How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bkb1956 Your Own Question
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 2827
Experience:  IRS Enrolled Agent, 18+ years of experience in tax preparation with associated finance experience.
71603090
Type Your Finance Question Here...
bkb1956 is online now
A new question is answered every 9 seconds

My dad has been buying gold and silver coins lately and

Customer Question

My dad has been buying gold and silver coins lately and wants me to inherit them when he passes away. I told him that I rather get cash instead of inheriting a bunch of coins. He figured that the value of the coins will go up and I could sell them if I
need the money to make ends meet. Is that a wise financial decision of my dad investing in coins for my future? Personally, I don't think buying coins at a low price and selling them at a higher price is a good financial move. I am worried when I sell the
coins at a higher price, nobody would want to buy it and I am stuck with the coins.
Submitted: 1 year ago.
Category: Finance
Expert:  bkb1956 replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

There are always opportunities to sell gold and silver coins so I do not think that would be an issue. Whether or not the coins will be worth more money at the time of sale vs. time of initial purchase is the question. Some coins do appreciate in value while others do not, and you would receive the face value of the coins.

Please keep in mind that if you sell precious metals for more than what you paid for them, chances are pretty good that a tax liability will exist. You will pay capital gains tax on the difference between the basis (the purchase price when they were bought) and the selling price. The maximum capital gains tax rate on collectibles is 28%. However, in the case of an inheritance, the basis of the metals is equal to the market value of the metals on the date of the death of the person that left the metals to you. If you were to sell the coins very soon after you inherit, there will probably not be any capital gains tax.

The following link contains excellent information which you will find helpful and which you may want to show your dad:

http://www.jmbullion.com/investing-guide/taxes-reporting-iras/capital-gains/

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb

Expert:  bkb1956 replied 1 year ago.

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me for a portion of the fee you previously paid.

Best regards,

Barb

Related Finance Questions