Buying gold and silver.

[Ruttin]

At what point do you guys start to sell your gold and silver and take advantage of the massive gains? Or do you hang on to it forever and pass it on to you kids/grand kids.

Forever

 

[Sum1]

Not sure this is entirely correct. Who the heck knows what my cost basis is/was if I paid in cash? I find it hard to believe how a person can be TAXED when the GOVT doesn't even know what a person paid for said commodity.

Are talking about being taxed on gold you sell?

 

[Skeeter]

I have 6 1oz gold coins I got from work 14 years ago. How Can I be taxed when I sell them when I have no idea what was paid for them??

 

[Maddog]

I have 6 1oz gold coins I got from work 14 years ago. How Can I be taxed when I sell them when I have no idea what was paid for them??

That is a good question.

 

[Pheasant 54]

You have to pay capital gains on it , if you don't know what you paid they will probably use the selling price for gold 14 years ago as your start point .My guess anyway

 

[Obi-Wan]

Not sure this is entirely correct. Who the heck knows what my cost basis is/was if I paid in cash? I find it hard to believe how a person can be TAXED when the GOVT doesn't even know what a person paid for said commodity.

When it comes to owing taxes to the Gov the proof is entirely in your wheel house

 

[3Roosters]

When it comes to owing taxes to the Gov the proof is entirely in your wheel house

If inheriting, am I wrong to assume my son will get a stepped up cost basis at my death?

 

[Obi-Wan]

If inheriting, am I wrong to assume my son will get a stepped up cost basis at my death?

I believe that would only apply to capital gains tax not property tax. Capital gains tax will be based on appraised value at time of inheritance and at the sale of inherited property. If he sells the inherited property for the appraised value at time of inheritance or less he will not have any capital gains tax. The property tax will be on value assessed by the county.

Anybody correct me if I am wrong on this.

EDIT - I thought I was answering on the property tax thread so ignore the mention of property tax.

 

[Maddog]

 

[Big Iron]

SILVER! Get on the train. Next stop $80/ OZ

 

[3Roosters]

SILVER! Get on the train. Next stop $80/ OZ

Hope you are right as I will really be smiling!

 

[Sum1]

Anyone wanna call the top? I’m glad I got a little gold and silver but something seems a little off kilter with these prices.

 

[Maddog]

I agree.
With stocks whenever I start doing the math on how well they are going, the stocks tank.

Well .... I have been doing the math with gold/silver ....

 

[Maddog]

Yep. Interest rate cut.

 

[Maddog]

THIS may happen.

What Happens When COMEX Can’t Deliver?​

Here’s where it gets interesting… If COMEX starts forcing cash settlements because they can’t deliver physical metal, manufacturers face a problem: they can’t stop production. If they stop producing, they make no sales. No sales means no revenue.

So, what happens next? They scramble to find physical silver elsewhere. And when that scramble begins, the physical market can break loose from the futures market entirely.

As Dario points out, this isn’t just a squeeze — it’s potentially catastrophic for financial institutions that rely on the paper market’s ability to function. The futures market loses its purpose if it can’t tie back to physical delivery.

Why Physical Holders Have the Edge​

If the paper and physical markets separate, price doesn’t stop going up just because cash settlements are being forced. Industrial buyers still need metal. Manufacturers still need to produce.

That means anyone holding physical silver continues to benefit as price adjusts to reality. Meanwhile, anyone holding paper silver during that period? They miss out.

Mike’s been saying it for 20 years: “Do not expose yourself to the failure of paper. Paper is a promise, and a promise can be broken.”

In the End, Price Will Solve Everything​

Mike closes with a powerful correction to Dario’s statement. Dario wrote, “Price will solve almost everything.” Mike’s response?

“Delete the word ‘almost.’ Price will solve everything.”

When the paper market can no longer paper over physical scarcity, price becomes the only mechanism that forces the market back to truth. And for those holding physical silver, that’s when the real advantage becomes clear.