I Need Silver Advice

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Johnny Oxygen's picture
Johnny Oxygen
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I Need Silver Advice

I'm going to take a huge plunge and invest many tens of thousands of dollars into 1 ounce silver bullion. But I need some advice. I'll most likely buy from Kitco but I understand that if you buy over a certain amount then it has to be reported to the government. What I want to do is buy as much as possible with the least amount of people/organizations knowing about it. Kitco's site states:

Any amounts exceeding $10,000.00 can only be paid by bank wire.

I really want to avoid a paper trail of any kind if that is possible. So How do I do this without screwing it up? What are the rules, pitfalls and dangers?

Tycer's picture
Tycer
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Re: I Need Silver Advice

I like the paper trail. It insures that I'll get that pretty metal in my hot little hands.

What I do with that metal is my business. The trail stops when the postman hands it to me.

When I've gotten shipments, there's nothing on the packaging to suggest the contents.

I also got some 5 and 10 oz bullion.

Ready's picture
Ready
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Re: I Need Silver Advice

The only true way to not have a paper trail is to buy in quantities below $3K via cash from a (presumably) local source. I would certainly want to make sure I chose my source wisely since a no-paper trail cash deal is one where the badguys might like to take advantage.

If Silver is the purchase, I am a little confused why the paper trail is a bad thing. I understand with gold how there is a history of confisaction and some folks think it could happen again, but I am not aware of the same with silver.

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bklement
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Re: I Need Silver Advice

There are only IRS reporting requirements on silver for 1,000 bars or if you use a cashier's check or money order.  (if that is the kind of paper trail you are talking about)

Side Note:  I personally use www.bulliondirect.com  I have been doing business with them for over 2 years and well into the 6 figures and have never had a problem.  They are usually the cheapest and have no minumum order amount (right now they are almost a $1 and ounce cheaper on Silver American Eagles than Kitco).  I'm not affiliated with them at all but I reccommend at least checking them out.  They are based out of Texas which has no sales tax on precious metals if you buy over $1,000 worth at a time.

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codeblue
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Re: I Need Silver Advice

I recommend buying government issued one ounce rounds like the Eagles, Maples, or Philharmonics, etc.  They do demand a little more premium; but if you ever needed to dump them (or trade them) in a worst case scenario, then they seem like they would be a bit easier to unload and more easily accepted.  And if the price of silver goes through the roof (which is what I'm leaning towards), then the extra premium is a mute issue.

Ready's picture
Ready
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Re: I Need Silver Advice
bklement wrote:

There are only IRS reporting requirements on silver for 1,000 bars or if you use a cashier's check or money order.  (if that is the kind of paper trail you are talking about)

My personal experience is contrary to this statement. YMMV, as dealers may not all behave the same way in terms of reporting.

bklement's picture
bklement
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Re: I Need Silver Advice

Whoops, forgot junk silver (a 1099B is required when selling over $10,000 face value in pre 65 coins as well).

Those are the required reportable transactions.  A dealer can report more than that if they want but are not required (at least that's the way I understand it).

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kcol
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Re: I Need Silver Advice

I have bought from a local source and AMPEX.  AMPEX cheaper, less hassle and good service.  I've got silver rounds, Silver Eagles and 90% bags.  I'm not real concerned silver will be confiscated.  junk coins (64 and before) are great for bartering, I've got dimes, quarters and halves.  I don't want a lot of large bars that are harder to get rid of.  Storage is the only issue for silver.  gold for a store of wealth, silver for day to day.

ao's picture
ao
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Re: I Need Silver Advice

I've bought locally and from different dealers.  I like APMEX's pricing transparency and their prices are good but I actually bought silver on a cost averaging basis slightly cheaper locally, with no shipping charges, no waiting time, and no paper trail and I made a new friend to boot and have developed more connections as to local precious metals activity.  Shop around.

I wouldn't buy tens of thousands of dollars of silver all at one time but that's just me.  Also, just because silver hasn't been "confiscated" in this country in the past doesn't mean it can't be nationalized in the future.  And if silver is stored in a safe deposit box, there's a very good chance it could nationalized along with anything else of tangible value in the event of a "national emergency" as per the Patriot Act.  I don't think it's likely though that there will be outright silver nationalization or gold nationalization for that matter.

The more likely scenario as that gold and silver will be taxed more heavily.  I wouldn't be surprised if windfall profits taxes were imposed on profits from both gold and silver.  In fact, Lee Bellinger alluded to such a possible action when he stated that Republicans recently narrowly beat down a Democratic measure to "punish" gold and silver holders. 

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robie robinson
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Re: I Need Silver Advice

We, some very few likeminded folk, sell our farm commodities(for myself its only a small percentage)within a very small community thats spread throughout VA,for "P"eas and "M"elons to each other. We use spot plus nothing. find a sympathetic farmer(fulltime farmer)

 

robie 

robie robinson's picture
robie robinson
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Re: I Need Silver Advice

We, some very few likeminded folk, sell our farm commodities(for myself its only a small percentage)within a very small community thats spread throughout VA,for "P"eas and "M"elons to each other. We use spot plus nothing. find a sympathetic farmer(fulltime farmer)

 

robie 

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poisonivy113
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Re: I Need Silver Advice
ao wrote:

 

The more likely scenario as that gold and silver will be taxed more heavily.  I wouldn't be surprised if windfall profits taxes were imposed on profits from both gold and silver.  In fact, Lee Bellinger alluded to such a possible action when he stated that Republicans recently narrowly beat down a Democratic measure to "punish" gold and silver holders. 

