Buying gold with cash is one of the best ways to protect yourself from intrusion and an overzealous government. It allows the buyer and seller anonymity while allowing both to benefit from the transaction.
But unfortunately, there are also weight and storage issues that drive people away from gold. So, should I buy gold with cash?
Buying gold with cash provides many benefits to protect your finances from hackers or prying eyes. Buying with money should be your top priority if you are interested in keeping your transactions secure and out of the hands of the Internal Revenue Service.
Buying gold is still a solid investment, even with the rise of non-fungible tokens and cryptocurrencies. Using cash to purchase gold works excellent for all parties involved and is often the first stepping stone for new investors.
Read on and learn everything you need to know about buying gold with cash.
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Buying Gold with Cash
The focus on trading these days is on the electronic side. The convenience of trading has trumped all other types. When you use cash to buy gold, you are using a pathway that isn’t as often traveled but allows for great rewards and no heavy taxes.
You can buy small denominations of gold and never trigger one piece of IRS paperwork.
Some benefits of buying gold with cash are:
- Anonymity – Buying gold with cash keeps you protected from anyone knowing the transaction ever took place. This is important for people looking to build wealth off-grid or those who could be preparing for a change in the world’s economy. The best thing about buying with cash is that nobody has to know you own the gold. It’s all yours.
- No Receipts – Often, the seller will accept a handshake and cash to close the deal. This means that there is no paper trail connecting you to the seller or the gold, making you invisible to IRS interference once you are out of the store or function.
- Resale – Let’s face it, sometimes buying gold is a means to an end. Using cash means that you can resell at a different value at another time. For example, if you buy Gold Maple Leafs in the winter, you could have a different price point for resale by summer. No records mean you can increase the price as needed to profit.
No paper trail in cash sales also allows the new owner to set their price or stick with the market’s pricing. Cash is a viable option for everyone, but they should know some drawbacks to cash sales.
The Best Places to Buy Gold for Cash
Now that you have decided to pull the trigger on buying gold with cash, where do you start? That’s a common question, and you might be surprised at how many places are going to be interested in selling gold.
Some storefronts could deal specifically with gold sales and other places that might not seem obvious.
A few excellent places to buy gold with cash are:
- Coin Show – While collecting coins isn’t as popular as it used to be, a coin show is a fantastic place to find gold coins for sale. Vendors will have gold coins weighed and labeled for quick cash sales. These sales will be without a receipt.
- Jeweler – One of the best places to get gold for cash is at the jewelry store. Jewelers are willing to make cash deals for gold that rival those you would find at a coin show. If they own the business, it could mean you have a gold connection for years to come.
- Cash for Gold Store – Chances are you have seen these types of stores in your local strip mall. They make their bones trading gold for money and smelting their treasures down for even bigger profit.
Cash for gold has become the new pawnshop. People feel more comfortable trading at the known price of gold than taking the word of a pawnbroker who could be looking to increase their holdings.
Should You Buy Gold with Cash?
Buying gold with cash is a great way to invest. Buying gold in small amounts allows you to stay out of the way of the government while quietly building wealth.
There are many places to trade cash for gold, and you should do your homework to see which will work best for your situation. Be wary that gold could often be hard to resell, and it will take specialized storage to keep it secure.
Problems with Buying Gold with Cash
Even though the secrecy and cloak-and-dagger nature of buying gold with cash can be thrilling, there are some things to consider if you intend on making a habit of trading gold.
There are fees and other monetary thresholds that could keep your transaction public or even flag it for investigation by the IRS.
Some drawbacks of buying gold with cash are:
- Storage – Buying lots of gold means needing a solid place to store it. Bullion storage comes with high fees that could cripple your investment. At home storage can be dreadfully expensive and so bulky that it is hard to hide effectively. Gold is heavy, meaning the storage must also be made of rigid heavy materials.
- Fees – Trading gold in small amounts is a surefire way to keep you off of any financial organization’s radar. When you want to trade large quantities, more than $10,000, you will pay hefty fees and need to disclose the transaction amount to the government.
- Selling Problems – Something that most people don’t think about is that gold must be sold in exact amounts, making moving the amount much harder unless you are willing to smelt it down.
There are a few snags for cash/gold transactions, but nothing that will stop the deal from being made. The biggest problem for some is the transparency of the transaction.
If you have no qualms with government interference, then buying with cash is right for you.