According to GoldDealer.com, you’re free to purchase any amount of gold you want for as much as you’re willing to pay for it, though there are some reporting requirements with cash. If you pay with a check or by wire, those requirements don’t apply. Today, the experts in precious metals from First National Bullion, the gold dealers Scottsdale collectors trust for high-quality service and industry knowledge, go over what to consider if you plan to buy gold with cash. We also discuss those reporting requirements we mentioned.
Cash Reporting Requirements
You can buy any amount of gold you want with cash. The reporting requirement kicks in if you purchase more than $10,000 worth of gold with actual cash or cash equivalents. In this case, you’ll need to fill out a Form 8300. It requires basic info (e.g., your name, address, and social security number). The dealer must present you with this form or face steep fines that could be as high as $25,000.
“Cash Equivalents” & Some Unique Situations
It’s just as important to pay attention to what’s meant by “cash equivalents” as you explore the possibilities with your gold purchases. If you buy gold with a series of money orders in smaller amounts, the $10,000 reporting requirement still applies if those money orders exceed $10,000.
Let’s say you go to a precious metals dealer with a cashier’s check for the purchase of more than $10k in physical gold. There wouldn’t be any reporting necessary in this scenario. In this instance, the bank you got the check from would have already done the reporting. However, there are some situations where the reporting requirement still kicks in even with a cashier’s check. For example, if you buy $15k in gold bullion from a dealer and pay with $6k in cash and a cashier’s check for $9k, expect the dealer to hand you a Form 8300.
Suspicious Activity Reports
Technically, a precious metals dealer isn’t required to file a suspicious activity report, or SAR. That said, some gold sellers may do this for the sake of erring on the side of caution if they notice what they consider possible suspicious gold-buying activity. This is entirely subjective. For instance, it may involve something like filing an SAR if you make a larger cash purchase that doesn’t meet the reporting requirement and do the same thing over the next several months. There are entirely valid reasons for doing this, such as not wanting to wait for a check to clear. Even so, a cautious seller may still file the SAR.
Other Tax Reporting Requirements
There are some reportable bullion products that require the filing of certain tax forms other than what has already been mentioned. These requirements aren’t based on the total cash value of the purchase. Instead, they’re based on the quantities you buy. There are also some tax reporting possibilities to keep in mind if you end up selling the gold you purchased and you make a profit from what you sold.
For information on any aspect of buying, selling, and owning precious metals, call on the experts at First National Bullion and Coin. If you’re looking to buy Scottsdale gold and bullion, you can trust our reputable dealers. We’re a boutique precious metals firm with experienced professionals, and we work hard to keep our investors informed with the most up-to-date market intelligence. If you’re looking to add precious metals to your portfolio, call us today at (480) 546-5089.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.