Gold is an immensely desired precious metal that has long been valued as currency, wealth storage, and trading commodity. Furthermore, no legal restrictions limit how much physical gold an individual may possess.
Gold bullion can be purchased from various dealers, coin dealers, pawn shops or local sellers. You may also consider investing in ETFs as they make managing investments simpler.
How much can you buy?
Presently, there are no legal limits on how much physical gold you can purchase in the US. You can buy it from online dealers, physical precious metals dealers, pawn shops or big-box retail stores such as Costco.
Before investing in physical gold, there are a few key considerations you must keep in mind. First and foremost is making sure that you work with a trustworthy dealer; to do this, read reviews or consult resources such as Better Business Bureau to do your research.
Be mindful that investing in physical gold requires an upfront cost in terms of storage and insurance costs; be sure to include this expense when creating your budget. Also remember that buyers reliant on rising gold prices rely solely on rising prices to turn a profit, unlike when running their own gold mining operation which may produce additional metal and boost profits over time.
How much can you sell?
Physical gold does not provide passive income in the form of dividends or interest payments, which can reduce its performance in your portfolio.
If you invest in gold via precious metals futures or ETFs, you will receive periodic cash payouts that don’t compare directly with direct sales of bullion but can serve to diversify your portfolio and help make investments less volatile.
Regardless of where you sell gold bullion in person, be sure to shop around for the best prices. Avoid jewelers, storefront billion places and other “sell gold for cash here” places that mark up prices to compensate them in order to pay you fairly for your gold. Additionally, it may be necessary to report some or all of your sales depending on their value, so consult with a tax professional if selling large amounts.
How much can you store?
Gold buyers typically purchase small quantities at once to maintain privacy, anonymity and security. If purchasing more than $10,000 worth of coins or bars at once there may be tax reporting implications; please seek professional guidance from an accountant for guidance in this matter.
Home storage of gold can be an ideal option as you will have direct access to it and won’t incur the fees charged by banks and vaults for their storage services. But keep in mind that it requires an appropriate safe, security system, and insurance if ever selling to someone. Also keep in mind that selling will require reporting your sales to the IRS as required by law.
Physical bullion purchases are considered capital investments subject to taxes, so it’s wise to diversify your portfolio before purchasing gold bullion, so if its price decreases you won’t solely depend on it rising value for profits.
How much can you protect?
Storage of large quantities of physical gold bars at home may not be practical without specialist knowledge in gold investing. Storing physical gold is susceptible to theft or burglaries and costly to insure; in these circumstances it’s wiser to leave this task up to experts.
Experts generally advise investing no more than 5-10% of your portfolio in gold. This leaves room for investing in other asset classes like income-producing securities that could potentially expand your nest egg over time.
Noting the United States law on gold ownership, there are no set restrictions or limits as to how much physical gold you can buy and own. If making cash purchases of $10,000 or more in one transaction, however, notification to authorities must occur as this helps deter drug dealers and money launderers from buying large quantities to avoid taxes by doing so.