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How Much Gold & Silver Can You Purchase from a Coin Dealer in Cash?

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How Much Gold & Silver Can You Purchase from a Coin Dealer in Cash?

 

One of the most asked questions we receive from customers and prospective customers is how much gold and silver they can purchase with cash. This is a valid question, as many of our customers are private and prefer that their exchanges remain anonymous. In other words, their preference is to avoid filing forms with the IRS.

In the United States, at least as of this writing in early 2024, it’s possible to purchase up to $10,000 in gold and silver coins and bullion in cash without having to file an 8300 form with the IRS. This threshold applies per person and per transaction, however, family members are viewed as a single transaction. In other words, it’s not possible for a husband and wife to individually purchase up to $10,000 of gold and silver coins, as they’re viewed as a single person in the eyes of the IRS with respect to these types of transactions.gold and silver cash

It’s not uncommon for individuals to make multiple purchases during the year, but any pretense of structuring can cause potential issues for you and your coin dealer. In other words, it’s not permitted to purchase up to $10,000 in gold and silver coins and schedule an appointment for the following day and/or subsequent days thereafter with the intent of purchasing up to the allowable threshold. With that being said, there’s no issue with random and periodic appointments if there is no intent to circumvent reporting thresholds. See the bottom of this article for a drop down list of precious metal sales tax info by state.

One other quick point with respect to gold and silver coin sales. If a coin dealer is in a state that doesn’t charge sales tax on coin or bullion sales, they can only sell locally or to residents of other states that don’t charge sales tax, otherwise, they may be required to collect and remit sales tax to the buyer’s state. While large online coin dealers are equipped to collect and remit sales tax, most local coin dealers aren’t, so keep this in mind if you reside in a state that charges sales tax and you’re attempting to circumvent sales tax by traveling to the next state over. More times than not, you’re going to be unsuccessful.

While we’ve shared with you the permitted cash thresholds, it’s important to check with your coin dealer in advance to make sure that they accept cash, and if so, if they have an internal policy of how much cash they’re willing to accept. We’re in somewhat of a high-risk industry considering the type of items that we deal with, and everyone has a different risk tolerance. This is also one reason why many coin dealers have transitioned to an appointment only basis, as retail storefronts increase the likelihood of burglaries and robberies. This is also one reason why we maintain an office in an affluent area.

What if you work in the type of industry that primarily pays in cash and you want to make a cash purchase of over $10,000 – is this possible? While it’s technically possible, keep in mind that the coin dealer you’re working with will be required to file an 8300 form with the IRS. Secondly, as we mentioned above, large cash holdings increase a coin dealer’s risk, especially if this fact is well known by the public. While there’s nothing illegal about making large cash purchases, every coin dealer has a different risk tolerance and may or may not be comfortable with your proposed purchase amount.

Keep in mind that laws are always changing, so this article shouldn’t be viewed as advice, but rather general guidelines as of early 2024. Of course, if we see any significant changes in the law, we’ll do our best to update this article at our earliest opportunity. This of course all becomes a moot point if central bank digital currencies (CBDCs) are introduced and paper currency is called by the Federal Reserve, which is another reason why it makes sense to purchase gold and silver without restrictions while it’s still possible to do so.

Precious Metals Sales Tax by State (as of May 2024)
  • Alabama: No sales tax on bullion
  • Alaska: No sales tax at a state level
  • Arizona: No sales tax on bullion
  • Arkansas: 6.5% on all precious metal sales
  • California: 7.5% on transactions below $1,500
  • Colorado: No sales tax on most precious metals
  • Connecticut: 6% on purchase values below $1,000
  • Delaware: No sales tax
  • Florida: 6% on values below $500, with an exemption for legal tender
  • Georgia: No sales tax
  • Hawaii: 4% general excise tax paid by the seller, often added to the purchase price
  • Idaho: No sales tax
  • Illinois: 6.25% on South African Krugerrands only, all other bullion is exempt
  • Indiana: No tax on high-purity bullion, 7% on other types of precious metal
  • Iowa: No sales tax
  • Kansas: No sales tax
  • Kentucky: 6% on all orders
  • Louisiana: No tax on precious metals
  • Maine: 5% flat rate
  • Maryland: 6% on order values below $1,000
  • Massachusetts: 6.25% on transactions below $1,000
  • Michigan: No sales tax on high-purity bullion
  • Minnesota: 6.88%
  • Mississippi: 7%
  • Missouri: No sales tax on high-purity bullion
  • Montana: No sales tax
  • Nebraska: No sales tax
  • Nevada: 6.85% with some exemptions
  • New Hampshire: No sales tax
  • New Jersey: 7%
  • New Mexico: 5% paid by the seller
  • New York: 4% on transactions below $1,000
  • North Carolina: No sales tax
  • North Dakota: 5%, but with high-purity bullion exempt
  • Ohio: Basic sales tax of 5.75% applies to silver and gold bezels, high-purity bullion is exempt
  • Oklahoma: No sales tax on precious metals
  • Oregon: No sales tax on any precious metals purchase
  • Pennsylvania: 6% on silver and gold coins which are not legal tender, bullion is exempt
  • Rhode Island: 7% tax applies only to bullion that’s not been refined or smelted
  • South Carolina: Most precious metals are exempt, but some coins and processed items attract 6%
  • South Dakota: No sales tax on investment-grade bullion or legal tender
  • Tennessee: No sales tax on gold or silver bullion
  • Texas: No sales tax on gold or silver bullion
  • Utah: A 4.75% tax applies to bullion with purity below 50%
  • Vermont: 6% on all precious metal transactions
  • Virginia: 5.3% levied on all precious metals with no exemptions
  • Washington: No tax on any non-collectible precious metals
  • West Virginia: Investment-grade bullion and coins are tax-exempt
  • Wisconsin: A 5% tax on all precious metal purchases
  • Wyoming: A basic 4% rate on all precious metal purchases
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Tony Davis
Tony Davis is the owner of Atlanta Gold & Coin Buyers, a full service Atlanta based coin and bullion dealer specializing in buying, selling and appraising coins and coin collections of all types and sizes. Tony frequently writes on various economic and numismatic related topics affecting the coin and bullion markets and has been published on some of the industry’s leading websites, including Coin Week, the American Numismatic Association, Coin Collector, Coinflation, and Coin Auctions Help, just to name a few. Visit Atlanta Gold & Coin’s website at atlantagoldandcoin.com to obtain additional information on the products, services and educational resources offered by his company. Tony can be reached at sales@atlantagoldandcoin.com or at 404-236-9744

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