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Author: mathetes Big red star, 1000 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Precious metals question Date: 6/4/2012 1:35 PM
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REtim: I have been dollar cost averaging into small quantities of gold and silver eagles for some time. If, for example, i sold an ounce of gold for a profit, how is the cost determined and how is the profit taxed? After all, gold eagles have no serial #/ ID other than the date on them so receipts seem pretty meaningless.

That is, if i sell that gold eagle, wouldn't i just claim it cost the highest price i ever paid for gold?

Just musing on some future time when i cash them in...


why would it be any different from what is allowed with stock transactions?

presumably whatever price you claim as the basis is something for which you do have documentation. And so long as we're presuming/assuming, let's assume you sold that entire highest price lot at the time of this hypothetical sale ... so long as you don't turn around a year later and try to get away with selling the same lot again, you'd be fine.

In other words, keep records of all buys and sells and don't try to get away with multiple claims for the same high cost lot.

But this is a layman speaking; I'll be interested in what the tax experts have to say as well.

mathetes
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