How Much Gold Can You Own Legally?
It seems as though everyone knows gold’s value as a precious metal, but many may be wondering how much of this precious metal you can own legally.
Due to the rarity and high price tag associated with gold, I am not surprised if you are determining any legal restrictions on ownership.
There is currently no limit on how much gold you can legally own in the United States. However, people may choose to limit their gold purchases due to budgetary considerations and the wish to maintain a healthy investment portfolio. Additionally, though there is no limit on gold ownership, those who buy or sell gold will still have to pay the necessary taxes.
Due to its price stability over time and high value, gold can be a solid investment choice. Keep reading to learn more about the limitations on gold ownership, as well as some things to keep in mind when deciding how much gold to purchase.
What is the Legal Limit on Gold?
Currently, there is no legal limit on gold, and investors can feel free to spend as much on this precious metal as their budget allows. Many people choose to invest in gold because of its immunity to most major market fluctuations and the growth of its value over time.
However, even though there are no legal limits on the amount of gold a person can own, take a moment to think before going out and sinking all of your savings into this precious metal.
People may choose to limit the amount of gold in their possession for the following reasons.
The Cost of Keeping and Storing Gold
Though there is no legal limit to how much gold you can own, there are some legal limitations on how you store this precious metal.
Many choose to invest in gold as part of their IRA savings, and because of this, it is illegal to keep your invested gold at your home or on personal property. For most gold investments, people will need to store the gold in a regulated and accepted gold storage facility.
if you are investing in gold outside of your IRA, there are many strict caps on how much you can keep in your private residence or properties, and these often hover at about $1,000.
So, if you are considering burying that gold in your backyard, you will need to rethink matters. The place where you store your gold should meet the following criteria:
The right storage facility for your gold is a necessity, and it is not free. The cost of storing your gold is also likely to increase with the amount of gold that you buy.
So, the cost of storage is something to keep in mind when deciding how much gold you should purchase.
Tax Payments on Gold
Taxes are unavoidable, and this holds true for your gold. Because they are an investment and considered as such by the IRS, you will need to pay taxes nearly every time you buy or sell gold.
The specific amount of taxes you pay will depend on how much gold you buy or sell, but in general, you can expect that if you spend a lot of money on gold, you will need to pay more taxes.
Speaking to a knowledgeable broker or investment expert with experience in precious metals can help you determine how much you can expect to pay in taxes so that you can form your budget accordingly.
Keeping a Diverse Investment Portfolio
A less formal but equally important reason to set a limit on your gold purchases involves the overall health and wellbeing of your investment portfolio.
Investment portfolios are healthiest when your money is divided across different sectors and investment types, so you will need to keep this in mind when deciding how much gold to purchase.
Although gold is very reliable, there is no such thing as a completely safe investment. It can still be impacted by global trends or other things that can impact price.
So, before you get carried away and spend all your savings on this precious metal, stop and look at the diversity of your investment portfolio and then determine how much you can truly spare.
If you are hoping to invest in gold through an IRA, many experts suggest only allocating about 5 or 10 percent of your investment money toward gold purchases so that your savings can remain as safe as possible.
There are many things to like about gold, one of which is its lack of limitations on how much you can purchase. Those who are hoping to invest in this precious metal can rest assured with the knowledge that there are no legal limits on the amount of gold a person can own.
However, there are still several things you should keep in mind when buying or investing in gold. There are associated costs with gold ownership including storage and taxes, and overall your investment portfolio will be healthier if you choose to keep your investment diverse.
While you won’t need to keep legal caps in mind, the limit on your gold ownership should be determined by your personal budgetary considerations.