system with a $160,750 sale. What’s your capital gain?
Since you “worked” the system and stayed off the radar by getting a seller to not report; your basis is $0.00 Now when you sell you are taxed on a $160,750 gain – this is NOT subject to debate – this is fact and it is easily researched – you’ll pay 20% (or, the then current capital gain tax rate), plus the additional taxes due if your income is over $250,000. Buying reportable commodities sets you up for tax scrutiny (FYI, I am not suggesting you buy non-reportable metals to avoid taxes – you are subject to gains and losses, but, the record keeping is your responsibility).
In addition, as you can see from above, the government tracks reportable commodities and the last go around proved that the seller (the American public) got a lousy deal. Does it make sense to buy gold coins? Please don’t hesitate to contact me to help you understand your best options!
For more information on how Richard Jordan can help, please visit http://fortressestatesolutions.com/ or call (888) 682-5952.
About Richard Jordan:
Richard Jordan is the Founder of Fortress Estate Solutions, pllc and has been in the financial field for more than 20 years. Right out of college, Jordan started working with ITT’s corporate group, which included Hartford Insurance. In just five years, he rose quickly in positions within the company from district to regional management and then into a 21 State Area Director.
Three years ago, Jordan started to share his views on financial planning on the radio. He started at a local station in Dallas and after tripling the audience for the show in six months time, he started doing a show for CBS radio in Dallas for KRLD 1080 in 2012.
Fortress is one of only 4 percent in the United States that is a pure fiduciary investment advisor firm. The remaining 96% of registered investment advisors work for or are broker dealers who collect commissions on investment products they recommend, which creates a conflict of interest for their clients. Fortress is strictly a fee-based fiduciary advisor firm and it can only make higher fees when their client’s investments make more money.