Gold Silver Ratio - Executing the Trade

[Silverhawk]

When the ratio falls to near 50 I want to trade my silver for gold. But I have a few questions on executing the trade.

1) Where? Where do I take/send my silver to trade for gold? The big bullion companies will only purchase, not trade, and only wire transfer into my bank account which leads to my second question.

2) My accountant says I need to pay capital gains taxes since it's a sale. Also he says that a long held silver sale is based on the cost of silver at the time of purchase.  Example: In 1987 silver averaged $7 per oz. so I would be taxed on (if I sell @ $24.50 price today) a $17.50 capital gain on each oz!  So according to my accountant I would be taxed about 30% of $17.50 per oz!  And that's if I sell today. If I wait until silver hits $50 to sell I'm really screwed. So this seems ridiculous and mostly negates the reason for the trade.

Appreciate any discussion on this. Interested in others plans and ideas concerning ratio trading.

[sovereignsteve]

Won't be a problem if they're brits.

Otherwise you have a capital gains allowance of approx £12k per tax year before you pay any tax, if that's any help.

It depends if you will have any other capital gains to declare for tax purposes as well as your silver gains.

If you sell either side of the April 6 tax year cut-off, you can make gains of £24k, that's a lot of silver profit but it really all depends on the specifics of your own circumstances.

I don't think trading for gold, if you could do so, would help as I believe disposing of your silver in whatever way will count as a taxable point.

Edited August 1, 2020 by sovereignsteve

[Silverhawk]

Thank you. I am in USA and I surpass the allowance every year. 

I have been reading for years about the silver/gold ratio and how people trade back and forth when the ratio allows but I never gave much thought to the execution of the plan. After looking into it a bit I really don't see how this can be done without getting thoroughly reamed, and makes me question the "experts" that have been talking about trading the ratio.

 

Edited August 1, 2020 by Silverhawk

[Silverhawk]

According to APMEX FAQ section, Silver Eagles and Silver Rounds are not taxable when you sell.

The IRS has specific rules related to reportable transactions that require a Form 1099-B to be filed and those rules are included in the Form 1099-B instructions on the IRS website. The following are guidelines provided by ICTA related to Precious Metal sales, and these guidelines, as well as the IRS rules, are subject to change at any time without notice.

Reportable Item	Minimum Fineness	Minimum Reportable Amount
Gold Bars	0.995	Any size bars totaling 1 Kilo (32.15 troy oz) or more
Silver Bars	0.999	Any size bars totaling 1000 troy oz or more
Platinum Bars	0.995	Any size bars totaling 25 troy oz or more
Palladium Bars	0.9995	Any size bars totaling 100 troy oz or more
Gold 1 oz Krugerrand	as minted	Twenty-five (25) 1 oz coins
Gold 1 oz Maple Leaf	as minted	Twenty-five (25) 1 oz coins
Gold 1 oz Mexican Onza	as minted	Twenty-five (25) 1 oz coins
U.S. 90% Silver Coins	as minted	Any combination of dimes, quarters, or half-dollars totaling $1,000 face value or more