How to Avoid Overpaying for Gold and Silver Bullion
- Know spot before you shop. Our home page shows the current gold, silver and platinum spot price.
- Calculate the premium yourself — see What is premium over spot?
- Be wary of high-pressure sales and "rare" or "numismatic" coin pitches. The CFTC warns about precious-metals pitches that promise easy profits and recommends checking a seller's registration and background (CFTC – Precious Metals Fraud advisory).
- Be careful with fractional and junk silver math. 90% "junk" silver is priced per dollar of face value. Dealers rate each $1 of face value at about 0.715 troy oz of silver to allow for wear (APMEX – 90% Silver Coins $1 Face Value ("contains .715 oz actual silver weight")). See junk silver prices.
- Look at the dealer's buy-back price as well as the sell price — the spread is your real cost if you later sell.
- Understand taxes. In the U.S., gains on physical precious metals held as investments are generally taxed as collectibles, with a maximum long-term rate of 28% (IRS Topic No. 409 – Capital gains and losses (collectibles rate)). Consult a tax professional.
FAQ
What is junk silver?
Pre-1965 U.S. dimes, quarters and half dollars made of 90% silver, traded for their silver content and priced per dollar of face value.
How are gains on gold coins taxed in the US?
Generally as collectibles, with a maximum long-term capital gains rate of 28% (IRS Topic 409). Consult a tax professional.