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FoolzGold

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Reputation Activity

  1. Haha
    FoolzGold got a reaction from Goldflinger in If you were to start stacking again from scratch, what would be your first purchase?   
    I can't help but notice that so far all the advice about stacking silver on the silver forum of "The Silver Forum" pages has been to buy gold.
    Time to re-name the website perhaps?
  2. Like
    FoolzGold got a reaction from FFkook in If you were to start stacking again from scratch, what would be your first purchase?   
    I can't help but notice that so far all the advice about stacking silver on the silver forum of "The Silver Forum" pages has been to buy gold.
    Time to re-name the website perhaps?
  3. Haha
    FoolzGold got a reaction from sixgun in If you were to start stacking again from scratch, what would be your first purchase?   
    I can't help but notice that so far all the advice about stacking silver on the silver forum of "The Silver Forum" pages has been to buy gold.
    Time to re-name the website perhaps?
  4. Like
    FoolzGold got a reaction from Scuzzle in If you were to start stacking again from scratch, what would be your first purchase?   
    I can't help but notice that so far all the advice about stacking silver on the silver forum of "The Silver Forum" pages has been to buy gold.
    Time to re-name the website perhaps?
  5. Like
    FoolzGold got a reaction from AuricGoldfinger in What is the best size gold to stack?   
    Checking the pricing on GSBe just now a random QEII sovereign is priced at 2.6% over spot. The QB Yale is at 4.6%. So, okay you're paying 2 points more for the QB, although actually only 1.2% more in real terms. That's a pretty small extra margin for what you can hope will be a much more significant boost when you sell the gold in the future.
    I would categorize a purely numismatic investment as one where the initial margin is significantly higher than this and where the resale value is based more on the scarcity/desirability/shininess of the coin than its PM content.
    For me the QB is a semi-numismatic investment, where the initial extra margin is a very small percentage over spot and you expect the resale value will largely follow the value of gold but with the added bonus of an extra margin over spot on resale that should hopefully equal or exceed that initial margin at purchase time.
    Basically, while the QB series is ongoing I personally believe that investing in the latest 1oz gold QB is going to yield a better return that investing the same sum in sovereigns. I wouldn't argue that for other bullion coins, and I could be wrong about the QBs but that's my personal feeling.
     
  6. Like
    FoolzGold got a reaction from AuricGoldfinger in What is the best size gold to stack?   
    Sovereigns seem to be the logical choice as pure bullion but if you're willing to pay maybe 1% more over spot then the 1oz Queen's Beasts coins must surely be worth considering given their potential semi-numismatic resale value. It's difficult to imagine them not being worth at least 1% more over spot than a sovereign in the years to come, although obviously you'd need to sell them carefully, not just take them to a local dealer as scrap metal.
  7. Like
    FoolzGold got a reaction from Frenchie in What is the best size gold to stack?   
    Checking the pricing on GSBe just now a random QEII sovereign is priced at 2.6% over spot. The QB Yale is at 4.6%. So, okay you're paying 2 points more for the QB, although actually only 1.2% more in real terms. That's a pretty small extra margin for what you can hope will be a much more significant boost when you sell the gold in the future.
    I would categorize a purely numismatic investment as one where the initial margin is significantly higher than this and where the resale value is based more on the scarcity/desirability/shininess of the coin than its PM content.
    For me the QB is a semi-numismatic investment, where the initial extra margin is a very small percentage over spot and you expect the resale value will largely follow the value of gold but with the added bonus of an extra margin over spot on resale that should hopefully equal or exceed that initial margin at purchase time.
    Basically, while the QB series is ongoing I personally believe that investing in the latest 1oz gold QB is going to yield a better return that investing the same sum in sovereigns. I wouldn't argue that for other bullion coins, and I could be wrong about the QBs but that's my personal feeling.
     
  8. Like
    FoolzGold got a reaction from Abyss in Freedom of information request - Royal mint   
    These were the figures for 1/4oz gold bullion QB sales from the FOI results previously published on this forum...

