Great Year-End Tax Strategy for Bullion Owners

Links to recent informative articles on precious metals and rare coins:

Why We’re Buying Physical Gold with a $1700 Target

2/3 of the Top Primary Silver Miners Suffered Production Declines in 2017

Gold Purchases by World Central Banks Rose 25% in Q3 2017

Dalio’s Bridgewater Boosts Gold Holdings

Russia Buying Gold at Record Pace, Unlikely to Lose Momentum

Russia, China to Set Up $1Billion Fund for Metal, Mining Projects

This Week’s Headlines:

Gold
Great Year-End Tax Strategy
Silver
Recommended investment commitment and diversification

GOLD

Finally, my year-end precious metal rally started last Friday. After over a month of the Gold price consolidating, with very low volatility while trading between $1,260 to $1,300 per ounce, I believe Gold is ready to move higher. Gold closed last Friday at $1,295 per ounce, up $22 for the week and at a five-week high.

The $1,300 per ounce resistance level is key for Gold. A solid move above the $1,300 level could help Gold reach its 2017 high of $1,362 by year end. Any positive political action in regard to tax reform legislation or strength in the U.S. Dollar could stall Gold’s rally. However, the fundamentals for Gold to move higher have never been stronger and a move above $1,300 should come by year end.

Today: Gold suffered from short-term profit taking after last week’s $22 rally. At this point Gold needs to stay above the $1,280 support level.

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Great Year-End Tax Strategy

As we approach year-end, it’s a good idea to look at any 2017 income tax liability. If you have sold some stocks, bonds or real estate in 2017 and have capital gains taxes payable next year, you may want to explore the best way to reduce those taxes. If you purchased Gold bullion coins between 2010 and 2012 and paid over $1,350 per ounce you have an opportunity to take a gain loss, which could offset any taxes due on other investments you made in 2017.

What I am recommending is immediately selling those Gold Eagles, Buffalo, Maple Leafs or Krugerrands and take your capital tax loss. Then, immediately replacing them with Uncirculated $20 Gold Saint Gaudens or Liberties (dated 1900 to 1928) at only a few percent more. This would lower your tax basis and provide an off-setting tax loss. A major benefit for this great tax swap is the record low premium Uncirculated $20 Gold Saints and Liberties are currently available for.

This strategy also works with Silver if you purchased Silver bullion coins/bars at over $20 per ounce during the same time period. I recommend you do this within the next month, so please call your tax accountant to see the size of your tax problem. Then, contact David, Jim or me to help simplify the transaction.

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SILVER

Last Friday Silver closed at $17.35, the highest level it has been in six weeks. Silver rallied $0.51 per ounce (3%) last week, compared to Gold increasing $22 (1.75%). Silver is up $1.38 (8.66%) since the beginning of the year. $17 is an important support level for Silver, and we need to see Silver consolidate between $17 and $17.50 for a while to build a base for the next attempt at the $18 resistance level.

The Gold/Silver ratio has decreased to 74.63-to-1.

Today: After last week’s rally, when Silver hit a high of $17.39 per ounce, Silver sold-off with Gold this morning. Right now, Silver is trying to stay above the key $17 level.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% of investment capital

Diversification:  Gold 55%, Silver 35%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products.

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All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

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