Legal Issues and Gold
Is there sales tax on gold ?
Not in our home state of Arizona. Therefore, purchases from Onlygold.com are free of sales taxes.
Are gold bullion coins legal tender ?
Yes, most of them are. This nominal face value allows them to travel across national borders without the taxation or fees imposed by many countries on bullion itself.
Do bullion coins come with a certificate of authenticity ?
Yes, a maker’s mark and statement of weight and fineness is stamped directly onto gold bullion, whether coins or ingots. The bullion itself, in effect, bears its own ‘certificate’ from whichever Mint or refiner produced it. Fortunately, gold is an element with a unique specific gravity, and other attributes which make it very easy to test for authenticity. The ancient Egyptians pioneered the ‘acid test’ for gold, and any jeweler, pawnbroker, or high school chemistry teacher can demonstrate the basics of gold.
Are there counterfeit gold coins ?
Yes, over the centuries, crude copies of gold coins have been made. But because of gold’s unique density (only platinum is as heavy), these copies are not very convincing. Once you hold a real gold coin in your hand, and you feel the heft and density of it, you realize that gold is simply hard to imitate. Of course, we recommend that you know your supplier when buying gold, just as you would with anything of real value.
Was gold illegal to own at one time ?
Yes, in this country, from 1933 to 1974 it was illegal for U.S. citizens to own gold in the form of gold bullion, without a special license. On January 1, 1975, these restrictions were lifted and gold can now be freely held in the U. S. without any licensing or restrictions of any kind.
When were gold restrictions lifted ?
December 31, 1974 ended the era of private U.S. gold ownership restrictions which had begun in 1933. As of January 1, 1975, U.S. citizens were again free to own gold in any form, including bullion, and in any amount that they can afford, without restrictions or any federal ‘reporting’ of those holdings.
Is there any limit on how much gold I can own ?
No, there are no restrictions on private gold ownership in the United States. You are limited only by your budget and common sense.
Do you report my gold purchases to the Government or any one else ?
Emphatically NO! Any business you do with us is absolutely private, and we take extraordinary steps to make sure your business with us is private and confidential. Also, we are under no obligation to report your gold purchases to any government agency. Nothing is stronger than our client’s trust that the business they do with us will never be revealed to anyone. We would love to publish the testimonies of some of our well-known clients, but their gold ownership is, for obvious reasons, a very private thing.
See our page: How we are different from other national firms that sell gold coins
Aren’t transactions of $10,000 or more reported to the government ?
Only if they involve actual currency, i.e., a suitcase full of $100 bills, or cash instruments such as multiple cashiers checks which are smaller than $10,000 each but total over $10,000. There is no report, or registration, or any such paperwork on transactions involving single checks or bankwires of whatever size. Currency regulations involving amounts of over $10,000 were designed to thwart money launderers and drug dealers. This is a common area of misunderstanding, but the bottom line is that there is no report made on ordinary transactions of any size, paid with a check or bankwire.
If I sell gold to you, is that reported ?
Certain forms of gold which traded as commodity contracts in 1982 fall under the Broker Reporting Act of 1982. Specifically named are South African Krugerrands, Canadian Maple Leafs, and Mexican gold Onzas in quantities of 25 ounces ( one ‘contract’) or more. Sales of these items in contract quantities require a 1099B IRS information form, reporting the sale of a regulated commodity contract.
Do I have to report my gold coin purchases to the Government ?
No, there is no branch of federal, state, or local government that is interested in how much gold you might own. The U.S. Mint, a division of the Treasury Department, strikes the gold Eagle bullion coins, and supports their sale with national advertising, sales brochures, gift boxes, and so on, but in the fifteen years that we’ve sold their product, they have never asked us to keep track of who is buying it.
Do I have to pay taxes if I sell my gold bullion coins for a profit ?
If you hold gold as an investment, and later sell it at a profit, you will have either a long-term or short-term taxable gain, just as you would with any other investment.