    I have an FOI currently in progress with the RM so hopefully should have a smallupdate soon.
  9. Haha
    FoolzGold got a reaction from Ablist in 2019 Perth Mint Next Generation   
    Wait, there are elements of Australian wildlife that aren't either vicious or lethal or both? I assumed even the butterflies down there are venomous and/or drink your blood. 🦋😨☠️
  10. Haha
    FoolzGold reacted to jultorsk in Freedom of information request - Royal mint   
    Seems that's their story and they're sticking to it. Here's verbatim from another FOI answer by the Royal Mint: "Declaring production figures on these [bullion] coins has the potential to impact sales and falsely inflate the prices in the bullion market. For example, if the production figure is considered to be low then the product could be viewed as a rare/collectible item and in these cases many retailers increase their prices. This causes confusion as to the distinction between core bullion products and commemorative/collectible items. There is then the clear potential to negatively impact the end customer as they could end up paying more for a bullion product than its intrinsic value."
    I feel so blessed that RM, purely out of the kindness of heart I'm sure, so looks after me to prevent any foolish confusion and safeguards me from paying more than the fundamental value for their coins. 😁 🙏 
  11. Haha
    FoolzGold got a reaction from h103efa in 2019 Perth Mint Next Generation   
    Given that you've essentially just classified your wife as wildlife you'll likely be finding out one way or another very soon. A brave man indeed. 😀
  12. Haha
    FoolzGold got a reaction from jultorsk in 2019 Perth Mint Next Generation   
    Wait, there are elements of Australian wildlife that aren't either vicious or lethal or both? I assumed even the butterflies down there are venomous and/or drink your blood. 🦋😨☠️
  13. Haha
    FoolzGold got a reaction from Martlet in 2019 Perth Mint Next Generation   
    Wait, there are elements of Australian wildlife that aren't either vicious or lethal or both? I assumed even the butterflies down there are venomous and/or drink your blood. 🦋😨☠️
  14. Like
    FoolzGold got a reaction from AgCoyote in 2019 Perth Mint Next Generation   
    Wait, there are elements of Australian wildlife that aren't either vicious or lethal or both? I assumed even the butterflies down there are venomous and/or drink your blood. 🦋😨☠️
  15. Haha
    FoolzGold got a reaction from SteveB in Silver price about to plummet   
    Do they control the tinfoil hat market too?
  16. Thanks
    FoolzGold reacted to BackyardBullion in Selling Silver & Gold as a hobby or a trade - it really matters so take heed!   
    Howdy all - this should be a fun and interesting topic, so please feel free to comment/PM me directly if you want!
    Quick disclaimer
    First off, I want to make it abundantly clear that this thread is not in any way meant as financial/tax advice.
    I am in no way telling you what is or is not the law or how it applies to your situation and circumstances. The purpose of this thread is to raise awareness of some of the forgotten or overlooked issues that come with buying and selling Gold & Silver coins on a regular or even semi regular basis. Also, this applies to pretty much everything else you buy and sell, not just coins. 
    I would highly recommend that if you are in doubt to contact HMRC directly or seek professional advice on your situation. 
    Selling Silver & Gold as a hobby or a trade - it really matters so take heed!
    You might ask, whats the problem? Selling some silver and gold is a great way for me to top up my stack budget, it raises my seller profile for when the time comes to sell other things and it is fun at the same time - not to mention that because it is gold and silver I am selling that it is a capital asset, not a trade so I am good to go!?
    The answers to the above are Yes's and no's - in short it is very complicated.
    So, it is no secret that I have been buying and selling silver and gold for a while now. I started, like many of you out there most likely, buy buying some cheap silver from Europe. My intentions at that time were to buy for £XX.XX price and then when the value of silver has risen to sell for £XX.XX price and make a profit. 
    Sounds great - and it was/still is the aim of the game for some of the silver and gold coins that we (Mrs BYB and I) buy.
    Most of us are probably drawn to Silver and Gold that are deemed to be Capital Gains Tax (CGT) exempt - Sovereigns, Britannias and the like. Let's say you buy £10,000 worth and in 20 years time it is worth £50,000. No CGT to pay on the profits, happy days!
    But, things are not always as simple as they seem. 
    It is very easy for your buying and selling to be interpreted as a trade rather than just a capital asset being sold. 
    Ever heard of the badges of trade? 
    If not, then have a look at this link: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205
    In a nutshell they are tests that HMRC will use to decide ultimately whether something is a capital asset being sold, or whether the sale constitutes trading. If the latter is deemed to be applicable, that means you have to pay Income Tax on your profits! All of a sudden your CGT investment could very well turn into just any other income and you may lose out on a significant part of your return. 
    I don't really want to go into too much detail on each badge, because they are going to apply differently to each and every person - but it is something to be aware of if you are a regular seller of silver/gold/coins or even anything else.
    However here are some key points to take note of:
    Is the intention to make a profit? Yes could indicate trading..... How often do you make similar sales? Selling on eBay, Social Media or the forum every few weeks? Sounds like a trade..... Did you borrow money to get stock?  Transactions are similar to other traders or trades you make? - are there other people doing what you are doing and operating as a business? Did you modify or repair the item? Coin grading comes to mind here..... How long did you own the item and did you get personal pride from it. If you bought it last week, sold it this week then this is probably a trade as a business.  But sellers get £1000 profit allowance - so we are all good. 
    You may or may not know that everyone has a £1000 tax free allowance for hobby trading/selling. Its the Governments way to encourage people to make a little bit of money on the side. However, this comes with a stark downside if you go over £1000 profit. You will be required to register for self assessment tax reporting (which basically means registering as a sole trader). You then need to declare all profits on your tax form, which you are then taxed on. 
    So, be aware that if you are a seller on this forum, eBay or even your own website that if you are making more than £1000 profit in a year and you are (under the badges of trade) trading rather than simply selling some of your assets, then you really need to start thinking about the good old Tax man. 
    There are stiff penalties for not declaring such income and you can be back taxed (I believe up to 7 years), charged interest on taxes not paid as well as penalties for late payment/non payment. 
    Be careful how much you sell as well -  you might have to register for VAT. 
    Recently you may have seen that we (Backyard Bullion enterprises) has had to register for VAT. This is because our Turnover was more than £85,000 in a rolling 12 month period. It does state that all "exempt" items from VAT are excluded in this - which means gold does not count at all on your turnover, in theory. But having spoken to a few accountants their thoughts are that if you are selling £100,000 worth of gold in a year, whilst no VAT should have been collected you may still draw the attention of HMRC for having such high turnover and be asked to account for yourself. 
    Who here wants to have that to deal with in their lives.
    £85,000 turnover sounds like a lot, believe me in the world of precious metals it is not. You sell 1 oz gold coins, 85 of them at £1000 each and there is your trading turnover threshold right there. 
    Becoming VAT registered is a VERY BIG HEADACHE and may cause issues for your own personal silver and gold investments 
    So, we in the Backyard Bullion household have had two very separate stacks of silver and gold. We have the business assets, coins we buy specifically to flip in a short time for profit. There is no doubt in my mind that these are trading assets and for the last 2-3 years of doing this they have been included in my books as that, I have declared each and every one down to the copper coins I sell and the £1000 proof coins. They go on my tax form and I pay income tax and NI on the profits. 
    But, there is a separate stack of metals which we are holding as (in our minds) capital assets. We intend to sell them well into the future. We are carefully looking at the badges of trade and have to take special precautions in terms of record keeping, purchasing records being especially important. The goal here is that we will be above reproach if we get accused of selling a private asset as a private asset and not as a business asset. 
    This is especially important when you are VAT registered and brings some really harsh realities for us. 
    For example, Silver Queen's beasts coins - we are going to hold these for a while and at some point we will want to cash those in for a profit on the premiums. If we satisfy the badges of trade for it to be a private asset then great. No VAT needs to be charged, no income tax needs to be paid. But, if our situation changed suddenly and I needed to sell the 20x 2 oz Yales I bought last month then we will likely be deemed to be trading. We will be forced to charge VAT (making them not practical to sell) or sell them for a loss after paying the VAT man what we may owe in their eyes. 
    This could be a big issue. 
    In summary
    This is a long post, I hope you have enjoyed reading to this point. It is very important for a lot of sellers on here to take heed of what I have had to say and to either seek advice of your own or at very least have a look at the situation as it applies to you and ask yourself, should you be registered for self assessment and/or VAT?
    Please let me know your thoughts on this very interesting topic!
    Backyard Bullion
  17. Like
    FoolzGold got a reaction from jultorsk in Perth Mint 2019 silver swan   
    First image I've seen of the Perth Mint 2019 silver swan (bullion). I liked the first two but I'm not so keen on this one.
     

