Reddit's silver "apes" now targeting silver, opportunity or fool's gold?

[QuarterMillionMan]

New Global Reserve Currency - SPECIAL EPISODE - Robert Kiyosaki, Andy Schectman - YouTube

[QuarterMillionMan]

I just bought a 1 kilo silver bar for $832 plus sales tax of about $75. I don't recall ever paying sales taxes on precious metals. A quick web search shows each state's sales tax and my state CA has a 7.5% tax under $1500. It is too late on this purchase since I already made the purchase but now I know to buy over $1500 to avoid the sales tax.

• Alabama: No sales tax on bullion
• Alaska: No sales tax at a state level
• Arizona: No sales tax on bullion
• Arkansas: 6.5% on all precious metal sales
• California: 7.5% on transactions below $1,500
• Colorado: No sales tax on most precious metals
• Connecticut: 6% on purchase values below $1,000
• Delaware: No sales tax
• Florida: 6% on values below $500, with an exemption for legal tender
• Georgia: No sales tax
• Hawaii: 4% general excise tax paid by the seller, often added to the purchase price
• Idaho: No sales tax
• Illinois: 6.25% on South African Krugerrands only, all other bullion is exempt
• Indiana: No tax on high-purity bullion, 7% on other types of precious metal
• Iowa: No sales tax
• Kansas: No sales tax
• Kentucky: 6% on all orders
• Louisiana: No tax on precious metals
• Maine: 5% flat rate
• Maryland: 6% on order values below $1,000
• Massachusetts: 6.25% on transactions below $1,000
• Michigan: No sales tax on high-purity bullion
• Minnesota: 6.88%
• Mississippi: 7%
• Missouri: No sales tax on high-purity bullion
• Montana: No sales tax
• Nebraska: No sales tax
• Nevada: 6.85% with some exemptions
• New Hampshire: No sales tax
• New Jersey: 7%
• New Mexico: 5% paid by the seller
• New York: 4% on transactions below $1,000
• North Carolina: No sales tax
• North Dakota: 5%, but with high-purity bullion exempt
• Ohio: Basic sales tax of 5.75% applies to silver and gold bezels, high-purity bullion is exempt
• Oklahoma: No sales tax on precious metals
• Oregon: No sales tax on any precious metals purchase
• Pennsylvania: 6% on silver and gold coins which are not legal tender, bullion is exempt
• Rhode Island: 7% tax applies only to bullion that’s not been refined or smelted
• South Carolina: Most precious metals are exempt, but some coins and processed items attract 6%
• South Dakota: No sales tax on investment-grade bullion or legal tender
• Tennessee: No sales tax on gold or silver bullion
• Texas: No sales tax on gold or silver bullion
• Utah: A 4.75% tax applies to bullion with purity below 50%
• Vermont: 6% on all precious metal transactions
• Virginia: 5.3% levied on all precious metals with no exemptions
• Washington: No tax on any non-collectible precious metals
• West Virginia: Investment-grade bullion and coins are tax-exempt
• Wisconsin: A 5% tax on all precious metal purchases
• Wyoming: A basic 4% rate on all precious metal purchases

[james.hendrickson]

QMM - wow a kilo of silver sounds quite nice.

Did you get one of the better brands? My understanding is brands like Englehard sometimes have a bit of a premium in the market if you want to sell your silver. People think they're less likely to be fake or adulterated.

[QuarterMillionMan]

James I just go by price (but I stick with well-known name brands) and different websites can vary greatly in price take for example the 2 websites where Bullion Exchanges is $830 vs Money Metals is $890.

[QuarterMillionMan]

This article explains why stocks & bonds have no sales tax but precious metals have sales tax. And it explains that imposing a sales tax on precious metals may discourage prudent investing.

Sales Tax on Gold and Silver - Rules For Every State (noblegoldinvestments.com)

[QuarterMillionMan]

Gold & silver bugs are seeing some nice gains as people are flocking into precious metals as a flight to safety.

[disneysteve]

Gold & silver bugs are seeing some nice gains as people are flocking into precious metals as a flight to safety.

I will never understand that line of thinking. My "flight to safety" is buying up CDs paying 5+% interest. Guaranteed return. Fully insured principal.

Can anyone guarantee that gold and silver will earn at least 5% over the next couple of years? I don't think so.

[QuarterMillionMan]

I buy precious metals more as an insurance measure should the BRICS & OPEC somehow make USD no longer the world reserve currency. I hope we can keep the status as the world reserve currency but in the unlikely event that it topples, hence the insurance.

[disneysteve]

I buy precious metals more as an insurance measure should the BRICS & OPEC somehow make USD no longer the world reserve currency. I hope we can keep the status as the world reserve currency but in the unlikely event that it topples, hence the insurance.

If the US goes down, we'll have far bigger things to worry about than whether or not our money is in gold or stocks or CDs.

I'm not a conspiracy theorist or a doomsdayer so I don't worry about stuff like this. I've heard the same reasons given for owning gold my entire life. It wasn't true 50 years ago; it isn't true today. There's a reason why precious metals are taxed as collectibles and not as investments. I've got no issue with someone owning them. You do you. It's just not for me.

[QuarterMillionMan]

My first kilo (for comparison Chapsticks & a folded in half paper 8.5" x 11"). Nice and heavy. I should put it in an old sock and use it as a door stop and no one would even know, lol.

[QuarterMillionMan]

Can you spot the fake silver? The top 5 silver American eagles are the fakes. As for the gold pickers the 3 vials contains 3 grams each of natural gold pickers. The bottom right picture is 1 grain gold pieces which = .065 grams. So let's say 20 grains x .065 = 1.3 grams.

[james.hendrickson]

Can you chemically test the silver?

[QuarterMillionMan]

Yes I should buy the liquid that turns color for real silver (I think yellow as opposed to red). Also, a strong magnet can be used at a 45 degree angle and the silver should slide down but has to be a good strong magnet which I should get as well.

[disneysteve]

Can you spot the fake silver? The top 5 silver American eagles are the fakes.

Can't really tell anything in the picture but at least you caught it and got a refund.

Still, I'd take them somewhere and have them checked (or get a home test kit).

[QuarterMillionMan]

Here is a 5x camera zoom close up (hard to see the markings) of the 1 grain gold (not 1 gram). For comparison a 1 gram gold bullion on APMEX is $100. So a 1 grain gold bullion is about $5 each x 20 grains = $100. Remember 1 grain = .065 gram. And 31 grams = 1 troy ounce. As you can see the mark up on a 1 gram gold bullion at APMEX is outrageous $100 for a 1 gram bullion x 31 grams = $3100 an ounce. The spot price of gold today is $1975. The last pic is 5 grams of natural gold pickers, size 6 mesh for comparison to these extra small pieces of gold. Each of these small gold pickers are about 1/2 gram each.