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Sunday, January 16, 2011

Buy Gold and Silver In Gram and Ounce Sizes

One of the nasty consequences of Obamacare was that in an effort to capture virtually every transaction in this country and tax it, they slipped that little section of the law in there that requires a 1099 anytime a business owner conducts a transaction in excess of 600 bucks.

I read a blog today that mentioned that reporting requirement that occurs in 2012. He mistakenly believed that everyone would have to sell in 2011 or be subject to tax. That blog piece is here:

I have been buying gold in varying sizes. Try to buy gold in one, five, perhaps ten gram sizes. I have been limiting my silver purchases to five ounce coins or less. There are a few reasons for this. They are far more exchangeable in small sizes. You can buy on the dips easier at better prices and average your costs lower. You can sell what you need to in a pinch. The Obamacare reporting requirement is obviously a large part of my decision to do this. One of my bullion dealers sells Eagles in those plastic rolls of 20. Currently he is out.

Clearly if you own gold in one ounce sizes and up- or silver in 100 ounce bars- this year might be the year to convert those sizes into smaller types.

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