  18. Like
    FoolzGold got a reaction from Shinus73 in Perth Mint 2019 silver swan   
    First image I've seen of the Perth Mint 2019 silver swan (bullion). I liked the first two but I'm not so keen on this one.
     

  19. Like
    FoolzGold got a reaction from Shaunbarry in Silver price for 10oz QB lion   
    People aren't buying/selling those for bullion value so they're worth whatever people are willing to pay.
    I can say that right now that's about 18% lower than the asking price on GSBe.
    Also, the buyback price offered by auragentum.de for these is currently the equivalent of £240. I've never tried selling through them but maybe it gives some idea of resale value through a dealer that recognizes semi-numismatic value.
    So the price is about half way between the going rate at a major dealer and what you could maybe resell it for at another dealer, which sound fairly reasonable to me.
  20. Thanks
    FoolzGold got a reaction from Paruwka in Silver price about to plummet   
    Gentlemen - it's tin foil hats at dawn. May the most fanatic conspiracy theorist win - or the one the [Rothschilds/Bilderbergs/illuminati/lizard people]* want to win!
    * insert your choice of world-order secret society here.
  21. Like
    FoolzGold got a reaction from Alex in There is NO silver shortage - Stop the myth - WHY are you still stacking silver ???   
    I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."
    Just replace "The Force" with "YouTube" and it all becomes clear.
  22. Like
    FoolzGold got a reaction from Pampfan in There is NO silver shortage - Stop the myth - WHY are you still stacking silver ???   
    I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."
    Just replace "The Force" with "YouTube" and it all becomes clear.
  23. Haha
    FoolzGold got a reaction from Abyss in There is NO silver shortage - Stop the myth - WHY are you still stacking silver ???   
    I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."
    Just replace "The Force" with "YouTube" and it all becomes clear.
  24. Like
    FoolzGold reacted to Goldhooked in There is NO silver shortage - Stop the myth - WHY are you still stacking silver ???   
    Perhaps we could have a sub forum for those that believe everything they see on YouTube?  The ‘YouTube fanboyz’ forum.  
  25. Haha
    FoolzGold got a reaction from Goldhooked in There is NO silver shortage - Stop the myth - WHY are you still stacking silver ???   
    I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."
    Just replace "The Force" with "YouTube" and it all becomes clear.