RE: The Inconvenient Truth about Junk Silver
I was saving money up to buy some junk silver for my stack. I basically only see it as a way for barter, especially during a financial crisis. I agree, many people do not even recognize the value in these coins. And the silver coins have varying purities and weights, so that adds a big layer of complication. If the fiat banking system collapses, as I think it might do in the coming years, silver and gold will explode. During such an event it will be wise to have junk silver on hand to make small transactions. Why use your big coins and bars first? But I totally agree, there is going to be a lot of barriers with average people who are not financially intelligent. How the hell do I prove that 1964 was really the last year coins were made of silver, or that nickels are nickel and not silver unless you have a wartime? Such deals will result in headaches.
Can you explain how capital gains taxes do not apply to junk silver? I have never heard of that before.
Thanks
@voice-of-apollo I agree! This isn't stopping me from stacking the stuff, because I really do believe it is going to explode if an economic crisis ever happens. As for the capital gains tax - there are two trains of thought here. First, many states (including my own , CO) have laws that US minted silver cannot be subject to taxes (I believe - and don't quote me on this - that American Silver Eagles also apply). Second, there is the idea that you can BUY something using these coins, with their silver value - but claim them as spending the face value. (For example I could buy a car with 500 Morgan dollars, and claim I bought the car for 500 dollars) - This circumvents the $10,000 capital gains tax laws
That's very interesting. I'll definitely look into the tax consequences. I was of the simple belief that, besides barter, any capital gains need to be reported.
If you find anything out, let me know! I am always hungry to learn more - and spreading valid and valuable information is my only intent!