Wealth Advisor Bryon Spicer Discusses What You Should Know Before You Buy Gold
Dayton, OH – March 4, 2013 – Bryon Spicer, Founder of Seniors Financial and Spicer Wealth Management, recently discussed the difference between reportable and non-reportable gold investment and why the distinction is important. Mr. Spicer 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. Spicer 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 shady 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). 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 this topic, or to learn how Bryon Spicer can help, please visit http://www.SpicerWealth.com
About Bryon Spicer:
Founder of Seniors Financial and Spicer Wealth Management, Bryon Spicer, has devoted more than three decades of his life to educating and assisting retirees and pre-retirees.
An accounting major at Wright State University, Spicer has held several designations, including Certified Insurance Counselor. He has co-authored a book titled “Issues of Aging”, and most recently reached the status of best-selling author with the publishing of his latest book titled “Don’t Get Sacked in Retirement” a quarterback’s playbook for winning the game.
Spicer is a sought after speaker. He regularly conducts public seminars on many advanced financial topics to the general public and special interest groups. Recognition from the media and the investment community has followed his firm because of consistent success.
Spicer’s firm has been recognized three years in a row by Cincinnati Magazine as one of the top wealth advisors in the area. In addition, Ohio State University respected Spicer so much that the prestigious establishment of higher learning brought him in as a guest lecturer to infuse future financial minds with relevant information. Spicer is also an approved member of the National Ethics Bureau, which shows the highest regards for integrity and ethical decision-making.
Spicer completed a 30-minute TV shoot with Patti Gribow that discusses the book “Don’t Get Sacked in Retirement” and the Consumers Guide to Finding the Right Advise Giver.
Investment Advisory Services offered through Spicer Wealth Management, an Ohio Registered Investment Adviser. Securities offered through GF Investment Services, LLC, Member FINRA/SIPC. Insurance services offered through Seniors Financial Services.
The information in this release is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.