The outdated nature of physical gold and silver is one of the most attractive features of metals. They can't be tracked electronically, and in this era of government surveillance, that's increasingly important. Since many bullion customers are already skeptical of the possibility that their postal worker knows that they are delivering precious metals out of fear of being stolen, the idea that a purchase of gold could be linked to all kinds of personal data about the buyer should be alarming. Furthermore, those looking to rollover their 401k to a Gold IRA Account should be aware that NFC-compatible coins or ingots could generate sales reports that include location data and the quantity of metals purchased. Basically, this defeats the purpose of owning physical gold if the government, financial institutions, or even potential criminals can simply access a database to find out who has been buying precious metals (and where).
The 1099 series is a set of forms used to report profits earned by non-corporate salespeople. They allow the IRS to prevent many cases of tax evasion. Keeping track of people who may be selling items as a source of income is a key approach. In the context of precious metals transactions, dealers must complete a Form 1099-B.
This is done when a customer sells any of the products mentioned in the IRS's list of reportable items in specific quantities, which we'll discuss later in this article. For really expensive coins, it is recommended to classify them through the PCGS Secure Plus service. This way, if the coin is lost or stolen or even altered to change its appearance, the coin can always be tracked if it is sent again through PCGS Secure Plus. Among the currencies that are subject to notification are 1-ounce maple leaf-shaped gold coins, 1-ounce gold Kruggerand coins, 1-ounce Mexican ounce gold coins, and any U.S.
coin made up of 90% silver. These pieces include, among others, gold coins in fractional denominations; Eagle coins in American gold and silver; the U.S. currency created after the creation of the IRS list of reportable items and any piece in foreign currency that is not explicitly mentioned in the previous section.