How would you account?

[inerlogic]

I probably know how i should do this, and i'm pretty sure i know how i will do this, but what would you do?

My background is in engineering and economics, i love numbers and spreadsheets. I have one such that tracks my metal purchases and any gains/losses. I have an account with Apmex and signed up for their card for the points (free metal!) But now i'm wondering how to credit the points.

I had earned enough points last month for a nearly free 10oz silver bar, to avoid state sales tax my order was over $1k, i ordered 4 10oz bars and spread the points value among them for my accounting purposes.

After watching a video on the Perth mint i decided i wanted Kangaroos, new ones have king Chuck, i wanted QE2, so i ended up putting chuck and liz in my cart. Then Apmex had a deal, 1gr AU at spot, so i added that to my cart, when this month's points were credited, i had enough that my 1 gram (and the shipping cost) would be free.

So, would you mark the gold "cost" as $0 or would you take the $89 credit and spread it equally among the gram and the 50oz of kangaroos?

Or nerd bonus, would you split the $89 credit by "weight" of the underlying spot prices?

Crediting weighted seems fair, and i probably should do that, but i like the idea of a free gram of gold. BUT (last but i promise) the Roos came with a premium which the credit would help with.

 

Thank you for indulging my craziness.

 

[Darr3nG]

41 minutes ago, inerlogic said:

split the $89 credit by "weight" of the underlying spot prices

^this

[inerlogic]

Just arrived at my box today.

The 2024 Chuck Roos still had the factory seal while the QE2s have been bouncing around since 2022 and were opened....

[Bratnia]

Different places (countries) have different rules and classifications. In the US I believe you pick either LIFO (last in first out) or FIFO (first in first out) ... and then consistently stick with that for all your investments (taxes). In the UK average cost basis is applied.

For a single order the average applies, you couldn't for instance claim that 1 oz was free and another 10 oz alongside that cost $2500 and that the free coin had been received first (or last).

[Mysstree]

Interesting, not my way of doing things but can see the attraction if you are into economics, numbers and spreadsheets.

buying a coin or bar for me is like buying a new phone, a car, a watch or something else physical. Yes i am trying to preserve my wealth and not likely to lose on gold and silver as you do on a car, phone and (depending on the market) a watch. I buy what i like if i have the funds and its not overpriced or in my opinion overvalued.

i dont keep records of what i paid (keep paperwork from any dealers) for anything but its easy enough to check up by date of purchase.

If i were dealing (buying and selling) my approach would be different however still in the stacking phase.

[inerlogic]

11 hours ago, Mysstree said:

Interesting, not my way of doing things but can see the attraction if you are into economics, numbers and spreadsheets.

If i were dealing (buying and selling) my approach would be different however still in the stacking phase.

I'm just tracking for myself, i'm buying to preserve at a minimum, not expecting an investment return, but it's nice (for me anyway) to know where i stand.

I have a 1oz silver bar my step-father gave me back in the 80s, it must've been after the Hunt brothers crash.... or maybe before the run up? I don't know, but i know he paid $8 for it, and told me to hold onto it.

17 hours ago, Bratnia said:

Different places (countries) have different rules and classifications. In the US I believe you pick either LIFO (last in first out) or FIFO (first in first out) ... and then consistently stick with that for all your investments (taxes). In the UK average cost basis is applied.

Yeh, i have no intentions of involving the government, the US isn't like the UK. Paper money transactions over $10k need to be reported.