While there are some pitfalls and common mistakes to avoid when you buy rare Double Eagles, the most common mistake that I see those new to purchasing rare gold coins make is this; they do not know what they want to accomplish when they purchase rare gold coins. For most, the only answer to the question is “to make a profit”. Making a profit by buying rare gold coins, or more specifically rare Double Eagle gold coins is a little more complicated than paying four thousand dollars and the selling for five thousand dollars. While this may seem like a profit of twenty-five percent at first, taxes and holding time have not been entered into the equation, and once you do enter these factors and work out the numbers, buying at four thousand and selling at five thousand may actually produce a loss for many people in many different situations.
Have A Very Competent Rare Gold Coin Dealer And Tax Professional
When figuring out the best way to buy rare Double Eagle coins, having some bright minds in your corner goes a long way. Oftentimes, either the person selling rare gold coins has little else on their mind or in their experience other than producing a quick profit for themselves. Likewise, relatively few tax professionals are accustomed to dealing with rare gold coins and rare Double Eagle gold coins because few of their clients own them, and perhaps even fewer of their clients ever admit to owning them, because rare gold coins and rare Double Eagle gold coins are private long term investments and often the owners of rare gold coins keep the fact that they own them to themselves. ITM Trading sees the value of holding personal and private investments such as rare gold coins, but ITM Trading also believes that it is the responsibility of all good citizens to pay taxes when taxes are due.
The second best piece of advice I can offer to someone who is entering the rare gold coin market is to seek out a solid and credentialed rare gold coin dealer like ITM Trading, and then to seek out a competent and experienced tax professional versed in the market of rare gold coins and the profits they generate. Unlike many investments, however, rare gold coins and rare Double Eagle gold coins need only be taxed upon the sale, and not annually. Perhaps this is another reason that tax professionals are not accustomed to dealing with rare gold coins. Because rare gold coins and rare Double Eagle gold coins are long-term investments however, you will have some time to find a competent tax professional who can prepare a plan to optimize the tax strategy surrounding your rare gold coin investment. This is one of those situations where putting the cart before the horse can be truly detrimental, and I suggest speaking to a tax professional after you own the rare coins, rather than before, because in my experience most professionals who are unfamiliar with a certain financial product tend to warn against it rather than educate themselves about it. Missing out on an opportunity to diversify into rare gold coins because of the ineptness and ignorance of a tax professional, in this case, would truly be the worst-case scenario.
Part three of this article-blog wraps up the most commonly overlooked aspects to the often asked question, “what is the best way to buy rare Double Eagle gold coins?”