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Silverhawk

Gold Silver Ratio - Executing the Trade

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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.

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Posted (edited)

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 by sovereignsteve

Happy to receive feedback on all my trades. If anyone wants feedback from me, just say the word.

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Posted (edited)

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 by Silverhawk

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