Are Us Gold Coins Legal Tender

No, there is no branch of the 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, beats Eagle gold coins and supports their sale with national advertising, sales brochures, gift boxes, etc., but in the fifteen years we`ve been selling their product, they`ve never asked us who is buying it. If you hold gold as an investment and later sell it at a profit, you will have a taxable profit in the long term or short term, like any other investment. Some documents advertised as legal tender are not. In the case of investment coins, where the intrinsic value of the coin is created by the precious metal content, there is no doubt that you get something that can be exchanged for its face value (although, since the value of precious metals is usually much higher, this would be a mistake). However, some commemorative coins – especially those that can only be purchased by the currency that makes them – are often exempt. In July 2002, a very rare Double Eagle gold coin worth $20,590,020 dating from 1933 was sold at Sotheby`s, making it by far the most valuable piece ever sold to date (a 1794 Flowing Hair Dollar sold for over $10 million in January 2013). In early 1933, more than 445,000 Double Eagle coins were minted by the U.S. Mint, but most of them were abandoned and melted down under Executive Order 6102. Only a few pieces have survived.

Investment coins sometimes have a face value as legal tender, which is minted on the coin. However, their actual value is measured by their fine weight, the current market price of the precious metal they contain, and the prevailing premium the market wants to pay for those particular investment coins. The face value is always significantly lower than the gold value of the coin. On the likelihood of gold hitting new all-time highs this year, Milling-Stanley said, “I think it`s possible, I`m not sure I`ll go as far as possible.” Indeed, in the narrow sense of the term, the term “legal tender” can only be classified as such if the addressee is willing to accept this particular form of payment (in the United Kingdom, the seat of the Royal Mint, it can also be used to settle judicial debts). There is also an interesting case from here in the United States that dates back to 2007. It began when legal action was taken against workers who received undeclared wages in the form of gold coins. From the worker`s point of view, they did not feel the need to declare these wages, because the total nominal value of these coins fell below the tax threshold. Technically, they received very little money and therefore had no tax liability, but at the same time, they had something with considerable intrinsic value.

The gold coins in circulation were usually made of an alloy because other metals are mixed in the coin to make it more durable. Fineness is the actual gold content of a coin or ingot and is expressed in “per millet” or thousandths. For example, one gold bar or gold coin identified as being fined 0.999 will be pure gold 999/1000, while the other 1/1000 will consist of impurities. The U.S. Mint has been stamping Eagle gold and silver coins since 1986. The currency is required by law to produce eagles in sufficient quantity to meet demand. In addition, there are many other gold and silver coins that are readily available, including the Canadian Maple Leafs and the South African Krugerrands. There is no shortage of parts today.

In Utah and other states, the measures also eliminate state capital gains or other taxes on coins. The state of Arkansas recently signed a bill that abolishes the sales tax on gold, silver, platinum and palladium bars and coins. The decision was welcomed because it facilitates the use of these coins as currency in the state. The weight and dimensions of a .999 piece of fineness like the Maple Leaf cannot be accurately reproduced by a gold-plated tungsten core because tungsten has only 99.74% of the specific weight of gold. However, counterfeit alloy gold coins (such as American Gold Eagle or Krugerrand crown gold alloy with a fineness of 22 carats = 0.917) may have the right weight and dimensions due to the lower density of the alloy. Such counterfeits can be detected by testing the acoustic, electrical or magnetic properties. The latter method takes advantage of the fact that gold is weakly diamagnetic and tungsten is weakly paramagnetic. The effect is small, so the tests require powerful neodymium magnets and sensitive conditions (for example, a gold coin suspended from a 2 m long pendulum or placed on polystyrene floating on the water), such tests can be carried out without special equipment. [16] Counterfeits with gold-plated tungsten are also used in the counterfeiting of gold bars. George Milling-Stanley, chief gold strategist at State Street Global Advisors, told Kitco News host David Lin that moving to Arkansas or any other state makes a big difference when it comes to getting people to use gold and silver coins as legal tender. Central banks` gold reserves are dominated by gold bars, but gold coins can sometimes contribute to this. Legal tender gold coins are a separate unit from gold bars.

We enjoy the status of legal tender, the latter is only a raw material. Gold has an international currency code of XAU under ISO 4217. ISO 4217 contains codes not only for currencies, but also for precious metals (gold, silver, palladium and platinum; by definition expressed per troy ounce). In both cases, these coins have the following characteristics: there are a number of reasons, but let`s focus on one: capital gains tax. The Fed is devaluing the dollar, but of course not gold and silver. When the dollar falls, metal prices rise. The government treats this as a “profit” and imposes a tax on it when the metal is sold. If the dollar loses half of its value, the price of gold will double, say from $1,400 to $2,800.

The government takes 28% of that difference, or about $400. The only way to avoid this tax is not to sell. This makes gold and silver best suited for long-term preservation of wealth: hoarding. We should abolish the capital gains tax on gold and silver. If the paper dollar serves our modern economy better than gold, then people will continue to choose it. Most economists, especially Nobel laureate Paul Krugman, are against any form of gold standard. They think that pure paper money is good for us and that gold will not work.

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