Gold Prices Frequently Asked Questions
How Much Money Should I Put in Precious Metals?
A good rule of thumb is 5-10% of your portfolio, although some clients have chosen to go heavier given the state of affairs in the world today. Ultimately, this is a personal decision.
What Sizes of Gold Should I Own?
If you’re moving a large amount of money into the market, you will get the best price per ounce in acquiring larger sized coins or bars. The smaller you go in size, the higher of a premium you will have to pay because the mints charge more for them due to their higher production costs. It’s cheaper for them to make a single, one ounce coin versus ten, one-tenth ounce coins.
If you are moving a smaller amount of money into gold, then you probably should acquire some fractional sized coins to offer you flexibility and greater liquidity in the future.
Do I Have to Pay Sales Tax?
Precious metals purchases are not subject to sales tax in the great state of Texas.
Are My Purchases Reported to the Government?
No, unless you are paying with $10,000 in cash or more in a single transaction. Other than this, we are not required to report your purchases of precious metals to the government. Keep in mind, however, that reporting MAY be triggered when you sell in the future. Certain items are reportable when you sell them, others are not. Our specialists are very familiar with these rules and can help you structure a private metals portfolio if privacy is very important to you, like it is with many of our clients. Just give us a call.
Should I Buy Gold Coins or Gold Bars?
As a rule, bars have lower premiums (amount over the melt value) than world minted coins. That being said, many of our clients are very concerned about their privacy when buying or selling gold. Gold Bars are subject to mandatory reporting when you sell back in the future (see ICTA Reporting Requirements). Many types of world minted coins we deal in are not subject to the same type of reporting requirements that gold bars have.
What does “troy” ounce mean?
In everyday life, an ounce is 1/16th of a pound. This is called an “avoirdupois” ounce and is used for weighing everything except precious metals and gunpowder.
A “troy” ounce is a unit of measure that dates to Roman times. A troy ounce is heavier than the avoirdupois ounce---1 troy ounce = 1.09714 ounces
What is the “spot” price?
The spot price is essentially an indicator from which all precious metal coins and bars are based from. In reality, the spot price of gold refers to the cost to take delivery of a 400 ounce bar of gold from the commodities exchange. The spot price of silver refers to the price of a 1,000 ounce silver bar on the commodities exchange. All bars and coins we deal in trade at a premium over the spot price, since the world mints must buy this material and then refine, package, and ship it to authorized dealers. These costs are passed on to dealers in terms of a “premium”, or the amount we have to pay over spot to get certain products.
So the Gold American Eagle and the Krugerrand are 22 Karat…does this mean they have less gold than a 24 Karat coin?
No. When a one ounce gold coin is comprised of 22 Karat gold, it still contains one troy ounce of pure gold. The refineries have chosen to make their products with alloys like copper and silver to harden them up and prevent them from showing scratches or marks. Since 24 Karat gold is pure, it will scratch more easily than a 22 Karat item.
How can I do business with GoldPrices.com?
If this is a new endeavor to you, we strongly urge you to call and speak with our knowledgeable specialists so they can give you a point in the right direction. We are happy to help!
If you are familiar with the different products we offer and have a gameplan in place, you can order online 24/7 on our website. Prices automatically update every 3 minutes and you can lock in trades in real-time. For first time orders under $2,500 you can use a credit card to place your order. If you are placing a larger trade, you should use a check or wire which will allow you to save 2% from the posted credit card price. For deals over $50K, we urge you to call us at 1-800-668-8771 to get a quote for the best prices.