The IRS treats this trade as a sale of the silver at the current market price. Suppose a restaurant wants to be paid in silver and you agree to buy a steak dinner with an Eagle. Thus gold and silver are best suited to long-term preservation of wealth: hoarding. The only way to avoid this tax is by not selling. The government takes 28 percent of this difference, or about $400. If the dollar loses half its value, then the gold price will double, say from $1,400 to $2,800.
The government treats this as a “gain” and upon sale of the metal, levies a tax on it. As the dollar falls, the prices of the metals rise. The Fed debases the dollar, but of course not gold and silver. There are a number of reasons, but let’s focus on one: the capital gains tax. More importantly, even if the server takes the silver, you have simply moved one ounce to the server.This ounce will be hoarded, and not spent. When the silver price rises rapidly, the idea becomes less practical. At a restaurant, you might explain to a server that silver is real money and offer a choice of a tip paid on the credit card slip vs. However, they don’t circulate, even within the gold and silver community.įor example, suppose you wanted to kick-start circulation. This is why people buy gold and silver coins. While there are many opinions about the specific consequences, there is a growing realization that it won’t end well. We must explain why they don’t use one to buy a steak dinner.Ī growing number of people recognize that the Fed, under Chairmen Greenspan and Bernanke, has been abusing the dollar beyond all precedent, if not all reason. So the question is not why people don’t use a silver coin to buy a soda. When precious metal coins are bought and sold, everyone understands that the price is based on the current market value of the metal. The legal tender value is just a nominal value arbitrarily set by law. Still, this doesn’t really solve the mystery. Obviously, no one would use $23 worth of silver to buy a can of Diet Coke from a vending machine. The one-ounce silver Eagle has a legal tender value of $1 (silver is currently over $23/ounce) and the gold Eagle is a $50 coin (the gold price is almost $1,400). One problem is that these coins are stamped with a face value far below the value of the metal content. This is a serious mystery that requires some thought to solve.
When more come in stock, you will automatically be emailed, and the products can be purchased on a first come first serve basis.Gold and silver coins do not circulate. If you are interested in a product that is not currently in stock, then add your email address to be notified when they are available again. We buy and sell tens of thousands of ounces of silver bullion every week, and the products in the cheapest silver bullion section will usualy sell very quickly. Also contained in this lot are our extra inventory rounds that we mint. It is possible that the rounds in this lot will have some scratches, dings, and or tarnishing, but the silver content is guaranteed. It is the cheapest silver bullion because the silver may have been circulated or have minor dings and scratches.
These products might include silver rounds, bars, old silver coins, and other items. Because we buy and sell silver on a daily basis, we come accross deals on discount silver that we pass onto the customer. This category features some of the cheapest silver bullion products we have for sale.