 

Really? can you provide more details or a reference for exactly what happened? 

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kcol
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Re: I Need Silver Advice

taxing gold, silver or for that matter whatever they want is likely with a liberal administration and congress.  They could never overturn the 2nd amendment but they can tax guns and ammo to where the average person can't afford them.  Silver would work well in a barter system, but not if government is functioning to the point of taxing every sale.  I don't know if in the end having PM will make a difference but I feel more secure than having paper.

ao's picture
ao
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Re: I Need Silver Advice
kcol wrote:

taxing gold, silver or for that matter whatever they want is likely with a liberal administration and congress.  They could never overturn the 2nd amendment but they can tax guns and ammo to where the average person can't afford them.  Silver would work well in a barter system, but not if government is functioning to the point of taxing every sale.  I don't know if in the end having PM will make a difference but I feel more secure than having paper.

I think you're right about the guns and ammo.  I think that's a highly probable strategy.  Levy an annual tax on guns and ammo that's high enough to discourage gun ownership, especially ownership of multiple guns and of ammunition hoarding.  But start out with a small tax and gradually increase it, to meet growing administrative costs, of course <sarcasm>.

The 2nd Amendment can definitely be chipped away.  Back in the 1980s, a law was passed in NJ banning "assault weapon" ownership.  Assault weapons were defined as any long gun with a larger than 5 round magazine.  This meant hundreds of thousands,if not millions, of firearms were made illegal.  You had a set period of time to turn your firearm in.  Otherwise, you would be guilty of a felony.  Guess what?  Only a few hundred firearms were turned in.  Hundred of thousands or more of firearm owners refused to comply.  The state wound up looking silly and impotent and eventually rescinded the law.  It was a definite victory for firearm owners but this strategy can be used in many different ways.  Ban certain "cop killer" calibers, certain types of ammunition, certain magazine sizes, certain barrel lengths, etc., etc.  Pretty soon, all you're left with is a pop gun.   

I think PM ownership will make a difference.  It's just that like anything else in this world, there's no absolute security and everything has its risks.  The transitioning out of PMs could be tricky. 

ao's picture
ao
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Re: I Need Silver Advice
poisonivy113 wrote:
ao wrote:

 

The more likely scenario as that gold and silver will be taxed more heavily.  I wouldn't be surprised if windfall profits taxes were imposed on profits from both gold and silver.  In fact, Lee Bellinger alluded to such a possible action when he stated that Republicans recently narrowly beat down a Democratic measure to "punish" gold and silver holders. 

 

Really? can you provide more details or a reference for exactly what happened? 

Sorry but I don't at this time.  I've been trying to find out more.

kcol's picture
kcol
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Re: I Need Silver Advice

The biggest asset that Freedom has is our ability to communicate.  If the internet was restricted our monitored we'd be in big trouble.  I've always been a big 2nd amendment supporter though I've never been a hunter.  I'm buying multiple weapons and am going to stockpile ammo, because the price will only go up and ammo will be great barter in a worsta case scenario.  Another ? I have is character of the American people.  I know there are alot of people that will fight for freedom and the constitution, but how are all the people who have been taken care of by the government handle things when they are left to their own devices?  Sorry if off topic

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Mr. Fri
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Re: I Need Silver Advice
bklement wrote:

I personally use www.bulliondirect.com  I have been doing business with them for over 2 years and well into the 6 figures and have never had a problem.

I live close enough to drive to Bullion Direct in less than an hour.  However, they don't sell "direct" to people at their store.  Everyone has to order by mail. Too bad, I was hoping that I might have a good local source of PMs.

Morpheus's picture
Morpheus
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Re: I Need Silver Advice
Johnny Oxygen wrote:

I'm going to take a huge plunge and invest many tens of thousands of dollars into 1 ounce silver bullion. But I need some advice. I'll most likely buy from Kitco but I understand that if you buy over a certain amount then it has to be reported to the government. What I want to do is buy as much as possible with the least amount of people/organizations knowing about it. Kitco's site states:

Any amounts exceeding $10,000.00 can only be paid by bank wire.

I really want to avoid a paper trail of any kind if that is possible. So How do I do this without screwing it up? What are the rules, pitfalls and dangers?

I'd avoid Kitco. Too many reported issues. 

Second, I'd buy American Eagles first, and Canadian Maple Leafs second, then  Johnson and Mathesey or Englehard bars. In that order. 

Eagles are US currency, fetch a premium, and are likely to be suspended again during the next leg up. Plus with Eagles, there are reporting advantages. Leafs can be transported in limited qty's across the border without having to pay duties. 

Third. This is my favorite place to buy online. 

www.apmex.com

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npwebb
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Re: I Need Silver Advice
Mr. Fri wrote:
bklement wrote:

I personally use www.bulliondirect.com  I have been doing business with them for over 2 years and well into the 6 figures and have never had a problem.

I live close enough to drive to Bullion Direct in less than an hour.  However, they don't sell "direct" to people at their store.  Everyone has to order by mail. Too bad, I was hoping that I might have a good local source of PMs.

 

I've been doing business with BD since the beginning of 09'.

I haven't had a single issue.

kcol's picture
kcol
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Re: I Need Silver Advice

Morpheus

do you think the premiums are worth eagles, Englehard over APMEX rounds?  you have any junk silver if so, what's your split between rounds and junk?

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scotthw
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Re: I Need Silver Advice

Ditto on good experience with APMEX.

locky man's picture
locky man
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Silver Advice...

Hiii.......

You can get help from below link...

http://www.angloirishgold.com/silver/silver-investment-advice.html

thank you,

 

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