Can they take away your Gold?

The first paragraph below was added in retrospect because it relates the question written above.
Eli Mizrahi

A result of the recent head rolling due to the unwarranted investigation of our tax agency into the affairs of certain citizen groups last presidential election; this coming after the investigation of who the orders of what to do and when during the attack on our embassy and the ensuing death of some good Americans, is reminding us of issues related to our trust in our government and elected officials. What measures can or will the government take whenever it is expedient is rearing its head.           One more fact indicating to us that our elected officials may have agendas that aren't always the same as the needs, desires and wants of the folks who put them in office.

Many folks I meet in my practice like owning physical Gold.
Gold bullion, Gold or Silver coins.

According to a case study, 60% of boomer and senior men and 40% of senior and boomer women view Gold as an investment. They may not believe it is safest, but they feel it is a long term good investment for them.

Warren Buffet, arguably the most successful investor I know says that Gold does not replicate itself and does not create jobs. An ounce of Gold today is an ounce of Gold in 5 years. He prefers to invest in companies that create value and employment. He views Gold differently than the people in the case study. This isn't about my opinion on this issue, nor am I involved in Gold or commodities trade.

This post is meant only to report facts and get you informed so that you make the right decisions for yourself. I hope it is helpful.
After all its been said "The decision you make today, determine your destiny".

Gold purchases and sales may be "reportable" or "non-reportable".
Gold & Silver bullion of any size are REPORTABLE commodities with the Commodity Futures Trading Commission. Whats important is for you to know that there are tax consequences.

This is why it is important you know about The Gold Confiscation Act of April 5, 1933 signed as the Presidential Executive Order 6102 by Franklin Delano Roosevelt, forbidding the hoarding of Gold coin, Gold bullion and Gold certificate By section 5(b) of the Act of October 6, 1917, as amended by section 2 of the Act of March 9, 1933, entitled An Act to provide relief in the existing national emergency in banking, and for other purposes...in which amendatory Act Congress declared that a serious emergency exists.
Sections 1 through section 9 explain these regulations.

In 1933 the only way for our elected officials to print more currency was backed by the U.S. Dollar convertibility to Gold and the government was incapable of printing more money as it is does today. This was painful to politicians in those days as much as it is painful to politicians today, so they did what they considered the next best thing, confiscated American Citizens' Gold.

After the confiscation, the U.S. Government promptly adopted the Gold Reserve Act, January 1934.
Mind you the Gold taken was priced at $20.67 and it was revalued after the confiscation at $35 per troy ounce. Pretty profitable trade I'd say. Hey, they are always eager to help!

What you need to know is that all trade in bullion and most coins are REPORTABLE, while trades in specific few are NON REPORTABLE.
I'll bet you'd like to know which coins are not reportable, don't you?
I'll tell you.

Non-reportable coins are Austrian Philharmonics (Gold & Silver), Gold American Buffalo & Gold American Eagle, Silver American Eagles & Canadian Silver Leaf.
All other transactions are reported as commodity transaction and recorded by the government.

This is important to the extent that when it comes to selling your Gold for a huge profit, as everyone hopes, buying reportable commodities sets you up for tax scrutiny.
If you buy Gold from a dealer who never reported the transaction and is no longer in business, when selling your Gold, with current enforcement and regulation, your capital gain is the selling price.
Yes. That's right, your cost basis is considered to be zero.
The entire selling price is considered gains. 

This is not to suggest that you buy non-reportable metals to avoid paying the tax since record keeping is still your responsibility, but remember history and know that some of the better coins to purchase are the Austrian Philharmonic and the Maple Leafs since both are non-reportable and are not U.S. currency. Always know your history, so that you may be able to avoid repeating the same mistake. Remember the definition of insanity!


Once again this isn't meant to promote purchase or sale of any commodity and I am not licenses to  buy or sell commodities.